The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-29
PRESSURE ON EVE
OF SETTLEMENTS
Shifting of Loans Runs Call
Rate to 10
LIQUIDATION HILL STOCKS
Subscription Rights of ST. Paul Run Off
In a Way to Argue Ill for Pros
pectiVe Demand-Less
Fear of a Furry.
LIQUIDATION HILL STOCKS

New York, December 2S-The restrain
Ing influence of the coming January set
Elements asserted itself on the stock mar
ket again today. A shifting of loans be-
gan early in the day which ran the call
loan rate up to IS per cent and dislodged
some holdings of stocks. The covering of
short contracts which was effected in
yesterdays rising market, left the trade
of today deprived of that much demand.
There was evidence as well of renewed
pressure of liquidation in the Hill stocks
and the subscription rights of st. Paul
ran off in way to argue i'll for the
prospective demand for the new stock.
IA story was in circulation that a large
speculative holding of the Hill stocks
which was in a vulnerable position, had
been taken over at a private sale, and
1t was hoped that this would relieve
the stocks from the pressure of the
liquidation which has weighed on them
for several weeks, and the renewed de-
preston was the more disappointing.
The long decline in these stocks gave
rise to disquieting rumors about the
stock exchange today of damage which
might result. These rumors were dis
credited and passed out of consideration
when prices began to recover late in the
day after the principal money require
ments had been met at the stock ex-
change
As loans made today carry over till
the last day of the year, there was a
growth in the feeling of confidence that
the year end would be bridged without
rf01a H.,
The contrast in the action of the stock
market in view of this tranquil condition
in the call money market with the rapid
rise in stocks at this time last year,
when money went to 125 per cent on call,
was the subject of much comment. The
most plausible explanation of the cor
trast is the more widespread stringency
in the worlds money market this year
which has obstructed the efforts of hold
ers of securities on margin to secure
resources for Carrying them in foreign
markets, and thus to ignore the fluctua-
tons in the local money rate.
The usual estimate of the weeks cur
rency movement showed balance in
favor of New York. a large proportion
of which was believed to be by receipts
from Canada. The sub-treasury opera
tions absorbed several hundred thousand
dollars from the market, but the net
gain OF the banks is estimated at between
two and three millions of cash 1t is
likely, however, that the principal eff
feet of the preparations for the annual
settlements are reflected in the loan item
of the banks.
There was no rally in the foreign ex-
change market. and there was further
easing of the discount rate, both in Lon
don and Berlin. a surrender of more
than sS,OOO,O00 in gold to the London
market by Paris was a feature of the
days news. The London money mar
ket as rule. reaXes very quickly after
the annual settlements have been made
and the year-end window dressings re-
quirements met. The present low level
of exchange points to a movement of gold
from London to New York, as a CON
sequence of any material easing of the
money situation in London.
The news of the death of President Cas-.
satt of the Pennsylvania railroad, was
of almost no effect on the stock market
and did not come as a surprise, the fact
of his declining health having been well
known for many months past. The late
recoveries in the market We're well held
and the closing tone was fairly steady