The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-01
PINCH IN MONEY ON
LAST DAY OF YEAR
Persistent Rumors of Financial
Embarrassment Heard
READING VARIES WIDELY
Pronounced Pressure on Hill Stocks Is
Noted and to a Less Extent on
ST. Paul and Union
Pacific.
READING VARIES WIDELY

New York, December 31.-The last day
of the year did not pass without pinch
In the money market. and there was
a contsarint on the market. But more in
fuence on sentiment was caused by the
persistent rumors of financial embarrass-
ment growing out of stock market
losses.
Before the day was over it was made
TO be understood that arrangements had
been concluded to avoid the threatened
embarrassment The relief to speculative
sentiment was manifest, and the tone of
depression in the market largely disap-
peared The recovefies which followed
were more matter of price readjustment
than a response to any large transact
lions. There were some very wide fuetua-
tions in Reading in the opening deal
ings, successive transactions being made
at variations of a point. and even ~
points, a very unusual fiuctuation for
an active stock in large volume in the
market. There was pronounced pressure
also on the Hill stocks. and to less ex-
tent ON st. Paul and onion Pacific.
The wide declines in the Hill stocks
since the new issues of stock were an
nounced have involved some severe spec
ulative losses, and the amount & these
stocks held on margin proved much larger
than was suspected. The severe shrinkage
in their market value placed some ac-
counts in a precarious situation. The
existence of a vulnerable position was
suggested by the unexplained liquidation
of the latter part of last week. A long
rfA
change clearing house sheets today added
to the anxiety, and there was continued
uneasiness and nervousness in the early
trading. The sharp rally in the market
came without any official announcement
of steps taken, but was accepted as
proclamation of a satisfactory settlement
of difficulties. The gloomy and depress-
ing weather was allowed its share of in
f1uence in the mood of tie speculation.
The atmosphere of the market was not
a cheerful one for the approach of the
new year The market has to take some
share of selling that simply represented
closing out of accounts for the year.
st. Paul subscribers to new stock Lad
to make a 10 per cent payment today,
ar / this added to the burden of the prep
arations for the enormous payments of
the new year.
The hope of a prompt relaxation in
the money market at the turn of the
year is clouded by some of the possible
compiled tons Advices from London in
dictate the continued solicitude with which
that center would regard any withdrawal
of gold for New York account after
the turn of the year London is under
obligation to return to Paris the re-
sources advanced to tide over the annual
settlements. A heavy demand for gold
for Brazilian account also is to be faced
In our own market also it is recalled
that the last deposit of $10.00O000 of treas
ury funds was fixed for return on jan
uary 20 for half the amount, and for
February / for the remainder The $685.
900 900 deposited late in September. also
was with the Initiation that demand for
its recall would be made when currency
began to return from the interior in the
spring Installments on subscription to
new stock issues will make heavy demand
from time to time on future money mar
kets
The question of working towards ease
In the money marlat, therefore, re-
manned somewhat obscure. Time money
was again easier today. and sterling ex-
change was strong. The more cheerful
of the later stock market was main
ID and the closing tone was strong
at the best points of the day.
nds were heavy. Total sales. par
e. 81. 10, 600. United States bonds were
ranged on call.