The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-12
STOCKS BOUND ON
TREASURY, RELIEF
Quick And Sharp Advances
Mark The Opening
BIG VOLUME OF TRADING
The Money Market Rules Easier and
London Discount Rates Recede
On Security Against the
Threatened Strain.
BIG VOLUME OF TRADING

New York, December H.-There was
d prompt and emphatic response today by
the money market and stock market to
the relief of the measures by the treas
nry department for the money stringency,
announced at Washington otter the mar
ket had closed yesterday. The rea1just-
ment of the price level at the opening of
the stock market was almost spasmodic
in its violence.
There were successive advances by sud-
den inroads of large buying orders at
different periods during the day. The first
quotation for money at the stock ex-
change was 10 per cent. There was a
furry to IS per cent late in the day,
but the ruling rate was lower than the
opening. Sterling exchange made a sud
den rebound from its rapid fall of yes
terday towards the gold import point,
and the feeling of relief in London over
this relaxation of the threatened strain
on that markets resources, was so great
that the open market rate for discount
rates there receded.
There was a decided expansion in the
volume of transactions at the stock ex-
change. The emphasis of the response to
The action of the Secretary of the Treas
ury was surprise in view Of the general
expression of opinion that the amount
of assistance to result to the money mar
ket would be moderate. 1t Is not sup
posed that any means to be supplied
by the plan became Immediately available
to the money market today. and it is
considered probable that there may be
nnFc idar Ill al tn, 4la 4ota
becoming available.
OF the sl0O0O,oOO of deposits to be made
with the banks, but 81 sec. 900 come direct
ly to the New York banks, the remainder
being distributed amongst banks in ten
other cities, with the likelihood that these
outside banks will have to make efforts
to secure proper bonds as security for
the government The offer to purchase
bonds is always slow to bring response,
and the terms offered by the treasury
provide no premium over the current open
market price for the bonds. The ready
response of the stock market to this in
tiuence was regarded before as evidence
of the strong latent sentiment on the
buying side, which existed in the mar
ket.
1t was evident also that a short inter
est OF unsupported proportions was left
in a vulnerable position by the easing of
tho money market The techniques of a
bear account in the stock market in
wolves not only the borrowing of stocks
hut the lending of money The recent
high money rates, therefore, offered at
fractions for short side of the market
not only for the speculative chances of
a fall in prices of stocks, but for the
profit in lending money.
The increased speculation today was
largely congested in stocks which are
the recognized favorites for operations by
pools and groups of large capitalists.
The jump in ST. Paul was accompanied
by rumors of. an early announcement of
subscription rights to new stock Read
ing and Amalgamated Copper were affect
ed by gossip of intended dividend in
Creases
An over-extended short interest was
credited with special influence in the rise
in Canadian Pacific to record price.
The SUBJ treasury continued to absorb
funds from the market and $150.000 was
deposited for transfer to New Orleans.
1t was a subject of comment that no
part of the intended government deposits
had been set aside for San Francisco
Notwithstanding the large part played by
demands from that city in the depletion
of cash holdings I'm New York.
Money brokers reported the time money
market sentimentally easier, but no large