The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-20
DOWNWARD RUSH IN
WHOLE STOCK LIST
Storm Center is Group Which
Has Enjoyed Rights
SUBSTANTIAL RECOVERY
Confusion In Market in ST. Paul Con.
tinues and Unsettled All the Rest.
Rights Admitted to
Exchange.
SUBSTANTIAL RECOVERY

New York, December ia violent
spasm of liquidation swept over the stock
market today and caused a downward
rush of prices that looked threatening
at one time A substantial recovery oc-
CURED before the closing The storm CEN
ter was the group of stocks which in the
customary expression of the stock mar
ket have enjoyed rights" recently,
phrase which operators in the stock mar
ket now use with an ironical emphasis.
The continued stringency of the money
market and the failure of any appreciable
relief from the operation of the treasury's
plan for assistance, had discouraging
effect on sentiment.
The crumbling of the market at weak
spots spread to pretty much the whole
market, although there were a few prom
Trent stocks which maintained a show of
resistance to the flood of selling. The con-
fusion in the market for st. Paul con-
tirued, and was an unsettling influence
on the whole market. The subscription
rights came off both classes of the stock
this morning. The rights were also adj
mitted to quotation on the stock eX-
change
The opening price for ST. Paul, with the
price quoted for the rights added, showed
a rise of S15 over the closing price for
the stock yesterday. The hope thus en-
IndI the disturbance Ill lHe
stock was over, was short lived and it
soon began to recede again under heavy
offerings The admittance to quotation
of the rights helped clear up one cause
OF confusion by providing a market Valu-
alton for purposes of filling collateral in
loans on st. Paul
The suddenness with which the books
of the company were closed after the an
ncuncement of subscription rights, and
the call for a $10000,000 installment of
subscriptions on December 81, on the eve
of the yearly money settlements. was the
subject of some bitter criticism. and of
professed fears of hidden design to dis
tErb the money market
The pursuit of this line of reasoning
led to some excited unloading of hold
ings on the part of spectators who had
been convinced that they were following
the leadership in the market of the most
Influential capitalists in the country. who
were banded together for mutual protec-
ton of the speculative position from
harm from the money situation. There
was an extraordinary confusion and con-
tradction also in the estimates of the
real value of the rights. which have been
offered so abundanty in the last few
days.
ST. Paul, Northern Pacific and Great
Northern preferred still suffered acutelv.
therefore, in the prevalent weakness. high
priced stocks generally were sufferers in
sympathy. There was an enormous spec
ulation in Reading and heavy selling
when rumors circulated that there was to
be no change in the dividend rate. The
extent of the recovery from the extreme
declines pointed strongly also to extensive
operations by bears. The presence of the
Secretary of the Treasury in the city
gave rise to conjectures of more substan-
tial measures of relief for the money
market. Sterling exchange was very
weak in response to the money stringency
and London showed keen apprehension of
demand for gold on the part of New
York.
New York bankers were inclined to the
opinion that a demand on London for
gold would be injudicious, as it was be-
lieved beyond a doubt that the Bank of
England would advance it's discount rate
tomorrow should gold be taken from that
market
The news of the presence i'm Wall street
Of the Secretary of the Treasury came
at a time when the liquidati ton had spent
most of its force The increase in the
dividend on the Lehigh Valley also re-
vived hopes which proved fallacious of
an advance in the Reading rate. The
covering by the shorts became quite pre-
cipitate and worked a material rally in
the whole market
The closing was strong and showed
number of substantial net gains. after