The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-13
MARKET GOES Up
AND THEN EASES OFF
Money Rates Show Some
Further Advance
SHRlNKAGE OF ACTIVITY
Practice of Holding Funds Out of the
Market for Higher Rates is
Charged Against
Banks.
SHRlNkAGE OF ACTIVITY

New York, December 12.-The advance
In prices of stocks was liberal early, then
CINE to halt, and finally turned back
wards again today. There was some
natural realizing ON yesterdays consider
able rise which served partly to account
for the reduction. There was besides, .
further advance in the rates for call
money, and less confidence as a result in
the adequacy of the assistance offered
by the treasury department to carry the
money market through the converging
demands of the January settlements.
With the reaction in the market, there
was some shrinkage in the rate of ac-
tivity from that of yesterday. There has
been no actual employment of the funds
included in the treasury's offers, as none
of it has come into possession of the
banks, owing to delays in the securing
and acceptance of bonds for security for
deposits, and the formalities required to
sell United States per cents under the
treasury plan.
The liberal Offering of funds yesterday
was thus to some extent the cause of the
excepted increase in resources before they
were in hand. This disposition on the
part of the active speculation to lick up
funds as fast available comes in for
its share of criticism 1t is also true.
however, that the sentimental effect of
the action of the treasury was to release
sums which had been held out of the
money market for higher rates, and which
was thus brought out.
IL was new requirements that stiffened
up the rate again today. The practice
of holding funds out of the market for
higher rates Is one of the counts in the
indictment that the discussion amongst
stock brokers is making against the
banks to account for the excessive call
loan rates recently prevalent. This dis
eusslon continues active in the finanl dis
trict with accusations on the one hand of
manipulation, and usurious interest
charges and with explanation and de-
tense from the brokers.
1t is the assumption that the compensa-
tion to the local banks for placing large
loans for out-of-town banks is in the form
of a commission, which would add how
ever, to the burden of the borrower. Re-
ports were received in Wall street to-
day that some of the interior banks were
dsinclined to accept the proffered gov
eminent deposits The short time fixed
for their being held, and the difficulty of
securing bonds for collateral, were of
fered as explanation of this attitude, but
1t served to create an impression llldI
the eagerness for additional money re-
sources was not as acute away from
New York as here
Preparation for the s10,0O0,000 Standard
Oil OWNED on Saturday, and of $3OOO0,OO0
subscription rights to New York Central
stock on Monday were said to be under
way today, requiring some large calling
of loans with resulting recovery in the
money rate
The long expected announcement of sub
scrption rights to new Great Northern
preferred stock and the quotation for the
rights In the outside market was followed
by violent decline in that stock which
chilled speculative enthusiasm over other
expected developments The increase in
the Pittsburg. Cincinnati. Chicago and
St Louis dividend was without influence.
The money markets were harder in Lon
DON Paris and Berlin today, but foreign
exchange rates here reacted in response
to our own stronger money market There
was considerable increase of selling pres
sure on stocks late in the day. and the
closing tone was easy at general declines.
Bonds were Irregular Total sales, par
value, $2,O92.O00
United States 2's advanced Is per cent
on call