The Birmingham age-herald., 1904-01-22
BURST OF STRENGTH IN STOCK MARKET All Lists Carried to Higher
 Level. SHORTS RUSH TO COVER Force Which Had Been Gathering for Some Time Routed a Large and
 Obstinate Short Re-
 sistance.

New York. January 21.-The influences which have been gathering force for some time in the stock market caused an out burst of activity and strength today which carried the whole market to higher level, and routed large and ob- stinate short interest.
 The rush to cover of the shorts was an important influence in carrying some of the most active stocks upwards and the speculators who were long of these stocks were able to take their profits at the ex- pense of their bearish brethren. The movement was without any important news developments beyond those that have been under discussion for several days. There was a tendency towards specialization of the belief that war be- tween Russia and Japan is likely to be averted for the present.
 The foreign markets continue to mani fest hesitation and inactivity in the ap- prehension that turn for the worse Is to be feared, but the agreements reached on successive points in the controversy have given growth to the conviction here that the points remaining are not sufrl- d
 The growth in volume of the demand for bonds has made an impression upon the speculative mind as usual precursor of an improvement in the buying of stocks, and the continued heavy accumu- lation of money at this center, adds to the belief that the demand for bonds is likely to extend to the stock list
 It Is plain that the recent low state of sentiment in the iron and steel trade no longer exists and definite prospects of betterment of conditions there have been an tmpr ession in the speculative markets, but it has been large and in- nuentiai party in the speculation which was held firmly to the ground that such signs of strength, as have appeared in the stock market, were purely manipu- lative, and that the entire absence of public demand for securities would pre- vent the buy yers from disposing of their holdings at a profit
 Yesterday and today the bull campaign appeared under such auspices as to im- press the uncovered bears with fear that its progress might extend beyond their means to oppose it. The covering demand was very heavy from various outside points. The leadership in the market op- erations was rather clearly traceable to several causes which have been imposing influences in great market movements of the last few years, and the prestige of this leadership helped to demoralize the bears. There was enormous profit taking Throughout the day. at first in stocks which have led the preliminary advance before today. These included Southern Pacific Rock. Island, Reading, the Eries Amalgamated Copper and United States Steel preferred. Later, when some of these laggards were brought into the move ment the profit-taking shifted to stocks which had advanced in the early part of the day. This double process of closing up speculative commitments serves to re- duce the technical forces in the market for further movement in either direc- ton. The breaking of the drouth in the southwest was one of the helpful influ- ences of the day, owing to the marked in- fluence upon the wheat market. Specula- tive hopes were expressed of a large di- version of profits of cotton speculation Into stocks. and the initiation into the stock exchange membership of the leader of the cotton speculation, was an appro- priate feature of the day.
 The market closed active and firm, and near the top prices for the majority of stocks.
 Bonds were active and strong.
 Total sales, par value, $7075,0O0. United States bonds unchanged on call.