The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-26
REVERSAL IN TONE
IS VERY DECISIVE
Buying Dies Out After the
First Hour
STOCKS SOON 0RIBBLED
Inference Was That Wednesdays Buy
Ina Came More From Alarmed
Short interest Than From
Any Good information.

New York. May 25.-The strong opening
in today's market was the overflow effect
from yesterdays vigorous recovery. Sub
seuuent events made it plain that the de-
mand came largely from uncovered shorts
who were alarmed by the strength shown
yesterday. Their active buying for
short time after the opening was freely
felt, so that prices made no appreeiable
progress beyond the first advances. The
character of this selling inundated the
professional buyers, and they reversed
their position and sold out their holdings.
For a time the professional attitude to-
All DIS the market was one simply of alb
stention. the buying dying out almost
completely after the first hour. without
any immediate urgency to sell at the
slightest concessions.
But with the perception of the unsub-
stantial character of the demand stocks
tegan to dribble upon the market, and
prices began to crumble. Instead of the
gains shown at the opening the course
CT the days trading established compre-
hensve losses. These were by no means
sufficient to wipe out yesterdays sharp
gains, but the reversal in tone was decis-
I've The inference was drawn that yester-
days buying came more from an alarmed
short interest than from any good infor-
nation on developments in the situation.
AS a Consequence much less Importance
was attached to the reported settlement
of differences in the northwestern rail-
road field. The stock market world was
inclined to take long breaths over the
stress of the situation in the northwes-
tern railroad field at one time, as dis
closed by the authoritative intimat1ons
now allowed of the dangers averted of
rate wars. and mutual invasions of ter
ritory with newly built extensions. It was
while this condition OF things was threat
ened and efforts making to patch 1t up,
that the speculative public was most ruby
RECALLED with stories of great mergers ana
new combinations in prospect which IN
cited to the over speculation for which
the penalty is now being paid. The salts
faction is indisputable with which secur-
ity owners regard the fact that a peaceful
adjustment has been made of the con-
tending views of policy, and the difficult
ties of personal temperament which
threaten the stability of affairs in the
northwest.
But this satisfaction on a sober con-
sideration comes from danger averted
rather than from the accomplishment
of any striking new good. The uncon-
flrmed rumors of a naval battle was
disturbing influence on all speculative
markets. and in our own grain market
weather reports helped to affect the price
of wheat while the attempt OF the cor
ner in May corn was a continuing IN
fiuence in, that market. The reported
dissolution of the steel rail pool was ac-
copied as an explanation Of some OF the
mast weakness Of the United States steel
stocks and was regarded as move
rnent toward conf1rmity with an existing
state of public opinion and It's threatened
results In legislative action. Large money
transactions in connection with the pay
ment CT the final installment on the Japa-
nese loans subscriptions anu me sub
scrintios to the New American smelters
securities preferred stock were of the
slightest effect on money market. NOT
ynnch inonortance WIS attached either to