The Birmingham age-herald., 1907-12-11
DOWNWARD TREND
 IN STOCK MARKET Support Is Abandoned Without
 Apparent Cause CALL MONEY GOES HIGHER Reports of New York City Banks Show an Impairment of Reserves Which Impels Bankers To Postpone
 Cash Payments.
CALL MONEY GOES HIGHER

New York, December 1O.-The support the market, which has been persisted in for some time past, was evidently abandoned today, but whether voluntari- ly or forcibly, was not clear There was further calling of loans, the banks fol- lowing that of yesterday and the call money rate was run up to p per cent compared with a maximum rate of 20 De, cent yesterday This had bad ef- feet on speculative sentiment but the force of the depression was more direct than through effect on sentiment. The selling converged especially on the Hill stocks and Reading, and both stocks had been picked out for the most conspic- uous operations in supporting the ad- vance, their sudden relapse was of marked sympathetic effect on the whole market. Some relative resistance was shown by the Coppers, which might be accounted for by the large short interest in those stocks, waiting to cover on the decline There was some evidence also of direct transfer of large accounts from the Hill stocks into the Hartman Pa cihcs. The motives for the withdrawal of call loan credits by the banks were not clearly understood and were per haps of added unfavorable effect for that reason.
 The publication in detail of the reports of the New York city national banks in response to the call of the comptrol- Ter of the currency revealed so heavy an Impairment of resources in the case of one or two on which pressure was espe- cially severe, that bad impression was caused, although the present solvency of these banks was not thrown open to doubt. Reports of negotiations on fls4 for strengthening or consolidating these institutions increased the attention given to the subject. It was surmised furthermore that call from the state banking department for reports of con- dition of the state banks and trust com- panies was in contemplation and this would naturally have the effect of prompting some strengthening of position by those institutions.
 The compiled digest of the showing of the New York city national banks was held to confirm the claim of the large resources supplied by the New York banks to the interior during the period of strain. Of the total increase in de- posits shown on December g. compared With August 22, of $76.115963, there is, including an increase of some $46So3,O00 in government deposits in the clearing house banks, while in the items due to banks, etc." there was a decrease of $26 240 535. Specie and legal tenders also have actually fallen 369, in spite of the enormous flow of imported gold, and the largest sums of cash transferred from the treasury department to New York bank vaults. With this exhibit Of the heavy drain on New York, which the interior demand has made, financial sentt- ment is sensitive to the large continuance of that drain shown in the persistent heavy transfers which are being made to interior points. This demand is keeping up the premium on currency and was given part responsibility for the actiVe calling of loans by the New York banks today. The publication of the reports or national banks by cities as they are re-