The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-24
UNCERTAINTY IN
STOCK TRADING
Speculative Mind Was ConSid-
erabIy Mystifed
REINSURANCE CAME SOON
Immediate News of the Day Had Lit
tie to Do With the Course of
Prices-close Was
Easy.
REINSURANCE CAME SOON

New York, May 23.-The varying fiuctu-
ations of the price level on the stock
exchange today reflected a condition of
uncertainty and of a good deal of mysti-
feation of the speculative mind. The mys-
terry continued to center around the source
of the effective and imposing selling OF
yesterday The uncertainty had to do
with the nature of today's buying and the
question of its substantial motive. 1t was
the general supposition that yesterdays
violent declines would have natural
supplement today in large selling orders.
The level of prices last night was quite
generally below the extreme decline of
last month, and having broken through
that level, the usual course in specula-
tive market is a considerable additional
decline. 1t became evident very quickly
today, however, that neither the impair
ment of margins nor the nervous feeling
aroused by yesterdays weakness mad re-
suited in any considerable accession of the
selling pressure. Public announcement was
made almost Immediately of the suspen-
sion of the Merchants trust company,
and professional bear traders followed
their invariable rule of buying stocks to
cover short contracts when the news
which induced the selling has come out.
There was very general opinion that II
the trouble of this trust company was
the inducement of the selling on yester-
day. The process had been considerably
overdone, so that it behooved the sellers
to retrace their course. 1t occurred to the
vaccilating mind of the traders, now
ever, that the arrest of the selling IN the
early hours yesterday had been but
preclude TO heavier selling as the day adj
vanced. The reactions of the first hour
in consequence wiped out practically all
of the gains.
The second upward movement was due
to a feeling of reinsurance that the press
ure to sell did not develop the dreaded
urgency Covering the short contracts put
out during the decline yesterday undoubt-
edly played a considerable part in the
wide recovery of the second movement
This was shown by the special prominence
in the advance of the stocks, which sur
fered most on Yesterdays decline. When
the urgent demand from the shorts had
been satisfied the scarcity of any other
buying became conspicuous and hesitat-
ing, and uncertainty overcame the spec
ulauve mind again. Immediate news OF
the day had little to do with the course
or prices An easier toiie IN 'i0 an
market gave an admontion that yester-
days crop scare was probably overdone,
and today's weather reports from the
grain belt were better But 1t remains true
that the season of hazard to the growing
crop is to be gone through with the
certainty of many changes in the influence
from that field on the speculation. The
difficulties of the Merchants Trust COM
pany have been generally understood Tor
some time al their origin in old standing
conditions deprived the incident of any
mower for violent effect. There is, how
ever. sufficient room for the drawing OF
anaIoetes and the recent expansion OF
the activities of trust companies into new
fields. and the large additions 60 their
number have received active discussion
The ease of money was unaitered, put
sterling exchange continued 10 advance.
THE market was practically in torpor