The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-02-10
STOCK MARKET HAS
VERY HEAVY TONE
Bank Statement Had Decidedly
Weakening Effect
BAD AUGURY FOR ADVANCE
Decrease of s12,ooo,ooo In Cash Hold
ings of Banks Is Difficult to Trace
to Any Known Destination.
Call Money Hardening.

New York, February 9.--The stock mar
ket showed heavy tone from the out
set today, and weakened decidedly after
the appearance of the bank statement.
This early check to the recovery which
set in after the middle of the week was
accepted as a bad augury for the renew
al of the advance and as evidence that
covering by over-extended shorts had
been principally responsible for the rally.
The decrease of over $12OOO,0OO in the
cash holdings of the bank is difficult
to trace to any known destination. The
known movements of currency since the
last bank statement accounted for about
SSOO0,0OO. 1t is probable that the SUBJ
treasurys withdrawal of government de-
posits late last week figured in this week $
averages of the banks. instead of last
weeks, but a large discrepancy would
still remain to be accounted for.
The loan expansion on the other hand
failed to show the expected effect of the
large financial transactions of the week.
] in the payment of New York city bond
subscriptions, and the taking up of a
number of. railroad note issues
The hardening of the call money mar
iket yesterday is sufficiently explained by
Ithe showing of the banks. The time money
market today was reported firm and I'M
usually active for a Saturday in SYM
pathy with the rise in call loan rates.
Sterling exchange rates were not affected
today. Discounts in London rose today.
Foreign takings of the note issues be-
i ing made by the railroad companies arc
Establishing foreign credits for lew York
account and New Yorks ability to draw
gold at this time is counted on. The
market closed weak and at a considerable
decline, Total sales of bonds, par value,
2S706 900.
The stock market this week has been
relieved from the selling pressure of the
urgent kind which carried prices rapid
lily downwards last week. There have been
Ispots in the market here and there due
i either to belated liquidation or weakened
Speculative accounts, or to attack by the
/ bear party in the effort to renew the
=fall in the market generally. These weak
.spots kept the tone of the market UNI
Isettled for the greater part of the week,
land prices moved sMggishly and irregu-
Harry. The market, however, was without
Notable changes in the condition of af-
fairs, and represented more a readjust-
|ment to the liquidation which has been
detected. large reduction has been made
lin the speculation of the long side which
has become vulnerable by the locals Tor
additional margins and other coHse-
ctlences which follow a downward course
Iof prices Not only in this market, pul
I'm London also, there is known TO nave
|been extensive liquidation of specula tive
Iaccounts in Americans. With the check
Ito the decline and the turn in the mar
Iket there has grown up more cheeilui
|feeling over the general outlook.
| A feature Of the market was the de-
|xelonment of an Investment demand Tor
|rfocks which made itself manifest in the
|buving in small parcels. The stock eX-
|rhange authorities were prompted by TINS
development to resume the record oI
transactions in "odd lots" on the tape to
nnu,nlv with the desire of the clients of
1.-The brokers to follow the official record
of the execution of their, orders. Buying
nf this character is not an important eie-
mert in itself in affecting movement or
nrices. hut it is regarded always as highly
significant of the investors estimate OIL
true value 1t has been almost entirely
Hacking in the market for long time
at the higher level of prices. Inc easing
of the money market has helped in the re-
adjustment. Besides the Importance of the
Investment buying of stocks as a reflection
of financial Judgment on values, TINS
demand is of a more permanent charac-
Tor than the ordinary speculative opera
lions in the market, AID serves to reduce
the floating supply of securities and 10
effect a wider distribution. IT. is notable,
however. that the bond market has been
little affected by this apparent Increase IN
the supply of capital seeking investment.
Neither has the distaste for new securities
IN the market been modified the an
nouncement of an intended note issue by
a railroad company or rumors of such an
issue still serving to depress the stock of