The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-09
UNEASINESS OVER
MONEY OUTLOOK
Pressure TO Sell Union Pacific
Another Influence
STOCKS ARE REACTIONARY
Banking Resources Too scanty for
Speculative Activity-Dispositlon
of Leaders to Place Funds
In Time Loans.
STOCKS ARE REACTIONARY

New York, January S.-The stock mar
ket became sharply reaetionary today
and speculative sentiment underwent a
marked alteration. Various factors con-
tributed to the result including several
rumors of which the failure of confirma-
ton pointed to a bearish origin. The
principal influences on the decline were
the recurrence of uneasiness over the
money outlook and the dsquieting ef-
feet of the obvious pressure to sell Union
Pacific. The tone of the money market
was firm from the outset, following the
furry in the rate to 10 per cent late
yesterday and it became evident that
the existing banking resources were toe
scanty to allow a resumption of specula-
tive activity on large scale. The bank
statement of Saturday leaves no ground
for surprise that the money market
should still be in a sensitive condition.
The added scarcity of call loan funds
Is partly due to the increased demands
of the speculative revival.
1t is partly attributable also to a dis
position on the part of the leaders to
place their funds in time loans rather
than on CALL This had helped to the easier
tone of time loans in the last few days
The movement is evidently based on the
supposition that time loans are not like
~ to hold at present rates. The dis
position of speculative borrowers to de-
pend on call loans, even at a higher
level which may be short lived is based
on the same assumption. The announce
ment of the purchase of S25, 900 of g.
year B per cent notes of the American
Telephone and Telegraph company re-
called to the attention of the financial
world the fact that large capital re-
auirements still remain to be supplied
me example was of added force owing
10 the underwriting last spring of $780,
0o0,O00 convertible bond issue of this COM
pany on which installments payable from
time to time should supply large resources
on hand. The resort to a note issue un-
der the circumstances is regarded as
significant of the unfavorable conditions
Tor absorption of any new capital offer
ings in the market
The downward course of the Landau
discount rate also halted today and the
prospect of a S5000,000 shipment of gold
from London to Brazil was a disturbing
factor in that market. The conspicuous
weakness of Union Pacific aroused a
FEELING of uneasiness that more was
looked Tor from the interstate commerce
commissions investigation than has been
allowed to be understood and that i'm
portant holdings were being reduced on
that account.
The continued absence from his office
or the head of the system also gave rise
10 rumors of more serious disability than
has been publicly admitted. The later ru-
NOR that j. p. Morgan was ill, apparent
~ resulted from suggestion of the for
lner rumor. Some special weakness in
the Morgan stocks gave force to the
rumor that for a time until many in
quiers at the office of the fnancier
brought disclaimers of the reports.
southern railway ran off sharply and
II was supposed that liquidation for ac-
count of an estate of a late dominant
inquire in the company was responsible
United States steel was also heavily sold
The announcement that the New York
central would repay the dividend paw
able ON January Is on Thursday of this
week was a promise of q modifying in
1iuence on the firmness of the money
market but it was also regarded as n
testimony of the necessity 1elt for meas
ures to conserve the ease of the money
market Suhrtreasury operations have
Yielded sl,S7l,000 to the banks since tbe
bank statement was compiled There was
some covering by shorts at the declines
which were quite severe. but there was M
effective rally, and the market closed
irregular
Bonds were irregular. Total sales. mar
value, s1,s66,000.
United States bonds were unchanged
on call