The Birmingham age-herald., 1908-12-21
Support of Prices Has Been Abandoned for Time Being
MONEY MARKET TIGHTER
Approach of the Years End Induces Caution Among Traders, and Bears Take Advantage of Situation
 To Cut Prices Some.

New York, December 20-The sharp setback in prices of stocks which oc- cured last week beled the hopes of the speculative element which counted on the protection of the market against reaction 'oy the millionaire operators through the tightening of the year-end money mar kets. Support of prices which has been rlgidly maintained at all stages of the great rise of the last few months was seemingly abandoned at times during the week, and the diminished supply of re- sources available for borrowing for specu- latiVe purposes was clearly an element In that course of conduct At the same time some of the weeks developments were regarded as an index of an over sanguine assumption in the earlier spec uiatlon as to the favorable course of events
 Inc causes back of the rising interest rates for money were sufficiently obvious The week's decline of cash resources alone, which, with the gold shipment of the previous Saturday and the large sums paid into the sub-treasury on subscrip- tons to the Panama canal bonds. was sunlcient to wipe out the surplus re- serve of the banks At the same lime nearly every day saw sA announcement ot some new bond sale or of some issue to De o1ered for sale in the not distant future. The rise in money rates was effective, first in checking the outgo of gold and then in attracting some funds rom other centers to the New York money market. The New York exchange rate at Chicago advanced to a premium in the process of remittance
 These sources of relief, while calculated to supply requirements of syndicates or mercantile borrowers, are not so assured resource for stock market borrowers There were developments to show, also that along with the refunding of short time obligations of the great corporations put out at high interest rates during the period of actual stress, there are some maturities falling due of a more personal nature for which provision is sought in a qujeter way, but not without effect on the money market and also 1t is prob able on the stock market. In the longer view of the money market also the con- Vction is not so strong that extreme ease Of money will come promptly after the turn of the year. Enormous capital is- sues await that season for Notation, the R.25, ,000,000 Russian loan in Paris and extensive railroad borrowings here being included.
 In New York the amendments made last year to the banking laws provide that the full requirements on the trust of be held in cash in their own vaults shall go into force on February l. Since July l. last these companies have held 10 per cent of reserves, and it is estimated that the increase of per cent will call for something like $45,000,00 It is ex- pected that the accumulation of this con- siderable sum will begin soon after the first of the year. The possibility Is thus presented that the great abundance of money looked for after the first of Jan uary may have been anticipated from so many quarters that the demands upon it may outrun the actual supply or greatly modify it's effect on the rate of interest.
 The progress of hearings on the tariff revision before the ways and means com mittee of the House at Washington in- dicates a widening scope of deeper con- sequences to flow from the course to be taken by that work. The attitude of the
 
 closed in his public utterances are taken to foreshadow his active sympathy with this tendency. MT. Tafts views on the Sherman antitrust law also remove some assumptions as to the immunity likely to be enjoyed by corporations under the new administration from the application of tliat statute. Threats of a movement in Congress against the proposed increase in freight rates by the railroads opened up new prospect of governmental in- tervention.
 It is the belief of those interested in the railroads, however, that the compre- hensive changes in rates and classified tions proposed by all of the great rail- road systems will become effective and will be a material factor towards re- establishing the revenues of the railroads This belief is a strong underlying in- f1uence in the stock market The plac- ing of the Pennsylvania railroads year ly order for steel rails was an important incident of the week. The general plac- ing of orders by railroads is, therefore, looked for soon.