Los Angeles herald., 1907-01-01
Ry Associated Press.

NEW YORK, Dec. 31.-The last day
of the year did not pass without a pinch
in the money, market and this was q
constraint upon the stock market but
more influence on sentiment was caused
by the persistent rumors of financial
embarrassment growing out of stock
market losses. Before the day was over
il was made to be understood that ar
rangements had been concluded to avoid
the threatened embarrassment. The
relief to speculative sentiment was
manifested and the tone of depression
in the market largely disappeared. The
recoveries which followed were more a
matter of price readjustment than re-
Sponse to any large transactions.
There were some wild fluctuations in
Reading in the opening dealings, sue
cessive transactions being made at
variations of point and even II
points, very unusual fluctuation for an
active stock in large volume in the mar
ket There was pronounced pressure
also on the Hill stocks and to less
extent on st. Paul and Union Pacific
The wide declines in the Hill stocks
since the new issues of the stock were
announced to have involved some severe
speculative losses and the amount of
these stocks held on margin proved
much larger than was suspected. These
severe shrinkages in their market value
placed some accounts in precarlous
condition. The existence of a vulner-
able position was suggested by the un-
explained liquidation of the latter part
of last week long delay in the pass
ing of the stock exchange clearing
house sheets today added to the anxiety
and there was continued uneaSinesS and
nervousness in the early trading and
the sharp rally in the market came
without any official announcement of
steps taken. but was accepted as a
proclamation of a satisfactory settle
ment of difficulties The gloomy and
depressing weather was allowed its
share of influence in the mood of the
speculation.
The atmosphere was not a cheerful
one for the approach of the new year.
The market had to take some share of
selling that simply presented closing
out of accounts for the year.
st. Paul subscribers to new stock had
to make 1O-per-cent payment TO-DAY
and this added to the burden of the
preparations for the enormous payments
of the new year. The hope of a prompt
relaxation in the money market after
the turn of the year is clouded by some
of the possible complications.
London is under obligation to return
to Paris the resources advanced to tide
over the annual settlements. A heavy
demand for gold for Brazilian account
also is to be faced. In our own market
it is also recalled that the deposit of
$10,000,000 of treasury funds was fixed
for return on January 20 for half the
amount The S26000,000 deposited late
in September also was with the intima-
tion that demand for it's recall could be
made when currency began to return
from the interior III Jne spring. lnSldIl
ments on subscription to New York
issues will make heavy demand from
time to time on future money markets
The question of working towards ease
in the money market therefore remained
somewhat obscure.
Time money was again easier today
and sterling exchange was strong. The
more cheerful tone of the later stock
market was maintained and the closing
tone was strong and at the best prices
of the day.
Bonds were heavy. Total sales, par
value $1,722,00O.
United States bonds We're unchanged