The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-10-23
GOOD GAINS MADE
/. IN STOCK MARKET
Support Is Strong Near Close
Of the Session
OFFERINGS ABSORBED
Past Week In a Market That Has
Been Hesitating and Very
2 Uncertain
BY RALPH EMERSON

New York, October 22.-(Special.) Sup
port caused the stock market to rally be-
fore the close today from further de-
cline of yesterdays close at the open
ing. The decline came Immediately upon
the opening, but only leading stocks
were brought ND to the level of yester-
days close.
The influence on bank celarings of an
active market for securities Is shown in
this weeks exchanges at New York,
which are only per cent less than
year ago as against continued declines
for months ranging from 20 to 30 per
cent Boston, Philadelphia and Balti-
more all increased their clearings, but
Chicago and st. Louis had decrease.
After the early supply of stocks had
been absorbed the market became very
strong. In the last half hour it showed
advances of 1 to 21a points from the
low of the day
Shelters touched the highest on this
movement One or two of the inactive
stocks were weak. An indication of inn
provement In business is shown in the
decrease in the surplus of idle cars, which
IS now down to 1900, and has probably
been about wiped out since the report
was made on October II.
The marked rise in the stock market
was the overshadowing development in
the financial world during the week. Abb
sorption of stocks invariably takes place
on market that acts like bull market.
So it was in this case
Other consequences are that bankers,
manufacturers and merchants who do
not gamble on margins are accustomed TO
regard the stock market as a useful, al
though not infallible, index of underlying
tendencies in money, trade and indus
try. II
That the rise which practically began
in the early part of September has been
manipulative is patent but what is more,
II has been rewarded with success In that
1t has begun to appear that outside en-
thusiasm peryades the market, which
nlakesp up the public, so-called. Conn
mission houses in Wall street and
all concerns which make a business
Of carrying securities ON margin for Gus
toners have increased their lines lately,
especially in the last fortnight.
IT is more than likely that some of the
news of the week helped the task of
raising the speculative structure. On
this account much might be said OF the
foreign trade statement for September.
I'hls showed exports of record amount
for the MONTH, aggregating almost $780,
SOC, 600, and the slight import balance for
Shipments last year. while imports de-
creased s4.00OO0O in comparison with Sep
.tember, 1909, to a little more than $117,-
100000 As, a result an export balance was
reported amounting to ISL 100000, whereas
August showed an import balance of 3d.
10000, an. dthe slight import balance for
IL - naIn 1D,-
year was converted to an export excess
Of about $50 00O, 600.
Most of the export gain was owing to
the over-stimuation of cotton shipments
on account of the bill of lading contro-
versy. and the cotton movement in the
last three months of the year may make
less favorable comparisons with last year
on this account.
Next to the stock market of the week
the most important news was furnished
by the money market The Bank OF
England has advanced its minimum dis
count rate to s per cent, rate which
has obtained rarely in d-October in
the last quarter century.
The Bank Oh France shows discounts
At the present time almost one third
larger than the average at this sea-
son in recent years and holds $4,000
900 less gold than last year.
The bank stateemnt showed by its
ACTUAL weekend ngureS that tne assoc
ciated banks had been shifting loans
again, not only to the trust companies
but to other outside lenders-presum-
ably interior banks. The weekly trust
company statement reported an in
crease of $5,000,000 In their loan ac-
count; the loan reduction at the banks
was $12,600,000 and their showing by
daily averages made the figure much
larger. Despite this heavy curtailment
Of loans and liabilities the weeks $5,-
200, 900 loss of cash caused a decrease
in the surplus. The average state
.ment" 1t is true, showed $4,000, 600
increase, but in week of continuous
speculation for the rise the actual
showing gives the real information. The
week end surplus reserve of 10000
900 is $6,000.000 under that of year
ago. Equally interesting the fact that
the excess of loans over deposits.
which was s25, 400, 900 a week ago, rose
today to s31 100000. That Is by far
the highest excess of the sort reported
since the second week of January, 1908.
Bonds.
". s. ref. -, reg. ............ 1O0sz
u. 3. ref. n, coupon ........... 1o0sl
u. 8. SIS, reg. ................... 1O1N
u. 3. IS, coupon .....-........... 1019z