The Birmingham age-herald., 1904-05-18
RELAXATION IN DOWNWARD TREND Stock Market Has Become
 0versold SHARP RECOVERlES MADE  Conviction Seems to Be That Covering of Shorts Was Largely Responsi-
 b for Recovery of
 Yesterday.
SHARP RECOVERlES MADE

New York, May 1.-The pressure of H. auidation on a small scale which has kept prices of stocks tending downwards for several days was relaxed today. This fact seemed to be the principal motive for the buying which lifted prices. In the language of the stock exchange, the stock market had become oversold. The fact that stocks which have suffered most from recent declines, made the sharpest recoveries today, and that the brokerage houses which did the buying, were in some instances the same which had been con spicuous in the selling. were the grounds for a conviction that covering of shorts was largely responsible for the recovery There was no development in the news to account for change of temper in speculation But there were no new de- velopments to induce further selling. Unfavorable prospects for values do not warrant selling to an indefinitely lower level of prices ,the process inevitably ad- justing the price level to the new condi- ton of values. Such a pause in prevail Ing tendency as that of today marks the effort of operators to measure the ap- proximation to the new level of values. A marked characteristic of the trading was the extreme dullness which overcame the market at the higher level This does not augur well for the continuance of price movement in its current direc- ton.
 The dlsinelination to follow the advance had it's influence in renewing the doubts of operators over the outlook for values, and in turning the market heavy again. The most important incident of the day was the publication of the weas5er Du- reau's weekly summary of crop eondi- tions.
 It was of little influence on stocks, ow- ing to the little change indicated in pre- viously existing conditions. Winter wheat was reported improving in the west, but in poor condition in the Ohio valley, and the progress of spring wheat seeding showed the same mixture of conditions. The unfavorable conditions of the cotton crop was according to expectation There were no additions to the engagements of gold for export and the rise in call money rates was checked, but the tone of the time money market was firm.
 Reports of the placing of some sterling loans here gave the impression that the course of money rates nere and abroad was approaching the point of equilibrium, which would stop the flow Of specie rom one point to another. The winding up or the extended United States Steel preferred stock conversion syndicate was without disturbing effect either on the money mar ket or the United States securities, which was a fact negatively encouraging.
 The sharp drop in United States Rubber stocks on the publication of the annual re- port, pronounced by the President to be the best in it's history was an example of the inability of the market to absorb offerings of stock accumulated in anticipa- ton of the report The Erie stocks were acutely sensitive to the reaction in the market. The trading became wholly un- interesting In the latter part of the day. The closing was quite firm, but the final rally was slight
 Bonds were steady. Total sales, par value. s1,540,o00
 United States bonds were unchanged on call.
 Bonds.
 United States 2s, registered. d..........lo4sA