The Montgomery advertiser., 1908-01-11
THE STOCK MARKET

New York. Jan- Io.~-After opening with a sases os3snnt upaloot Of prices, which save ma ssrs@i M extension to the rise of yesterday. great activity for, time. it began to be manifest that tRet professional operators their profits in the huriyburiy of the large
 The market showed the effect of this snange m technical conditions after that. The reduction of the short Interest which had been driven to cover by the extent of the advance satisfied demand from one source. The early market today showed some expansion of commission house busl- ness. also attracted by the appearance of reviwnE interest and strong recovery in the Of profits by the professional party which has conducted the speculation up to this
 The later market became dull ana hesi- tating in tone In consequence with these developments. There was little In the in recent conditions. The usual forecast Of the weekly currency movement agreed in reporting a very large cash gain. the amount of cash from local sources which has come into sight during the week. This refiux t E agreed was censiderabie and held in the hope of profit from the currency premiuuf@or from motives of distrust. The
 nriow 1f cash s Iron the b ntsror has m Sssn of New York on, the express movement being estimated at approximately ss.ooo, 900. The arr1NaiS or the last or the gold engage ments have been sufficient to overbaiance tions
 The stock market rallied briskly from a sharp reaction when these figures appear ed. A heavy cash gain this week has been taken for Eranted. however. through. out the week. following the evidence in last weeks bank statement of a decisive turn in the movement. The speculation in iaSssy on a shs dse fin the legal reserves of the New York banks would be practically wiped out this week. MI
 Last Saturday the deficit still stood at s11, 50s.550 that it will be perceived that its obliteration seems to depend upon q speculative activity during the week must have some effect on the loan Item and there have been some large purchases effected figure in that item With the decline in the interest rate to the netghborohooo or six per cent, which is the rate paid by the banks on their clearing house certificates, the effect would be to stimulate the retire. ment of these instruments. and such retire of the banks The factors in shaping the bank statement therefore are considerably mixed
 Discounts continued to fall in the great foreign money centers and the Austrian Imperial Bank marked down It's official rate. An item of the days news was the official statement of the geld production at the Rand in December which rose to 5sSs526 ounces, record output for any month.
 With the reaction In the stock market caused by the speculative profit taking there came into consideration again some of the topics which were driven into the baokground by the active rise. The pres sure on Southern Railway securities espe- cially was conspicuous, The rapid Inflow of cash to bank reserves is expected to be taken advantage of to replenish the United States Treasuryss working balance by some further withdrawals of government deposits with the banks. Another requirement. for Additional cash is suggested by the move- ment of the trust companies toward mem bership against New York clearing houses which will involve a very material increase in cash holdings by those institutions The markets weak closing was under the in- fluence of the slump in Southern Railway stocks and bonds. with its strong sugges- tion of serious financial embarrassment for the company.
 Bonds were irregular. Total sales par value s5.3S2,000. United states fours. coupon declined 4 per cent on call.
 CLOSING SHOCK HIST.