The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-11-22
STOCK GOVERNED BY
CALL MONEY RATES
Market Shows Underlying
Strength But Tone Erratic
MONEY MARKET PUZZLING
Possibility of Interior Demand for Cur
rency Not Lost Sight of-tm-
portant Stocks Fail to Re-
spond to Advance.

New York, November 21.-There was a
rood deal of uncertainty in the move
ment of the prices of stocks today the
varied fluctuations being mostly traceable
to the changing course of the rate for call
loans.
When the rate ran up to 10 per cent in
the first hour, the resulting downward
movement of stocks was fairly compre-
hensiye. Afterward the market showed
no very consistent tone. The advances
were spotty and uneven, and there were
important stocks which failed to respond
TO the advance. The general impression
was one of resistance to pressure and of
underlying strength.
The recession in the money rate was
allowed to have an important influence
in the recovery The action of the money
market was puzzling. The rise of the two
previous days was in spite of factors
supposed to be working for the rcplen-
ishment of loanable funds, while today's
easing of money conditions seemed incon-
sstent with the cessation of some of
yesterdays favorite influences.
The recent upward course of New York
exchange at Chicago was reversed today
In spite OF the attraction of the money
rate of yesterday and this morning the
exchange was quoted at Chicago at 10
cents premium compared with 20 cents
Per $1,000 yesterday The possibility of
recurrence of the interior demand for
currency is not lost sight of, and the in
terror exchanges are carefully watched
for indications of it, There was deposited
at the sub-treasury also $4,000 for tele-
graphic transfer to San Francisco, said
to be attributable to the active work of
reconstruction going on in that city.
Foreign money markets were disturbed
by the new demand for gold from Brazil
which is making inroads on the Bank of
England, but the $4,000 withdrawn from
the Bank for Brazil today was partly
compensated by the gold secured in the
London market, and by over 81 100000 re-
ceved from Paris. London sentiment was
quoted by reports of additional sums to
be relinquished by the Bank of France
for London.
Time money rates here continued to re-
cover from Mondays recession in spite of
the decline in the later call loan market
From this time there was an inclina-
ton to look for some special cause for
the course of the call loan market. One
suggested explanation was an important
shifting of loans on account of large
estate which brought new supplies into
the call loan market. The Yielding of
the call loan rate has proved an effective
argument for renewed strength in stocks,
notwithstanding the obscurity about its
cause.
There was noticeable diversion of spec
ulative attention to low prices in the
stocks and circulation of rumors to ac-
count for some of them, while in others
specific explanation was lacking. The
rise in Pacific Mail was clearly enough
due to the strong stand for more ship
subsidy law taken by the secretary of
state in his speech at Kansas City. and
the assumption that the attitude of ad-
minstraton on the subject might be thus
inferred
There was a recurrence of active in
terest in the Hill stocks Union Pacific
and Reading. Illinois Central relapsed
from yesterdays violent advance. and St
Paul Emitted States Steel. Amalgamate ed
Copper and some other prominent favor
ties were backward.
Profit-ta1<ng by the professions affect
ed the whole list late in the day. and the
closing. was irregular and generally be-
low the best.
Bonds were irregular. Total sales, par