The Birmingham age-herald., 1906-10-28
STOCK MARKET IS UNDER PRESSURE Prices Bid Up Sharply After
 the Report U. s, STEEL WAS A LEADER Closing Was Therefore Strong, But Moderately Actlve-Sales Have
 Slowly Diminished All
 Week.
U. s. STEEL WAS A LEADER

New York, October 27.-Transactions were not large in the two hours ses- sion of the stock market today. The mar ket was under pressure for a time dur ing the first hour, apparently of spec ulative liquidation, but this was complet- ed before the appearance of the bank statement, and after the publication of more buying orders appeared, especially in United States Steel, prices were bid up sharply. The closing was in consequence strong but only moderately active.
 The bank returns show @ reduction of Z7.6S450O in the deposit item, and of this upwards of s2600o,oO0 was in the credit &C., count. How the clearing house institutions were able to effect this showing was the subject of mystified comment. The fact has been well known that heavy pay ments were being made this week of ma turing loans in London, and 1t has been assumed that borrowing was being done in New York with which to meet these obligations. It has been reported that a single stock exchange house purchased s20, 100000 of sterling exchange bills this week for this purpose. A possible ex- planation of the failure of the foreign ex- change operations to affect the loan item of the banks lies in the suggestion that payments of the London obligations were not completed in time to figure in this weeks bank statement pending the ar rival of securities shipped from abroad, but will be thrown over into future state ments. It is not believed that the weeks liquidation of securities will account for the $20O00,O00 loan reduction, and it is as stunned that other institutions especially the trust companies, have taken over credits to a large extent from the banks Three-fourths of the total loan reduction is accounted for in the returns of three of the largest banks. The time money market was reported strong today, but money brokers reported that funds were offering against sterling loans. The for eign exchange market was weak and dis counts eased in London.
 The Bank of England shipped SLIPS GOO to Egypt, but a consignment of over S5,- 100000 of South African gold arrived in England.
 Total sales of bonds, par value. s642, ,0O0
 At the opening of this week there was spasmodic recovery from the demoral- ized break in prices at the close of last week. After that a gradual settling to 8 lower level developed. which carried prices on a diminishing volume of busi- ness back to the neghborhood of last Sat urday's prices. Mondays strong recovery owed much to the demands from un- covered short interest and to the market maneuvers of operators strong enough to contest the position of the shorts, and profit at their expense. At the recovery profft-taking developed on the part of those who had secured stocks on the bank or who had bought on Friday or Saturday of last week with the purpose of support ing the market against demoralzation without desiring to retain their holdings. The course of eareign money markets has sent stocks into this market for sale, and there has beer some speculative liduida- ton also for domestic account Large op- orators have been out of the market and banking interests were credited with a sentiment adverse to present speculative activity. When prices advanced they met free offerings There was evidence of sup port also on any considerable declines These manifestations were regarded as designed to maintain the market in a suspended condition and to keep specula- ton quiet. The desire to await the pass ing of the elections was in part the sup posed motive for this attitude as it was supposed to be for the laying aside for the present of some of the important financial projects affecting railroad sys- tens. which were the subject of rumors in the past. and were relic.- upon to stim- uate speculative activity.
 There were some other developments of the week calculated to repress speculative demand, although most of them were the natural outgrowth of the high pressure of prosperous activity In all departments of business and industry. Such were the formulated demands upon the railroads of organized bodies of their employees for higher wages and shorter hours Another result of the eountry's enormous traffic was felt in the growing shortagesof freight cars. which has become so marked as to threaten serious blockades and shortage of material for carrying or production in