The morning journal-courier., 1907-12-28

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 heavily short of were New York
 al, Missouri Pacific. and Sugar
 fling. The latter did not sell off
 h. Before the end of the first hour
 as clear that very little long stock
 been shaken out, while on the oth-
 and the short interest had been in-
 lsed
 American stocks in London were IT. gular with small fractional declines tedominating. The Bank of England g discount rate remained unchanged at ( per cent. The banks proportion of re- serve to liabilities is now 39.99 per cent, against 45.9O per cent last week. and S712 this week last year.
 Before midday sharp recovery was under way, under the lead of Union Pacific, the Hill stocks, and Reading and the rally was carried well into the afternoon, some of the gains being M points. The stocks which had been httacked, both Thursday and yester- gday, made up q. great deal of lost ground. The bear campaign had been suspended for the time being, and cov- ering of shorts was the chief concern, A The volume of business during the first E half of the day was more than twice as large as Thursday, being 2aS,o0O I shares during tho first two hours yes- ! terday, as against 106,O00 Thursday With the reduction of the currency premium in the afternoon to nominal figures, sales being made at as low as 1-4 per cent, the stock market ruled very strong, touching the highest prices of the day in the last hour In some cases bankers v~-llG had been buy
 E9N ssef9filg currency declared that
 M was practically no further pre-
 Nn worth mentioning, and the end
 the premiums is virtually in sight.
 When stocks turned square round and suddenly became strong before midday. there was much discussion as. to the cause, It was suggested by good many that various interests might desire to do some 'window-dressng at the end of the year, when they ara called on to make reports and the value of their assets is improved or diminished by the level of the stock market Some credence was lent to this theory by the marking up of Penn sylvania, New York Central, and the granger stocks. These issues are held largely by corporations.
 The offer of Kuhn, Loeb & Co. to buy at par the sem-annual January coupon of all the Third Avenue Rail road eompany's 4 per cent. bonds was much talked of. It is, perhaps, not generally known that the coupons have no priority right over the bonds which makes the bankers offer so much the more liberal Whens they placed them the bonds were considered by the best judges to be an investment security l of the first rank and they were bought by big institutions and small investors alike in perfect confidence. Messrs Kuhn, Loeb X Co.'S offer will be es- peciaily gratifying to the latter, who might otherwise be seriously inconven- fenced by the non-payment of the cou- 55nss
 The bear party, having apparently lone it's worst to New York Central, Is now centralizing its attack on Pennsyl' yania, in which the short interest, it k lhelieved has been considerably increas led The bears are hoping to make : "killing in that stock before the enc of the year The stock was well bough by Halsted & Hodges
 The early weakness of Great Nor. h thern and Northern Pacific wa thought to involve the final clearing ul of a weak account, which has been il process of liquidation for severa weeks In this connection reports l-- were, current that one or more inter ests would retire from business at th' end of the year. Later these stock rallied sharply
 American Locomotive common wa very weak for time, without any sat Iisfactory explanation. It possibl. meant the winding up of accounts, pre- paratory to end-of-theyear settle ments, which often involve the closinl out of collateral carried in loans,
 The steamship Adriatic, which arrlv yesterday, had on board $5sO,0OO gold of which s200,O00 was consigned to tn National City Bank, and $SsO,oeO t Lazard Freres, This brings the tota gold arrivals since the present move ment began to ss1,655,097
 Tn the third hour the market wa moderately active and strong Trans D actions to 1 o'clock were S11,174 shares Additional gains were made all alon the line in the fourth hour, the mor ! important stocks showing extreme ad vances of 2 to 8 1-2, the latter in Nor thern Pacific. Transactions to ? o'cloc were SSS13s shares.
 The market continued active an