The Birmingham age-herald., 1903-05-22
SHARP CONFLICT 7
 BETWEEN ELEMENTS
Very Feverish Fluctuations Dur
 ing the First Hour
BONDS WERE IRREGULAR
Mondays Losses Were Not Entirely Wiped Out By the Days Animation, But Demand Was Sustained
 at the Higher Level.

New York, May 21-There was a short, sharp conflict between the contending ele- ments in the stock market this morning with very feverish fluctuations during the first hour. The pressure to sell fairly overcame the market at one time and carried the level of prices to new low record for the movement below last night. But the supporting orders, which were in evidence on 8 very large scale from tho start absorbed all offerings until the pres sure to sell had spent itself and the de- cline was effectually checked. Half the days total transactions were done in the first hour. Afterwards there was slow but increasing upward movement and the market closed firm and quite active at the top level. There was a continuance of important liquidation from the first hour as shown by the large and concen- trated selling in St. Paul, the United States steel stocks and some of the Cana dian stocks which suffered in yesterdays speculative collapse. The selling of the United States steel stocks was based upon the somewhat equivocal tone of the weekly Iron Trade Review by an authority in that trade A downward tendency in many branches of the trade is pointed out The argument that an abnormal condition in iron is being abandoned by yielding prices for a more normal and therefore more stable basis, is coupled with the admission that the price at which buyers and sellers will finally come to- gether is still a puzzle. The selling of St. Paul was believed to be for important interests, owing to It's volume. and 1t was feared that the demand of the freight handlers in the northwest carried a threat of serious trouble.
 The weakness of Northern securities on the curb and selling of the Burlington Joint bonds were attributed to the same cause But the same confidence with which the heavy offerings thrown upon the market was absorbed recently served to relieve the fears of wiping out of margins and shrinkage of collaterals which have aggravated the weakness of the market for several days past An inn portant factor In the support of the mar ket was the heavy buying for the Lon don account, which Is estimated all the way from 75,000 to over 100000 shares for the day. This made itself felt not only in the stock but In the foreign exchange market where the appearance of bills from the arbitrage brokerage houses broke the rate some points and left the feasibility of further gold exports matter of doubt. The reduction of the Bank of England discount rate from to 81z was the basis of the improved tone of the English speculation. The weekly statement of the Bank of England with It's decrease in "other securities" of $S8,- 7S0,00o shows that the enormous loans of last week to float the TransvaaI loan have practically all been repaid It shows also the confidence of the banks that the large supply of foreign capital now loaned in London will not be disturbed by allowing the interest rate to relax The likelihood of further demands on our own gold supply Is therefore diminished. Finally the decided reaction in the cot ton market served as a restorative of con- fdence and relieved the pressure of liqui- dation of stocks to cover losses by the shorts in cotton. The market lost much of its animation on the upward course and the days net advances failed to wipe out entirely yesterdays losses. But the demand was well maintained at the high CT level. A feature of the day was some further wide declines in the marketing of inactive stocks.
 The bond market was irregular Total sales, par value, g, 650,O00. United States bonds were all unchanged on the last call