The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1908-12-25
SPECULATION IN :
WALL STREET
SHARP SET BACK FOR THE 5Io
OPERATORS DURING THE
WEEK.
TIGHT MONEY WAS A FACTOR
Plenty For Legitimate Purposes But
Not One Dollar For The
ManIpulatorG
81 is 1t too

NEW YORK, Dec 20.-The sharp
setback in prices Of stocks which 90.
Cured last week belied the hopes OF
the speculative element, which counted
on the protection OF the market
against reaction by the millionaire
operators through the Tightening OF
the year-end money markets. The
support of prices which has been rig
Idly maintained at all stages of the
great rise of the last 1ow months was
seemingly abandoned at times DURING
the week, and the diminished supply
Of resources available for borrowings
for speculative purposes was slearlN
an element in that coure OF conduct.
AT the same time some of the weeks
developments were regardd as an in
dex of the over-sanguine assumption in
the earlier speculation as to the fav-
orable course of events.
The causes back of the rising inter-
est rates for money were sufficiently
obvious. The weeks drain of cash re-
sources alone, which, with the gold
shipment of the previous Saturday ana
the large sums paid into the Subtreas.
ury on subscriptions to the Panam1
Canal bonds, was sufficient to wipe out
the surplus reserve of the banks. At
the same time nearly every day saw
an announcement of some new bond
sale or Of some issue TO be offered 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 from other
centers to the New oYrk money mar
ket. 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 of mer-
camille borrowers, are not so assured
a resource for stock market borrow
ers There were developments to
show, also, that along with the refund
Ing OF short-time obligations of the
great corporations put out at high
interest rates during the period of 40
tual stress, there are some maturitiem
falling due of a more personal natura
FOR which provision is sought in q
1uieter 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 conviction is not so
strong that extreme ease of moneN
will come promptly after the turn Of
he year. Enormous capital issues
await that season for fotation, the
1926, 100000 Russian loan in Paris and
extensive railroad borrowings here be.
ng included. In New York the
made last year to the
banking laws provide that the full re-
Iuirements on the trust companies OF
8 per cent of deposits to be held in
ash In their own vaults shall go into
orce on Feb. 1. Since July last these
ompanies have held 10 per cent OF
eserve, and it is estimated that the
Increase of per cent will call for
omething like $45,OOO,OOO. It is en-.
ected that the accumulation of tnis
considerable sum will begin soon at
er the first of the year. The posi-
ility is thus presented that the great
bundance of money looked for aftet
he first of January may have been
nticiapted from so many quarters
hat the demands upon it may outrun
ne actual supply or greatly modify
s effect on the rate Of interest.