The Birmingham age-herald., 1911-01-08
STOCKS UNAFFECTED BY CLOSING 0F BANK r
 Slight Reaction Is Followed By
 Quick Recovery PRICES RULE STRONG y --.s fAfter the Early Flurry the Leading ss Issues Become Active and General
 Advances Are shown at
 the Close
PRICES RULE STRONG
BY RALPH EMERSON

New York, January 7.-(Special.)- .closing of the Carnegie Trust company did not affect the stock market to any iappreciable extent today. The fact that Inc failure did not involve the stability of other institutions and that 1t realized from methods of banking peculiar to that one concern no doubt explained the mar ket's indifference to the news After re- acting fractionally at the opening prices recovered quickly and the whole market ruled strong, with unusual activity for a Saturday.
 Buying of Reading, United States Steel and the usual active shares continued throughout the morning, towards the close the whole market became bouyant, with heavy buying in all quarters. final prices in general being virtually the high est level of the day.
 ! The principal event of the day on the money market was the continued strength In foreign exchange with further ad- vance of A cent in price on London re- mlttances. The heavy buying of ex- change within the last few days has also. reflected repayment to London of some
 
 bankers several weeks ago when unusual efforts were put forth to strengthen the New York bank position in anticipation of the year and requirements on the money market.
 The banks made very strong showing for the week in which the return flow of dividend and interest money is always pronounced in spite of s1O.24s,6oO gain in actual cash, this increase. by the way, being $3.oO0.oo0 more than the gain indi- scated by yesterdays preliminary fore- casts of the weeks currency movement, the banks report an actual loan reduc- tion of $22,631, 300. In this way the actual surplus was enlarged on the sum of $12, 563,00 The actual surplus stands, there- fore at $1S,74S, loo and the average at $9,- e6o2,000. Inasmuch as the Trust company also reduced loans sso35,ooo. the whole bank position has been materially strengthened during the week.
 T The strength shown in the stock market In the early part of the week did not entirely fulfill the expectations for pros- porous week on the opening of the New Year. The greater bulk of trading ap- pears to have been furnished by the pro- fessional element rather than by gen. eral revival of business.
 Most of the leading banking interests still held aloof. from market operations and were apparently opposed to activity at the present time, hence there was nothing to indicate January rise, such ps has occurred in some Issues of the past. The banking community now is in- terested chiefly in Forthcoming loans and many argue that an active stock market at the present juncture might interfere with the successful floating of these loans, consequently no encouragement is offered at present to bull campaign in Btocks by the leading men, who frequently figure on the constructive side of the ac- count.
 e. That the situation Is ripe for the ab- sorption of new bond issues has been gclearly developed by the renewed activity in the bond market, which gained force as the week drew to close. The restora- tion of ease to the money market in creased with the lapse of time and pre- sented a very favorable contract to the course of affairs on the first week of 1910. This was a great stimulus on the investment demand and it's influences promise to extend into the future. The first important loan on the new year will probably be that of New York city for something like $5O,O0O.0OO and will be brought out before the close of the month ,a
 The easing up in money here has formed quite 8 contrast to the situation in Lon- don, where discounts within the past few doIy hoU c11 o ha r6n under circumstances that at the close of 1910 for gold upon the Bank of England has arisen from Argentina, Turkey, Egypt, India and Germany, and deple- tion of the banks gold supply in con sequence has taken place at a season when recuperation is the rule. The action of the Bank of France in refusing to sell gold for export to any country be- cause of the large French imports of wheat made necessary by the partial failure of the French crop, has thrown the entire strain of the worlds demand upon the English bank. The best fea- ture of general trading has been the large final retail distribution of winter fabrics, a natural result of the low tenn peratures that have practically prevailed Ill over the country. The basis industry of the country still lacks improvement. The December output of pig iron fell off ' per cent from November and reached the lowest monthly stage since April. 1909. The decrease from 1909 was 13 per cent and with this condition prices were low CT. New business in finished steel prod Ncts continued at a low ebb. with fur ther price cutting. which invests with much importance next weeks steel con ference. T
 Inquiries for cars and locomotives formed the only bright spot in the steel and iron industry The Hartman lines ordered lSe locomotives. The expenditure by the allied Hartman lines on this sin gle purchase will be between 33500,000 and $4.00O.000.
 The Pennsylvania Railroad company