The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-10-27
SEVERE INROADS
MADE IN STOCKS
Substantial Recoveries Made IN
Late. Trading
ADVANCE SEEMS CHECKED
Quarterly Statement of United starss
Steel Corporation Was oisap 'oInt-
ina an was Important
Fact,r in Trading
ADVANCE SEEMS CHECKED

New York. October 26-Dealings In
stocks today were not up to yesterdays
record hut the dimensions and the aston
fishing breadth and variety Of the market
were well maintained. The list was sub
iected to a pretty searching liquidation,
and severe inroads upon prices resulted
but the benefit to the markets health on
this process began to be shown in the lat
ter part of the day, when there was sub
stantial recoveries from the low level.
The reactionary course of the market was
largely due to technical causes.
AS much of the recent buying has been
due wholly to the fact that prices were
moving up, and were expected to continue
to do so, yesterdays demonstration that
the advance was checked, induced selling.
Yesterdays performance in Union Pacific
and the inadequateness of the news to ex-
plain 1t, awakened uneasiness owing to
the half hysterical character of its move
ment, and its revelation of the emotional
nature of very large operations In the
market. The psychological state which
prompts an indefinite buying, is quickly
altered by simple change In the direc-
tion of prices, and considerations or IN
trinsic value have no force to prevent
this change.
There is the additional factor of forced
sales on a reaction by the wiping out OF
narrow margins, and the uncovering OF
stop loss orders placed below the market,
and which are always in unusual volume
after violent movement in price. All these
forces operated in causing the weakness
today But consideration was also given
today to the more material factors OF
the disappointing quarterly statement OF
the United States Steel corporation, the
irritating tension between Russia ana
Great Britain and the prospect of con-
siderable gold export movement. 1t is
enough to indicate the drsaI pointment OF
the highly speculative element with the
United States Steel report to know that
reports we're circulated on the stock ex-
change yesterday that the quarterly net
earnings would amount to $23,OOO,OO0
While the 9S2 reported was near
the expectation in more reasonable and
well informed quarters, the low figure OF
III untitled orders on hand was shock
to the sanguine feeling which has grown
up regarding the revival In the steel In
dustry and the additional Informal as
surances given by the chairman OF the
board of further expansion in orders
since the turn of the quarter proved in
sufficient to overmocme this sentiment.
Selling from the steel centers and from
the west was very large, both for the
United States steel stocks and the Pa
cifc, and Pennsylvania showed the usual
sympathy with United States steel Lon
don also sold freely here.
While it was believed that the acute
ness of the Anglo-Russian crisis was as
suaged for the present, the situation was
felt to be dangerous and liable to some
explosive episode which might throw it
out of the power of the diplomatists to
control Yelled limitations of undisclosed
developments played part in the market.