The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-08-14
RUSH UP ON
BUYING MOVEMENT
Stock Market Feels Reaction
from Recent Depression
OPERATORS ARE RELIEVED
Constant Threat of Forced Liquidation
MISUNDERSTANDING Deal Stimulates
Speculative Imagination and
Adds to Better Feeling.

New York, August .1S.-The recuperative
forces in the stock market gathered re-
sources today with the result of a buoy
ant uprush In prices on very animated
buying movement
The forenoon session Of the market
promised the largest days business for
the current year. The market after
ward showed some signs of WEAKNESS at
the rate Of the movement. The recovery
was the result of a series of incidents
rather than any one development Nat
ural reaction from the recently prevailing
extreme depression was an important
factor. The mere sentimental effect of
the recovery after the gloom and ap-
prehension that have prevailed so long
In Wall street was considerable I'M
mense relief from the constant threat of
forced liquidation or of bankruptcy which
1t Is not unfair to assume, has been
hanging over some houses, naturally pre-
disposed the whole field community to
take more cheerful view Of prospects,
Where efforts for long time past to
market securities have met with almost
no demand, there was lively and urgent
demand for stocks and for bonds of all
grades today The urgency of some of
the buying and the violent advances in
prices showed clearly enough that efforts
by distressed shorts to cover their con-
tracts before the rebound carried prices
beyond their reach were an important
element In the market. Bidding up of
prices by professionals to force higher
prices out of the bears was another in
nuence; but 1t was evident beyond that
there was large and substantial buy
ing element in the market which was
taking over stocks of all classes with
freedom and confidence 1t is not to be
presumed that the buyers have so sud
uenly changed their opinion of the finan-
cial and business outlook But the con-
viction has been growing that the long
decline in prices has been more than suf-
ncent to offset the unfayorable factors in
the situation, and that necessities of
the money situation have forced the SELL
ing OF securities to below their true
values. The event proves the contention
oI those who have maintained that there
Was a large waiting demand for stocks
which would come into the market free
ly when the liquidation seemed to be
concluded and prices definitely turned
upwards.
The taking over the Seaboard Air Line.
In the Rock Island interest had a slim
uiating effect upon the speculative i'm
agination 1t furnished proof that not all
the large interests were hard pressed to
mold their undigested securities, and that
the financial necessities in some quar-
ters might prove opportunities in others
for extending interest and in consolidate
Ing control. Rock Island ITSELF as well
as Southern Railway Illinois Central and
Louisville and Nashville also shared in
the days community of interest in the
southern railroad field. number of
stocks of minor railroads supposedly
available for absorption by that power
ful neighbor were strong. The feature of
the day was Reading. It's sensational
rise of 55s gave rise to many rumors re-
garding new projects for division of con-
troll and guarantee of dividends. A very
favorable showing of July net earnings Is
expected for the road as well as for other
coalers. Baltimore and Ohio's increase in
July net earnings of 1911, 625, thus con-
serving nearly half the gross increase,
helped the soft coal group. But the rise
in prices was so comprehensive as to re-
quire no speculations.
The United States Steel stocks did not
share fully in the days strength, al
though they We're bought on a large scale
The conference of the members of the
senate finance committee, with the Presi-
dent, gave rise to assumptions regarding
the scope of plans for financial legislation
which were used with effect to further
the advancing tendency of prices. The
buying movement showed some signs of
exhaustion at the last and the market
closed irregular and below the best
Bonds We're strong; total sales $4245.000
United States bonds were unchanged on
call.