Los Angeles herald., 1907-12-11
WALL STREET
S7OCKSD
SUPPORT is WITHDRAWN FROM
MARKET
Hill Railroad and Reading Securities
Experience Sharp DecIine-CaIl
Money Rate Goes
Higher
BY Associated Fress.

NEW YORK, Dec. 10.-The support for the
market which has been persistent for some
time past abandoned today, but whether
voluntarily or forcibly was not clear There
was further calling of loans by the banks fol-
lowing that of yesterday and the call money
rate was run up to 25 per cent. compared with
a maximum rate of 20 per cent yesterday. This
mad bad effect on speculative sentiment, but
the force of the depression was more direct
than through effect on sentiment.
The selling converged especially on the Hill
stocks and Reading and as these had been
picked for the most conspicuous operations
in supporting the advance their sudden relapse
was of marked sympathetic effect on the whole
market. Some relative resistance was shown
by the coppers which might be accounted for
by the large short interests in the stocks wait
ing to cover on the decline. There was some
evidence also of direct transfer Of large ac-
counts from the Hill stocks into the Hartman
Pecifcs
The motive for the withdrawal of call loans
credits by the banks were not clearly under
stood, and were perhaps Of added unfavorabie
effect for that reason.
The publication in detail of the reports of
the New York city national banks in response
to the call of the comptroller of the currency
revealed so heavy an impairment OF resources,
In the case of one or two in which pressure
was especially severe. that a bad impression
was caused, although the present solvency of
those banks was not thrown open to any doubt
Reports Of negotiations on foot for strength
ening consolidating those institutions in
creased the attention given to the subject.
1t was surmised Furthermore that call from
the state banking department for reports of
condition of the state banks and trust COM
panes in consideration. and this would
nearly have the effect of prompting some
strengthening of position by those institutions.
The complied digest of the showing of the
Rev York city national banks was held TO
confirm the claim OF the large resources sup
piled by the New York banks to the interior
during the period of strain or the total in
crease in deposits shown December COM
pared with August % of s76. 1858 there is in
cluded an increase of some SAG, 6,S53500 in gov
ernment deposits in the clearing house banks,
while items due to banks" etc, there was a
decrease of $26, 6,240,535. Specie and legal tender
also have actually fallen s6.2ss,369, in spite of
the enormous inflow of Imported gold and the
lprge sums of cash transferred from the treas
ury department to New York bank vaults.
With this exhibit of the heavy drain on New
York which the interior demand has made,
financial sentiment is sensitive to the large
continuance of that drain shown in the per-
sistent heavy transfers which being made
to interior points.
This demand Is keeping up the premium on
currency and was given part of the respons-
bity for the active calling of loans by the
banks today. The publication of the reports
of national banks by cities as they were re-
ceived at the office of the comptroller of the
currency is demonstrating the fact that the
condition of heav.' cash reserves through the
interior is not universal. although general
condition OF strength was indicated by first re-
ports from unofficial sources
Bonds were easy. Total sales par value,
$4,000, 900. U. S. bends were unchanged call,