The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-19
STOCK WEAKNESS IS
GENERAL AND ACUTE
Bearish Sentiment Ends in
Clouds of Depression
BOLD ATTACK NEW PARTY
United States Steel and Union Pacific
Regarded as Port Arthur of Market
and Strategy of Bears Directed
Against These Securities.

New York, January 1s.-Clouds of de-
preston gathered over the stock market
tpt.iv ana the weakness which has been
spottv and Intermittent hitherto became
general acute This was a result
rather of a capitalization of sentiment
on current topics of discussion than any
important fnancier in the situation. More
over, 1t became very evident that large
activities were traceable to a profess
sional party of operators on the bear
side OF the market This party showed
every evidence of skillful organization,
and aggressive leadership, and there was
a general disposition to attribute its gem
eralship to veteran operator whose
activities have been dormant for con-
siderable period so far as public informa-
ton has followed them.
The bold methods pursued by the new
ly organized party is shown by the wide
spread proclamation made before the
opening of trading of the plans for the
day, including special pressure to be d.
rected against United States Steel and
Union Pacific. It was candidly explained,
moreover, that this plan of strategy was
intended to be directed against what
seemed to be the Port Arthur of the
market with view to securing the key
to the position. This fgurative explana-
ton is based on, the comparative firm-
ness With which those stocks have resist
ed the pronounced weakness heretofore,
and the sympathetic effect this has had
in sustaining the general market while
professional short selling was clearly
traceable in the days market and the
vulnerabliity of values, confirmed the
views of the bears and proved the ex-
lstence of the position on which they based
the attack.
Instead of encountering opposition or
any effective support for securities at
tached, the fall in prices intensified the
pressure of the liquidation and gave
much of it the appearance of urgency,
which always give currency to humors
of financial stress about the stock ex-
change.
The estimates of the weeks currency
movement emphasized the growing ease
of the money situation with an Indicated
cash gain of S14,OOOOO0. But sentiment
in the stock market Is formed to the
belief that the accumulation of money
resources at this time is not to- be for
the benefit of market speculation, but
is likely to be bespoken fast as avail
able to take care of the enormous issues
of new capital.
| The terms on which the new capital is
to be offered for subscription will assure
an attraction to privileged subscribers,
such as stockholders at least which Is
calculated to outweigh the advantages
offered by any of the securities now In
the open market This fact together with
the poor success of recent underwriting.
where such attractions were not SUM-
ciently inviting. and the high interest
rates the railroads are paying for tenn
| porarv resources on note issues to carry
. out the urgent work of Improvement s
accented as warning that the prevail
ing level of<values IN the market is too
| highly 10 compete With the new offerings
incoming from many CHARTERS
The course of tho foreign exchange
market also discouraged hope of any eff
fective relief for orr money necessities.
Yesterdays reduction in the Bank of
England discount rate was followed to-
day by hardening in the open market
! discount rate In London and move
ment of the International exchanges in
favor of London. This corroborates sup
position that the purpose of the Bank
of England in reducing the official dis
/ rount rate was to resume its control of
the open money market which had es-
. capped them. owing to the discrepancy in
| the private and official discount rates.
| r. borrowing from the Bank of Eng
effective there. and raise barrier
AGAINST the extension of credits to New
! York borrowers. The December foreign
trade statement published today showed
a decrease in the, excess, value of ex-
ports over imports of over $4,000 900, COM
| rared with the preceding December New
| York's control of the exchanges Is thus
shown to be much lessened Sterling ex-
change was strong here today
Stocks enjoyed one good rally In the
afternoon when shorts took profits and
reduced their lines, but another deter
mined drive against the market dislodged
heavy stop-loss orders and caused a
threatening slump in St Paul. the Har-
riman's. the Hills, Reading and Amalga-
mated Copper.
The closing was, in consequence, much
unsettled and feverishy active.
Bonds were irregular Total sales, par
value, $2477,OOO.
United States bonds unchanged on call.
Money on Call.
New York, January Money on call
Easy. sd31s per cent; ruling rate, 3; clos
Ing bid, g. offered a 3ls; time loans were
steady; sixty and ninety days, 81 per
cent: six months 51zd534.
Prime mercantile paper. 6M61a per cent;
sterling exchange steady. with actual bus
ress in bankers bills at 4s5 501 4s5 80 for