The Birmingham age-herald., 1908-12-12
SUDDEN DROP IN
 STOCK MARKET Heavy Gold Shipments Induce General Selling LOAN ITEMS EXPANDING Some Unified Requirements of the Market Due to the Campaign of
 Speculation Aids Weakness
 But Tone is Still Good.
LOAN ITEMS EXPANDING

5 New York, December 1.-The running of the gold engagements for shipment to France tomorrow to the sum of $3,900,00O took the edge off the speculative temper today and a cordial unloading of stocks resulted in the latter part of the day
 The loss of gold shipments was strength ened by the preliminary estimates of the weeks currency movement, from which 1t appeared that practically no gain on bal ances from the interior had occurred to offset the absorption of $5,93S,000 by the sub-treasury operations of the week. None of the gold taken for export has figured yet ill the sub-treasury operations, the effect, therefore, being deferred to next weeks bank statement rather than In the showing to be published tomorrow afternoon. The payments of subscriptions to the Panama canal bonds have not com menced to figure in the sub-treasury oper- ations, leaving another money requirement to be made. It is not unusual Tor the temporary accumulation of funds to pre- pare for the year-end disbursement to make some strain on the market and to involve the calling of loans. The ex- banding tendency of the loan items of inc banks is continuous. With the sur plus reserve of the banks last Saturday standing at but little over $20,000,000 there was presented this rapid summing up or requirements rate of inroad on that gum Wnlcn SuQueuly dppedISu SOliicWiot | prodigal The feeling that the E<>er- val to the easy money market of January could be bridged without spe- cial care in retrenchment of outlay was somewhat disturbed by this development and some nasty retlrements from stock commitments followed
 The small effect produced on the ex- change market by the gold engagements gave an impression of a still unified re- uuirement which indicated likelihood of the continuance of the gold outgo. 1t is supposed that the very heavy inflow from abroad of American securities at the high prices lately prevailing in the conduct or the speculative campaign has involved some large carvings of stocks m foreign markets with money borrowed in those markets With the approach of the year end requirements foreign lenders are dis posed it is believed, to reduce the ac- commodatons of this kind. Bills are scarce in the exchange market with which to effect remittances and the shipments Of gold are found necessary to meet the occasion. The amount of the shipment today was limited only by the supply of bar gold procurable at the assay office, and foreign bankers assume from the sustained strength of foreign exchange that gold will be shipped next week to a considerable amount
 falling off in wheat exports this week
 
 corn of 705 2O6 bushels helps to explain the scarcity of exchange bills. The money market became active and firmer with these developments, the demand being most noticeable for the shipper There Was also less demand for mercantile paper and some increase in the discount on this was recorded. The call money rate was stiffer, but the actual lending rate was but little affected. The sporadic cases of strength in the earlier stock market had to do mostly with speculative rumors, such as that E. H. Hartman is to join the Wabash directorate, that Chesapeake and Ohio is to issue bonds and raise it's dividend, that Reading Is to raise the dividend, that the New York Traction re- organization is ready to go forward with the return of the president from abroad, etc The strength reoecurred in some of these when the market rallied late in the day and cut down the extreme losses considerably.
 Bonds were irregular. Total sales, par value. $6,4Ss,000.
 United States bonds were unchanged on call.