The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-15
MARKET FEVERISH
AND IRREGULAR
Tone Improved Though Re-
coveryiS Very Spotted
MONEY IN STRONG DEMAND
Northwestern Transcontnental Group
Get the Greatest Attention-Rights
to Subscribe to Great North
ern Completed Tuesday.
MONEY IN STRONG DEMAND

New York, December 14.-There was
greet variety and no little feverishness
il the movement of prices in todays
Stock market. The general tone became
much better than yesterday, and a re-
covery from yesterdays losses was
achieved, but in very spotted and ir-
regular manner The overwhelming share
of attention was given to the northwest
ern transcontinental group. There was ev-
idenee early in the day of the further di-
vergent movement in the Hill stocks and
st. Paul, but the former met effective
support, and the latter touched its high
est level comparatively early in the day.
The report of the question raised by the
attorney of Minnesota of tho legality of
the Great Northern stock issue now Of
fered to stockholders at par was believed
to account largely for yesterdays weak
ness in Great Northern preferred and in
Northern Pacific on the assumption that
the proposed new stock issue of the, lat
ter would be affected by the question OF
the Great Northern stocks validity. 1t
was asserted with great positiveness that
preparations were completed on THURSDAY
before the news of the Minnesota decision
before the announcement of rights TO
subscribe at par to s93,OOO,oU Oh ne"
Northern Pacific stock.
Today confident assertion was made
that 1t had been decided to issue the $i5,-
100000 of St Paul preferred stock al
ready authorized with privilege to stock
holders to subscribe at par. With eSti-
mates OF the value of the rights thus
accrued on St Paul stock the assumption
was suggested that feverish movements
of the last few days represented a. read
iustment of relative prices rather than
important transfer of holdings The esti-
mated value of the St. Paul rights equals
or exceeds the price at which the Great
Northern subscription rights. are, selling
In the outside market.
AS both stocks are Z per cent dividend
payers, the inference would follow that
the price of the two stocks should APP
rroximate a parity with rights in both
cases included. A shifting on a large
scale of speculative holdings from Great
Northern preferred to St. Paul would go
far to explain the contrary movement of
the two stocks.
Money continued in strong demand to-
day, the call loan rate rising as high as 10
per cent and recediHg only after the prln-
cipaI demand had been satisfied. Fore
casts of the bank statement were not re-
assuring to the establishment or re-
serves to the required legal proportion OF
gained a balance on the interior move
ment, and million dollars gold has come
in from Canada, but this was not suf-
fieient to offset the absorption of $4,5Sl, OCO
by the sub-treasury. With an indicated
cash loss of several million dollars the
restoration of a surplus would be de-
pendent, therefore, on a very heavy loan
contraction.
Cross Influences seem to have been at
work on the loan account large calling
of loans having been made in preparation
for payments falling due, while some ex-
tension of credits was probably involved
in other quarters in the accumulation OF
resources for these payments. Sentiment
is rather confident, however, of a relaxa-
tion of the money market next week. To-
morrow payments will be made of the
government interest dre up to May next,
amounting to some SIC, 900.
1t is expected that the government de-
posits with banks elsewhere TO the
amount of Sl000O,0o0 will begin TO return
to New York next week, and the effect
o. the purchase by the treasury of s10,-
400, coo of government bonds also will be
felt Tomorrow's large dividend and in
torest payment will he followed in natural
course by the return of these funds to
the channels of the money market. 1t
was the expectation that the present