The Birmingham age-herald., 1908-12-14
UNUSUAL ACTION
 IN STOCK MARKET Obscure Stocks Bob Up Into
 Lively Prominence MOVEMENT IS SUSPICIOUS Many Believe That Excited Speculative Advance Is Due, While Others Fear
 Sudden constriction In
 Money Soon.
MOVEMENT IS SUSPICIOUS

New York, December 13.-An upward tendency of prices of securities was plainly discernible in the stock mar ket movement last week, although the uneven and, at times, irregular action threw some confusion about the tone. The week was notable for the large number and variety of low-priced stocks which advanced suddenly and without clear explanation. This fea- ture was the ground for some ex- pressed suspicion of the speculative position, the more so as many of the high grade stocks which have ab- sorbed most attention for long time and which are better representatives of general conditions, were almost i'm movable. The representative stocks quite naturally responded first to a the course of general business and af- fairs. more belated response in the lower grade stocks in business of more special character is equally natural. The normal course of prolonged speculative campaign under skillful conduct is a shifting from the high grade stocks after attractive profits have accrued in them to low-priced issues, the new advance in the latter serving to sustain the tone of the mar ket against the selling to take profits on previous purchases in other stocks The pursuit of this process reaches in time to the dregs of the market and stirs up lot of nondescript intrinsic value as to be charity handled in times of speculative indifference A move ment In such securities is accepted as warning by practiced operators of the approach to a continuation of a specu- lative movement. In the movement now in progress in the stock mark ct, last weeks emergence of some of this distrusted class of securities, is not the first that has occurred, and this former prominence proved without effect In checking the upward movement of oth- CT securities. For this reason, specu- lative opinion over the future course of prices has remained divided with the supposition held by a considerable party that the movement was broaden ing into a general and widespread par ticipation of a kind which overturns all ordinary rules and swells into such excited speculative movements as have proved historical
 It has proved not unusual for specu- lative movements of the past to be suddenly arrested in full career by a sudden constriction of the money mar ket,S leading to an unexpected with drawal of credits employed in stock market operations. The dread that the approach of the end of the year might develop such condition proved an occasional restraint on the money mar ket. The past week saw a seasonable hardening of money rates. Accumula- tions of reserves have commenced to provide for the great annual disburse- ments and to meet the demands of the holiday trade. A decline in condition of the Bank of England until the end of the year is looked forward to as a consequence, with a possible advance immediately of it's official discount rate, and the corresponding response in all the great money centers which that action always involves. The Bank of France continues it's unprecedented accumulation of gold with the result of renewing the outward movement of gold to that center from New York. The recent bond issues in New York have helped to absorb available cerdits ana lO swell the loan ana deposit items of the banks to record figures. The government fiscal operation including bank note redemptions and subscrip- tions to the Panama canal bonds are drawing large sums from the New York banks into the sub treasury With the decrease of the bank sur plus from it's former unwieldly propor- lions, there arises the question of the sufficiency of the money market sup plies to carry over the end of the year with out exhaustion of the sur plus and pinch in the money market. The conviction is general that with the turn of the year there will result a great reflux into bank reserves and great ease In the money market
 The immediate developments in busi- ness and industry have not played much part in the stock market The assembling of Congress and the Presi- dents message were without the dis turbing effect some times felt Some material for an advance in prices was in fact, seen in those events There was better feeling over the copper trade and expectations were professed of an early placing of some large or ders for steel products by the large railroad systems.
 Movements amongst the railroads to raise freight rates were regarded as favorable to the interests of share holders.