The Birmingham age-herald., 1906-10-21
DEMORALIZATION
 IN STOCK MARKET Heavy Inroad is Made on the
 Surplus Reserve
SWIFT DECLINES ARE MADE
London Was Heavy Seller In New York Market and Grave Appre- hension of Situation Is Re-
 ported From London.

New York. October 20.-The stock mar ket was thrown into demoralization to- day by the further consideration of the new conditions in the money market of fered by the advance in the Bank of Eng land rate to per cent yesterday, and by the heavy inroad on the surplus reserves of the New York banks revealed by the bank statement The conditions as the market closed were panicky and stocks were being thrown over indiscriminately and at swift concessions in prices. Some of the principal declines will sufficiently picture the conditions. Great Northern preferred broke 8. Anaconda 101s, Read Ing 61s, St. Paul and Canadian Pacific 4%, nInion Pacific. Atlantic Coast Line and American Smelling 1, Northern Pacific and Colorado Fuel 3Ia, Baltimore and Ohio 3A and Louisville and Nashville and Amalgamated Copper 3 and in the list generally wide declines throughout rang ing up to 21a points.
 There was evidence from time to time of vigorous efforts to support the mar ket by taking over the offerings But the flood of liquidation broke through all e'''N- it into the demoralized condition in which 1t closed.
 London was a heavy seller in this mar ket and grave apprehension was reported in London for the consequences in the coming stock market settlement there The violent liquidation of speculative ac- counts was a demonstration that plans had mscarried through the change In the money situation The attitude of the Bank of England makes 1t clear that no further gold will be rellnquished to for eign markets and the necessity is recog- nzed of attracting funds to London suf- Hcient to repair the reserve of the bank. Severe measures for the cutting down of American credits in that market are looked for.
 The position in the stock market is generally understood to be maintained to an important extent by credits thus held. The currency movement to the interior, especially to the cotton region, has been resumed in full force, and the New York exchange has fallen back to 40 cents dis count at Chicago. The bank statement did not reflect all of the expected drain on this account, and on account of the Canadian withdrawals. But the $16,7O0, 700 loan expansion Is clear notice of the pressure for credits which the London developments have thrown back upon this market. Reports were current to- day of some large time loans being nego- tiated here and rates in that department are per cent strongly bid for all dates with ar exception of higher rates next week Relief by stock market liquidation was thus plainly indicated Its violence ahd precipitaney. however, were uneX- pected and the sentiment disturbed and anxious.
 Total sales of bonds par value $l444, 0O0
 The apathy of the New York stock mar ket during the week has been attributed more in the common estimation to the approach of the elections. The public has been out of the market and it is obvious also that market operations by the power ful combinations have been discontinued. The smaller class of traders have had the market to themselves. Confidence was general in the advance in the dividend rate of Amalgamated Copper to per cent. but all speculative movements in the stock to advance the price met with opposition in the form of sales of the stock in sufficient volume to check the advance. It was the general suppositlon