Los Angeles herald., 1906-12-15
INTEREST CASH
TO HELP MARKET
WALL STREET STOCK BROKERS
CHEER UP
Many Securities Show New Strength
Hill Stocks Engage Chief Atten-
tion--TaIent Looks for Relax
alton in Money Market
Rv Associated Press.

NEW YORK. Dec. 14.--There was great
variety and no little feverishness in the
movement of prices in today's stock mar
ket. The general tone became much bet
ter than yesterday and recovery from
Yesterdays losses was achieved but in q
very spotty and irregular manner
The overwhelming share of attention
was given to the northwestern trans
continental group. There was evidence
early in the day for further divergent
movement in the Hill stocks and st. Pau !;
but the former met effective supprt ana
the latter touched Its highest leNed COM
paratively early in the day.
The question raised by the attorney gen
era1 of Minnesota of the legality of the
Great Northern stock issue now offered
to stockholders at par was believed 70
account largely for yesterday weak
ness in Great Northern preferred ana IN
Northern Pacific in 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 positiyeness
that preparations were completed Thurs-
day before the news of the Minnesota
decision for the announcement OF the
right to subscribe at par for SgS,0OO,OOO OF
new Northern Pacific stock Today con-
fdent assertion was made that 1t mad
been decided to issue the $25.O0O.0OO of st;
Paul preferred stock already authorized
with privilege to stockholders to sub
scribe at par With estimates 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 readjustment of rela-
tive prices rather than important trans
fer of holdings.
The estimated value of the st. Paul
rights equals or exceeds the price at
which the Great Northern subscription
rights are selling in the market. AS both
stocks are per cent dividend payers the
inference would follow that the price of
the two stocks should approximate a
parity with rights in both cases included.
A shifting on a large scale of specu-
lative holdings from Great Northern pre-
'ferred to st. Paul would go far to ex-
plain 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 receding only after the
principal demand had been satisfied.
reassuring as to the necessary establish
ment of reserves to the required legal
proportion of deposits. Sentiment is
rather confident however, of a relaxation
of the money market next week.
Tomorrow payments will be made OF
the government interest due up to May
] next amounting to some $12. COOL 900. II
is expected that the government deposits
in national banks elsewhere to the
amount of $10,000,000 will begin to return
to New York next week and the effect OF
the purchase by the treasury. of S10000.-
900 of government bonds also will be felt
Fomorrows large dividend and interest
payment will be followed in natural
course by the return of these funds tC
the channels of the money market
1t was the expectation that the pres
-ent pinch in the money market would bC
moderated by these influences that kept
the tone of the stock market strong to-
day.
Bonds We're steady. Total sales, pal
value So 291 600
United States bonds We're unchanged.