The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-06-13
| ICES CARRIED UP
ON ACTIVE BUYING
MS Considerable Profit TAX
ing on the Rise
DEMAND WAS FED FREELY
Buying From HeIated Investors Was
Significant of a Feeling of Conf
dence That the Turn In the
Market lie Permanent.
DEMAND WAS FED FREELY

New York. June 12-There was contin-
uance today of the active buying OF
stocks which developed so suddenly yes
terday morning, and prices were carried
to a substantially higher level through
out the list on dealings of over million
shares. The market closed active and
firm at near the top level, profit-talking on
the considerable rise, making insignifi-
cant impression on prices. The large de-
mand this morning for stocks was fed
freely and the active trading of the first
hour was within fractional range OF
fluctuations after the opening advances.
The confidence with which these offer
ings were absorbed encouraged renewed
buying The demand showed signs Of be-
ing satisfied at times during the day, and
there were lulls in the activity of the
market with fractional recessions in
prices. but no important pressure to sell
developed at any time during the day,
and the bulls had the situation complete
ly in hand. Evidently a considerable part
of the demand came from the short in
terest which had failed to cover yester-
day in. the hope of reaction from the
first rebound of which had put out fresh
lines to contest the recovery There was
some covering of short lines of older
standing as well, which were put out
earlier in the stock market reaction and
which have remained uncovered through
the occasional rallies. This demand and
some puying from belated investors was
significant of a feeling of confidence that
the turn in the market is something more
than temporary.
There has been a recognized waiting IN
vestment in the demand which has held
back from buying on the principle that
SO long as the market was going down
they might get stocks cheaper. Thurs
days sudden rebound deprived this ele
ment of it's opportunity to buy stocks
near the lowest, but there seems to have
been some buying of this character to-
day There was evidence also OF some
new speculative ventures on the long side,
and of renewed activity by organized
pools In certain stocks.
The dealings in Reading were on an
extraordinary scale and 1t was rushed
up points in the late dealings. helping
materially to sustain the late strength Of
the market. A judicial decision affirm
ing the right of the coal-carrying COM
pany to refuse to comply with certain
demands for information by the inter-
state commerce commission, was the NOM
inal basis for the rise. Rumor was also
circulated of good statement of earn
ings for May to be shortly published.
The Baltimore and Ohio May statement.
showing more than two-thirds of a hand
some increase in gross earnings preserved
for the net earnings, made that stock
and those affiliated with 1t prominent
features of strength. The Pacif1cs and st.
q, dam nd M W q
Bome disposition to attribute the strength
of the Gould group to vague suggestions
that the heavy accumulation of Pennsyl-
vania on the decline had resulted In suf-
ficient holdings to secure representation
In that company for the Gould interests.
The forecast of the currency movement
indicated sufficient balance of receipts
from the interior to offset the loss to the
sub-treasury and by gold exports and in
addition yield an increase in the cash
reserve of the banks of nearly 100000.
1t Is hoped that the heavy liquidation
early In the week will be reflected in
considerable loan contraction. Sterling
exchange continued to recede and an adj
ditional engagement was made of gold
to go to South America. Monday Is the
first day upon which payments are to be
made Of the 30 per cent installment OF
subscriptions to the new Pennsylvania
stock issue. This will call for the pay
ment of $45000,O00 on or Jefore June n.
Large portions will be paid in Europe
and In Philadelphia and it has been Of
ficially intimated that the proceeds will
be used for repayment Of the $40, 100000
loan taken out by the Pennsylvania for
six months last January.
Bonds advanced in sympathy with
stocks. Total sales, par value, 2,S350O0
United States rs coupon declined "A and
the new As " per cent on the last call.