The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-02
EXTREME DULLNESS
IN STOCK MARKET
Many Buyers Leave Town for
the Holidays
UNION PACIFIC IS LEADER
ST. Paul Shows Much Strength and
There Is a Disposition to Couple
These Stocks as a Part of
Some Colossal Deal.
UNION PACIFIC is LEADER

New York. September Extreme dull
ness marked the course of today's brief
session on the stock exchange The at
tendance of traders was much below the
average, a great many having apparently
awaited themselves of the approaching
holiday to leave town. Those who re-
manned hesitated to follow the London
market, which reached a slightly higher
range for American securities. The halt
ing tone of the market was doubtless due
largely to concern regarding the showing
of the associated banks in their weekly
returns.
The known movement of money for the
week as shown in yesterdays preliminary
estimates, very strongly suggested a COM
plete wipng out of the legal reserves, but
1t was hoped that the large foreign loans
placed here at the rates for call and loan
accommodations would prove an offset to
this drain. Some comment was provoked
by the statement contained in the monthly
circular of a prominent financial insti-
tuition which offered suggestions for the
relief of the money market and again
urged the government at Washington to
anticipate the retirement of at least
part of the per cent bonds of 1907. Just
as on the previous days, Union Pacific
was again the leader If so dull a market
could be said to have one. This stock on
buying of the same character as previous
ly opened closed to its record price and
before the end OF the hour established a
higher price than before. St. Paul also
exhibited much strength and again there
was general disposition to couple the
movements of these stocks as a part of
some colossal deal. New York Central
also made a material advance at about
this time. The bank statement exceeded
the most sanguine expectations, loans de-
creaslng about s7.4OO,0O0 with the cash
loss much below general estimates. This
showing leaves the excess reserves at ST.
se9 600 as against $5,5OO,OOO in the corre-
spending week last year The list became
much more animated on the publication of
the statement with a general upward
movement, Union Pacific advancing to
194ss but closing at a fractional decline.
This represents a net rise of over 30 points
since August II. the date Of the Pacific
dividend announcement
The final trading disclosed some realiz-
ing for profits, but the tone was fairly
steady.
Returns Of the Louisville and Nashville
road for July showed a gain of over $780,
900 in net earnings while those of the
Rock Isand-Frisco system for the same
period increased almost $375,O0O
Bank clearings throughout the country
for the week increased over % per cent.
Sales of stocks on the exchange exceeded
those of the same month last year by over
II 500 600 shares, though bond sales de-
creased over $33 900, 600
Today's sales of bonds, par value $780,
600
Business was on a smaller scale than
in the preceding week but still sufficiently
large to Justify the belief that the con-
trolling powers have yet large quantities
of stocks to unload. The Hartman is
sues scared to higher flights, and with
them st. Paul. Atchison and some other
issues of lesser prominence. The Hill
stocks were also we'll to the fore though
definite details regarding the much-dls-
cussed ore deal with the United States
Steel corporation are still lacking.
The money situation was the all I'M
portant factor and evidence aplenty was
at hand to show that conditions had I'M
dergone no change for the better In the
last half of the week call loans ad-
vanced to s per cent, the highest figure
in over two months, and a level not be-
fore attained in any August since 1896.
alter the rate advanced to IL per cent.
Time money in reduced supply was quoted
at virtually per cent for all periods
and some six months loans on all Indus
trials were reported at per cent. Mil
Hons of dollars poured into the market
at the higher CALL and time rates, most
of It coming from International bankers,
who had sold heavily of finance bills so
n $ to avail themselves of the profits thus
offered.
An interesting point in connection with
the sale. of these bills was the remark
able decline in foreign exchange which
dropped to the fraction of q cent pound
sterling of that touched last April, when
the Secretary of the Treasury deemed
It advisable to encourage gold imports
by anticipating interest. The only one
small European engagement following the
decline in exchange was at first matter
of some concern. This feeling soon gave
way however, to the belief that tacit
agreement exists between American In
ternational bankers and their correspond
ents across the water, and a goodly share
of gold will come into this market should
the situation become more acute A mod
crate consignment of South African gold
ss scheduled to arrive in London early
in the coming week, and 1t is thought
our bid for gold will prove successful In
spite of higher premium reported from
London for both bar gold and American
eagles.
Australian gold approximating $1500.000,
was engaged. but that will hardly be
available until the middle of the month.
The bond market ruled dull and unin-
teresting though hopes for early better
conditions were expressed.
No news developed during the week
regarding the reported plan of the gov
eminent to retire part of the per cent
of 1907. It seemed to be the opinion of
shrewd observers that no part of the
recently acquired speculative profits would
soon be put into purchases of bonds of
the better class. Cuban bonds made a
sharp decline during the week. but re-
covered almost all their loss at the close.
In government bonds the Is registered
end coupon advanced u per cent with
an advance of 1 per cent in the new As.
Bonds.
u S. refunding rs, registered. ....io4s4
u. S. refunding rs, coupon...... ....lo4zs
u. S. 3s, registered .................... Io3It
u. 3. IS, coupon .........................1O 3Ia
U. S. old As, registered ................lo3A
II. S. old As, coupon ........,...........Io3A
II. S. new IS, registered. ........l3I
7 dc