The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-01

the public Reports in the last two days
of hitch in the negotiations have aroused
a fear that the project might fall through,
but the effect of these reports on the
prices of stocks concerned in the project
discloses a realization on the part OF
speculative operators that the price move
ment in them have been extravagant ana
beyond anything warranted by the prom
ise of the actual accomplishment on the
proposed projects. The action OF the cop
per and metal stocks shows the results
of similar conditions in the speculation
The formation of the Butte Coalition
Mining company and the taking over OF
the opposition copper properties In Mon
tana in the interest of the Amalgamated
Copper company were recognized as IN
adequate grounds for the extent OF the
speculative advances in the stocks con-
cerned Rumor has continued busy in an
effort to sustain prices with the alleged
further projects since the Montana set
Element, and seepticism over the grounds
of these rumors has been gaining force.
Similar cases on a minor scale might be
cited at various points in the list of active
securities.
When the money supply grew restricted
today and active efforts had to be made
to secure funds by speculative holders
of securities thus instituted, 1t was found
against them as collateral for lending
money. The usual margins demanded on
market value of securities in the amount
of the loans were widely extended, and
in some cases it was reported that such
stocks were thrown out as collateral alto
gether.
The banking situation in New York Of
fered ample explanation for the active
money, the absorption of funds by sub
treasury operations alone since the last
bank statement amounting to more than
the surplus reserves of the banks as 1t
stood last Saturday, which was S5,125725.
Interior centers are also Withdrawing
funds from New York. The requirements
for the March / settlements necessitate
some large borrowing, and the centering
OF this demand on the restricted banking
supplies left the stock market Spectators
without means to hold their stocks. The
only relief to be had was by liquidation.
The sharp yielding in the foreign ex-
change market showed that some resort
was making to foreign money centers
for accommodation. That it was not suf-
ficient to carry through the situation was
amply evident from the result.
The course of the money market for
some time past has pointed to this out
come. but speculative operators have ig-
nored II owing to confidence in the prece-
dent of the market last December when
a 125 per cent rate for call money failed
to shake the market The conditions or
business in industry which held the mar
ket at that time were in prospect, with
the suspicion engendered in the specula-
tive mind that their influence had been
more than discounted in the action of the
market. The liquidation seemed to have
spent much of its force in the late deal
ings. but the nervous fluctuations at the
ast were not far from the low level of the
day. Losses in some OF the stocks most
severely affected ran to 10 and Il points,
while the declines ranged very generally
between and points.
Bonds were weak. Total sales, par
value. 81 630,000.
United States 2s registered advanced
4 per cent on call.