The Montgomery advertiser., 1908-02-26
THE STOCK MARKET

New York. Feb. 2s.---The neglected condition of the stock market was un- relieved today. Rather after a tenn porary increase Of activity in the dealings Business originated almost entirely withi nthe walls of the stock exchange. An example of the charac- ter of the transactions and of the lack ments was oiYered in in Union pacific. The books Of that company for trans fers of stock close tomorrow and con- seauentiy the value of the ? l72 per cent dividend will be deducted from the price of the stock. One party of traders bought the stock on the ground that the deduction of 1-2 points from the price tomorrow will make. .it look cheap and invite demand. Another party sold # on the ground that the shorts had been covering in the stocks because they would be obliged to pay the amount of dividend In carrying charges tomorrow but would be pre- pared to put out fresh short lines when the dividend is deducted. The profess sional traders themselves designate such a market as trading jack knives" &s they derive as little profit from 1t as school boys engaged In that trans
 The bear party amongst the traders tested the market with short sales at the outset on the assumption that the treasury calls upon the national banks
 
 raturn of s35,oo0.000 of government de- posits during March might prompt some liquidation of stocks. This call has been clearly indicated by the downward course of the margin of the governments free working balance of cash. Moreover, the money supplies are now so considerable that the banks can part with this sum without em- barrassment while the treasury will ba correspondingly strengthened in its facilities to help with relief for the money market when cash begins to leave the reserve centers to move the crops. The rapid retirement of bank notes, confirms the need of contrac- tion in the circulation.' deposits of law fui money for that purpose at the treasury having already exceeded $9.- ooO0oO for February. although that ngure was fixed as the new limit for refinement Tn any one month by the amended law of last winter. These returns Of treasury deposits and re- tirement of bank notes help to explain the moderate degree in which cash has been accumulated in the Central bank ing reserves since the panic passed, and also the absence of any feflux movement of gold exports. Other req sons. sons however, are discernible The condition by the New York trust com paIfies involved heavy accumulation oi cash reserves by those Institutions which made an important requirement. ON-NCAhtss tNdl HelLneT the banks outside the reserve cities nor the banks in reserve cities are in- clined to plsce as large a proportion ok their reserves on deposit. with the central reserve banks as was done be- fore last October and as Is stifl permit ted by the national banking law In- coming reports of condition of banks on February f4 in response to the call Of the comptroller. show that reserves are being maintained at a high point. Public and legislative discussion of the desirahllity of raising the requirement. for ac.Isl cash reserves in banks out side the. central reserve cities doubt less has its Influence on this situation. Poor net earnings, fears of coming div. idend reduction and an injunction against the distribution of dividend alreacg declared. were specific causes For weakness in Individual stocks to- day. Re-purchasss were made of stocks sold short and the days changes in prices are 1s no consequence
 Bonds were easy. Erie general As broke points to 55. Total sales. par value. sS.53S,o00. U. S. 4s advanced I-2 per cent on call.
 CLOSING sToCK LIST.