The Birmingham age-herald., 1906-12-16
STOCKS HOLD THEIR
 ! RECENT ADVANCES
Bank Statement Was Better
 Than Looked For
DEFICIT REDUCED 5,OOO,OOO
Issue of Northern Pacific for Subscrip- ton of Stockholders, as Expected. Hill Stocks Strong Feature.
 Review of the Week.

New York, December 15.-The stock market today maintained the more cheer ful view of the speculative outlook re- flected in yesterdays sharp rebound from the depression of the earlier part of the week. The days market did not show great strength except in spots, but there was no important concession of the large 1ecoveries of yesterday.
 The bank statement was better than anticipated, although the improvement failed 10 wipe out the deficit in the legal reserve. The shortage was reduced, how ever to the extent of over S5,0OO, 900, leav- ing $1 G99 ,05O still to be made up The Showing of a gain in cash instead of the Estimated loss of from one to three mil- hion dollars, was unexplained but was supposed to be due to a larger showing of the government deposits with the bank under the treasurS's offer than had been counted on. Further gains are ex- pected from the governments offer next week.
 The return of some of the large divi- Iends payable today to the channels or the money market are expected 10 have an influence in the money market of the coming week. The S17000,00O loan reduc- ton effected by the banks contributed materially to the relief of the situation. The announcement of the issue of $95,oOO,- O0o of Northern Pacific stock for subscrip- tion of stockholders at par conformed to anticipation.
 The rights were quoted on the curb at 36a39, and the Hill stocks were strong features in the trading. So also was Union Pacific, St. Paul and Canadian Pacific showed some effect of profit-tak- ing. and this became fairly general after the appearance of the bank statement.
 There was vigorous rally before the close and the market closed strong,
 Total sales of bonds, par value, $996O
 The action of the stock market this week has been feverish under the infiu- ence of factors that were at times con ! ficting and which changed from time to tlne The money situation has worked ksome restraint on the speculation at all times and stringent conditions became aggravated as the week progressed. But the late break in the market was at tributed more largely to other causes.
 The acute weakness developed in the NIIil railroad stocks had a bad effect on Speculative sentiment, and the confusion Yin the various explanations for the weak ness rather added to it's effect. The course of the Hill stocks in the market } Ncent speculation and their response to the different stages of the speculation Is ac- depted as pointing to the probabilities Tn other cases. It is this condition that makes the statement of the stocks of large sympathetic effect on the whole market.
 Great Northern preferred has been the beneficiary of a series of profitable de- velopments which have given rise to q keen speculation in the shares. The an nouncement this week of the rights 10 subscribe at par to 40 per cent Of hold ings of the stock, is believed to end the series of special occurrences which have been the ground for the speculation in the stock. In the parlance of the stock eX- change all the good news on the stock IS \ out Speculative holders of the stock who Mad already not released their profits were knclined therefore to sell with the eX- haustion of possibilities for stimulating further buying of the stock.
 isThis selling met so slight demand that A violent break in the price resulted and the conclusion was forced that the speeu- lltion had run to excess. This conclusion was fortified by the rapid decline in Great Northern ore certificates, and in the sub- scription rights to the new stock dealt Tn the outside market. The decline was SD preeipitate that fears were aroused or