The Birmingham age-herald., 1908-02-26
STOCK MARKET Is
 TIRED AND WEAK Activity of the Morning Is Fol-
 lowed By Stagnation TRADING IN JACK KNIVES"
Inconsistency of Traders Is Shown By nnEContradictory Opinions as to the PH Future Course of Stocks
 Under Pressure.

YeW Aork, February 2o.--The neglected Endition of the stock market was unre- keved today. Rather. after temporary sTincrease of activity in the morning, it was aggravated in the later dealings. Busi~ ness originated almost entirely within the walls of the stock exchange. An example of the character of the transactions and of the lack of consistency in the traders arguments was offered in Union Pacific. The books of that company for transfers of stock close tomorrow and consequently the 21a 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 21a points from the price tomorrow will make it look cheap and invite demand. The party sold 1t on the ground that the shorts had beer covering in the stock because they would be obliged to pay the amount of dividend in carrying charges tomorrow but would be prepared to put out fresh short lines when the dividend is deducted. The pro- fessional traders = themselves designate such a market as trading jack knives as they deliver as little profit from it as school boys engaged in that transaction. \ The bear party amongst the traders tested the market with short sales. at the outset on the assumption that the treas ury calls upon the national banks. except those of the smaller class for return of Ss5, 900 of government deposits during March might prompt some liquidation of stocks. This call has been clearly ind!- cated by the downward course of the mar gin of the government free working bal ance of cash. Moreover the money sup plies are now so considerable that the banks can part with this sum without em- barrassment while the treasury will be cor respondingly strengthened in it's facilities to help with relief for the money market when cash begins to leave the reserve centers to move the crops. The rapid re- trement of bank notes confirms the need of contraction in the circulation, deposits Of lawful money for that purpose at the treasury having already exceeded $9,O00,- coo for February, although that figure was fixed as the new limit for retirement in any one month by the amended law Of last winter. These returns of treasury de- posits and retirement of bank notes help to explain the moderate degree in which cash has been accumulated in the central banking reserves since the panic passed and also the absence of any refiux move ment of gold exports. Other reasons, how ever, are dscernible.
 The beginning of weekly statements of condition by the New York trust com panies involved a heavy accumulation of cash reserves by those institutions which made an important requirement. It is evl- dent also that neither the banks outside the reserve cities nor the banks in re- serve cities are inclined to place as large a proportion of their reserves on deposit with the central reserve banks as was done before last October and as is still permitted by the national banking laws. Incoming reports of condition of banks on February 14, in response to the call of Comptroller Shaw that prices are being maintained at a high point. Public dis cussion of the desirablity of raising the requirement. for actual cash reserves in banks outside the central reserve cities doubtless has it's influence in this stua- tion. Port earnings, fear of incoming dividend reduction and an injunction against the distribution of divt- dend already declared were specific causes for weakness in individual stocks today. Repurchases were made of stocks sold short and the days changes in prices are of no consequence.
 Bonds were easy. Erie General Four's broke points to 55. Total sales par value, $3,53s.oOO.
 United States As advanced E per cent. on call.