The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-03
SETTLING TENDENCY
IN STOCK MARKET
Constraint of Trade Not Ex-
pIainabIe by Developments
CAUTION NOTED IN REVIEWS
Wealth of Authority On Great Showing
of Year, But Hopeful Presage
Mixed With Admission of
Probable Reaction
CAUTION NOTED IN REVIEWS

New York, January 2-Stocks wavered
uncertainty today and showed tendency
to settle back to Mondays closing level.
The volume of business was on an insig-
niflcant scale. The constraint Of the spec
ulation was not explained by any immed-
fate developments, these being mostly ia
vorable. But the longer outlook was the
subject of much consideration, and of
greatly mixed Interpretation
There was wealth of authority in EVIL
dence in the annual reviews on the great
showing of the year just past, but there
was in all of these a rather surprising
unison in the note of caution mingled with
even the most hopeful presages, and from
that ranging downward in the scale of OPP
timism to an admission of probable early
commercial reaction and depression. This
had Its effect on stock market sentiment.
The future of the money market also
seemed far from clear in spite of the
prompt relaxation which was manifest to-
day in this market, and in foreign mar
kets as well. Berlin discount rates eased
In way to give gratifying evidence of
the successful passing of the year-end
crisis in that market which was especial
ly dreaded London discounts ran off in a
pronounced way. The early 20 per cent
rate for call loans here was not held long,
The huge volume of the clearing house
exchanges was witness to the important
progress already made on Monday in dis
posing of the annual requirements. Con-
ditions seemed tending quickly, therefore,
towards the money relaxation which has
! been relied upon to relieve stock market
Alethargy
A modifying factor which must be reck-
oped with is the course of the treasury
operations in the future, and which were
especially dwet upon in the January cir
cular of the National City bank.
Provision is already implied for the re-
turn of $l000,000 of government deposits
held by the banks half on January 20
and half on February l, and the latter
date was intimated as the period for be-
ginning the return of 900 of deposits
made with the banks in September last.
The circular estimates that excess OF
government revenues over payments be-
tween now and January 30 will amount to
$4,000. 600 additional The opinion is ex-
pressed tn money rates will be sus-
tanned by these causes up to the time Of
the maturity of the $l15e00000 of 4 per
cent bonds when the outlook will be af
fected by the alternative of redemption of
the whole issue, or of partial refunding.
Meantime prepayment has been made Of
ali the government interest falling due
up to and-includirg May l.
A striking feature Of the days fnan-
ciar markets was the violent advance in
the fef efgn exchange MARKET. The demand
for remittances seemed urgent in spite
OF the easing of money markets abroad
1t was inferred that obligations which
we're deferred during the stringency in
money here were being covered on a large
scale. The, price of demand sterling rose
fully . cents in the pound over that Of