The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-18
HANDFUL OF STOCKS
DEPRESS MARKET
General List Weak and Res
pended to Weakness
INCONSISTENT MOVEMENT
Syndicate Which underworld Last Erie
Issue Convertible Bonds Has Been
pssolved-speciaI Causes At
fectine Stocks Suffering.

NEW YORK. Jan. 1.-THE dull and
heavy tone which prevailed for most CT
the day in the stock market seemed to
be due to sympathy with the continued
weakness in a handful of stocks There
was nothing like the general weakness
which developed yesterday at any time
during the day.
The general list moved narrowly
throughout There was a dip among the
whole line when any special weakness
would develop at some special point,
and an appearance of resiliency in the
intervals of liquidation in a few stocks.
The hesitating and inconsistent move
ment of the market kept sentiment much
confused. During the course of the days
trading a clearer perception was acquired
of the limits of the selling and feeling
regarding its significance became better
defined. The fact became known today
that a syndicate has been dissolved
which underworld the last issue OF Erie
convertible bonds. Official details OF the
transaction are lacking, but 1t was gem
orally believed that the largest part Of
the issue had proved unsaleable. inc
outcome of the underwriting is a re-
enforcement of the lesson of other ex-
amples, and its effect is enhanced by the
knowledge that similar conditions exist In
the case of other syndicates.
In order to move the market for such
holdings, 1t seems necessary to make
large concessions in prices. A like course
is indicated as necessary in the securities
overhanding the market to secure new
capital to proceed with the great enlarge
ment of railroad facilities which railroad
authorities seem agreed in considering e5-
sential to cope with the present business
of the country. But the belief gained
ground today that there was special
causes affecting the stocks which suffered
most acutely in yesterdays Decline hav-
ing to do more with the speculative po-
sition in the market than with the finan-
cial affairs of the companies.
Yesterdays sinister inference of an in
ception of a stock market struggle be-
tween financial giants, gave place today
to an alternative belief that crippled
speculative accounts of smaller import
ance were involved.
Aside from these special incidents in
the market developments were favorable
The reduction in the Bank of England
rate of discount was a decisive mark Of
the relaxed tension of the worlds money
market The weekly statement of the
Bank of England showed clearly that
the action of the governors had become
necessary to conserve the volume of bust
ness which is a main object of the eX-
istence of the bank. The Bank of France
and the Imperial Bank of Germany also
showed the reflex movement of cash into
bank reserves. In this market the rate
for time loans for all periods yielded to
below per cent for the first time since
the recent stringency prevailed. The
banks continued to gain heavily from the
sub-treasury the amount for the weeks
statement rising by today's statement to
SS.714,000.
The action of Ahalgamated copper FOR
several days past has indicated the yield
ing of earlier speculative hopes of an in
crease in the dividend rate. There was
consequently only a momentary dip in
stocks when the rate was announced as
unchanged Constant fluctuations marked
the trading until the end of the day
and the closing tone was irregular.
Bonds were irregular Total sales, par
value, S1,s94000.