The daily morning journal and courier., 1906-12-21
STOCK MARKET FEATURES
PRICES HAVE 4 SUBSTANTIAL
 RALLY.

Due to Short Covering and More OptIm-
 istic Views as to the Money situation
 Money 16 Per Cent. and Dropped to 4
 Closing Was Weak--A Critical Test
 of the Money Market Next Week.
 The Days Gossip.
 Stocks had a lively rally yesterday, due largely to covering by shorts and to a more hopeful feeling as to the money market.
 It remains to be seen exactly how great will be the need of additional shifting of the money markets burden, between now and December 31, or aft erward. If relief is necessary the stock exchange must do It's part in it.
 Although no more urgent liquidation may come, yet Wall street will have to go easy in speculation for a time, or else run up against another snag
 The cash gain by the banks so far is $4641, 900. A deficit of $1,O00,00O has to be overcome, and if the surplus at the beginning of next week, the most criti- cal of the year. is to be anything like a working amount, the aid must como from reduction of loans, Such con traction ought to be $15,0OO,OOO to $2O,- 000000.
 In spite of the easier tone to money, there were further calls upon Secretary Shaw for additional relief measures. Some of these were based on the the ory that by Monday the money market would enter the most trying period of the year so far as the possibility of a sensational advance in call rates was concerned.
 The drop of 1-2 per cent. in the re- serve ratio of the Bank of England would have been serious had it not come so near the end of the year, when a turn for the better is probable. The loss of bullion was $19, 9,O0O,0OO. Obvious 1y the bank could not afford to let gold go to New York. A considerable part of this weeks loss will be regained aft er the holidays.
 The opening of call money around 15 per cent. had but little effect. It was generally felt that the stringency was nearly over for the time-bein By early in the afternoon the rate had dropped to per cent. and offerings were fairly abundant.
 A larger supply of money by banks and trust companies was reflected in easier renewal rates and a lower aver- ' age of call loans. This release of. funds was mainly due to sentiment and based on the belief that Secretary Shaw 4 would rescue the market again.
 No market response was made by # American Ice stock to the superior court proceedings to dissolve the com pany. It has been selling around 80 re- 3 gently, or 15 points lower than the level ' Nat which 1t rested before the dividend was declared.
 The purpose of banking interests to leave no stone u1turned to lend aid to N the money market so as to prevent an- N other furry at the end of the year was shown by the decision of two more rail road companies yesterday to anticipate January l payments by sending out checks for the same about week ear Tier.
 3 The market was sustained by heavy short covering. This was by very N good class of buyers. It was freely x stated that the Standard oil interest N sold short during the big decline, and when they had prices at a level att tractive to them they commenced to buy back.
 The perfect control of Reading by the pool in it was shown by the action of the stock While many were disap- pointed that the dividend rate remain ed at 4 per cent, it made no difference in the purpose of the clique to hold the < price of the stock.
 MT. Hills statement in St. Paul that q the squeeze in money was temporary 4 affair and that general conditions & would work out all right was read with < interest
 The St. Paul incident appeared to i have dropped into the background. The result, as expected, has been that trad CTS are now giving this issue 'wide berth" Having been burnt once, most speculators are disposed to leave it alone.
 Conspicuous weakness was shown by the Hill stocks soon after the opening They did not respond to the rest of the
 market-acted rather as though the liquidation in them had not been com a pleted.