The Birmingham age-herald., 1907-12-12
STOCKS REBOUND
 AFTER DECLINE Market Shows Weakness Early With GeOd Recovery CONFIDENCE NOT INJURED Leading Financiers Are Watching the Market and Are Urging Caution In
 Trading To Prevent Too
 Rapid Rise or Fall.
CONFIDENCE NOT INJURED

New York, December 1.-The withdraw al of effective support for prices, except in spotty, irregular fashion, and the dull yielding today, were the reflection of dis appointment at the tardiness with which the dislocation of financial affairs is work ing toward correction. It is clear that speculative party which started the ad- vance in prices in order to hold them over to the end of the year counted upon the initiation before that time of the refiux of cash reserves into the largest banking eenters and a relaxation of the stringency in all departments of the money market, which is a consequence. Confidence is so unimpaired that, at q given stage with restoration of credits, there will be sud- den and heavy reflux into bank reserves and something like redundancy of sup= plies in the credit markets.
 The impression has taken hold of the speculative element in the stock market, however, that miscalculation has been made of the period of arrival of these con ditions and revised anticipations are dis posed to put it forward beyond the turn of the year. The tone of admonition of some of the banks to speculative borrow CTS and the running up of the call money rate this week carry the unmistakable ln- timation of heavy deficit below the lc- gal reserve requirement. still existing for the clearing house banks, with the per sistence of the premium on currency in New York and the continuance of ship Inents of currency to interior banking cen- ters, to say nothing of an unascertained volume of clearing house certificates to be reckoned in the New York position.
 It is borne in upon the minds of the spectators that present anticipation of existing conditions to come might prove premature. This idea is strengthened by the contemplation of the large require ments to be met before the end of the year for maturing mercantile paper and for which markets must be found to in Sure keeping adoat commercial enter prises. It is to be remembered that the increment of cash reserves achieved by the New York clearing house banks last week reported a balance of receipts of foreign gold over further large shipments to the interior and that these shipments are going on in spite of the apparent strength of interior banks exhibited in the reports to the Comptroller of the Curren- cy of reserves December ,. To keep open this source of replenishment involves a strain on,foreign money centers and the threat of this is arousng some disquie- tude there. The general position is re- garded as delicate, and it's passing period will be greeted with relief in all mar l-ets. The approach of the years end, too, gives rise to discussion of various ex- tended reorganization, and both organize bank and influential stock exchange firms and denials of many of these reports do not entirely deprive them of an influence on market sentiment Such topics are &C., countabe for the special weakness shown in some individual stocks. which in turn are sympathetic influence on the general list Estate settlements and probable div idend prospects are other potent influences on special stocks.
 A dull recovery set in after midday CO., incident with decline in the call money market which culminated in a brisk rise In the last hour. Except in extreme cases, the early losses were recovered and most of the favored stocks were quoted ma teriaIly above yesterdays closing. Short covering in American Smelling was a fea- ttire but there was also strength shown by Reading, St. Paul. the Hill stocks,