The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-27
STOCKS FORCED To
NEW LOW LEVEL
Mystery of Selling Source At
fects Speculative Sentiment
BEARS HAMMER ON RALLIES
Weak Showing of Banks Revealed BY
Statement-Loan increase Attrlb-
uted to Taking Up Railroad
Notes-Weeks Review.

New York. January 26-The stock mar
ket was subjected to severe pressure
again today, and the fall in prices added
to yesterdays decline, forced level gen.
orally lower than that of the low level
of Friday of last week. The mystery of
the sources and the motives of the selling
Increased its effect on speculative senti-
ment. The tendency of the market to rally
from time to time discussed that short
selling by bears had share In the re-
sponsibility for the weakness
The most pronounced of these rallies
came after the appearance of the bank
statement. notwithstanding the weak
showing of the banks. Only = ,246, 400 of
the expected 100000 cash gain appeared,
and the s220OO,0O0 loan expansion swelled
the deposit item and reserve require
ments to an extent which reduced the
surplus s2.S97,sOO to $155e2.sOO. which COM
pares with a surplus of s15,S2s,S50 at this
time last year.
The loan increase was attributed largely
70 the taking up of railroad note issues,
10 which were added today 100000 of
ten-year notes by the Vanderbilt railroad
companies. Reports from the bankers
fhaving in hand the sale of these notes of
the eagerness with which they were
bought, and the higher relative prices
they were bringing, compared with re-
cent issues, had an influence on the stock
market as a possible indication of a re-
lease of carltal for investment from the
|tied up condition which has threatened
scheck to enterprise. The report from
Washington that the intended recall of
government deposits from the national
banks on February afterwards was to
apply only on the 1921 900 deposited in
December, and not to the $4,000 600 which
has been on deposit since last September,
|quieted an apprehension felt yesterday of
severe pressure during February on the
money market from that cause.
The market did not fully hold its rally
and the closing tone was irregular. Total
sales of bonds, par value, slO36,000.
The stock market has righted itself
week from the stress of the urgent liqui-
dation that disturbed it last week. and
has made some moderate recovery. There
has been a progressive shrinlzage in the
activity of the dealings, and a sluggish
. and hesitating movement of prices which
argued an uncertain state of speculative
sentiment, and an attitude on the part
| of operators of waiting for a new initia-
tive in the course of prices.
Opinions have been numerous over the
probably future course of the market,
and as &c the significance of the recent
events in the trading, the sources and
motives of last weeks sharp liquida-
ton. The probability of its continuance
] and its bearing on general conditions of
\ the country have been the subject of
varied comment in the financial district
without definite conclusion or agreement
Large buying which served to arrest the
decline was attributed to banking inter-
ests, reinforced by the demand from UNI
covered shorts when the downward course
OF the market was seen to be- checked
I The after effects of such buying is usually
To weaken the technical condition of the
market. The covering of shorts removes
a reserve force of demand. and buying
of stocks by large interests merely for the
purpose of supporting prices, and to pro-
tect the margins, which is commonly fol-
|llowed by resale of much of the hold
Kings thus acquired at the first opportun-
lily. On the other hand. such course of
liquidation such that of last week re-
moves a large number of vulnerable spec
ulative accounts. 1t is the general suppo-
sition that the reduction of business ac-
counts was made in accordance with the
desire of lenders of money which had
[ been loaned in many cases with the stip-
ulation that the relaxation in the money
market following the turn of the year