The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-06
SHOWING
IN STOCK MARKET
Technical Strength of Market
Greatly Increased
SOUTHERN GROUP STRONG
Had Suffered More Than the Average
From Violence of the Reaction
From Excessive speeula-
tie Advance.
SOUTHERN GROUP STRONG

New York. May 5.-The stock market
vas free today from the pressure of ur-
gent liquidation which broke yesterday
and recorded vigorously something more
than the losses of the day before There
was a decided thrinkage In the volume OF
business showing that the bidding up OF
prices had to be carried further to re-
cover a less amount of stocks than was
sold yesterday.
This constitutes an excellent showing
of the reduced volume of stocks offering
for sale and is an indication of technical
strength In the market and of relief af-
forded by the liquidation so far completed,
but there was a very marked falling off in
the demand at the higher level of prices.
the dizziness of the trading showing a
progressive increase. The inference is that
the buying was to a large extent forced
in the same way that yesterdays selling
was The bear traders who followed the
decline yesterday with free short sales
felt obliged to cover their short contracts
in face of the evidence that the most
urgent liquidation was completed. Some
of the fears aroused yesterday by the
sign of weakness in the market, but which
was given currency by the industry of
the bears, lost their force today and the
relief thus afforded helped on the rally.
There was no important change in the
news bearing ON values, but there was a
decided change In the temper shown in
its Interpretation. The attitude toward
Reading affords an illustration Yester-
day the stock was sold an account of the
news 10 dicfr n
Shores treasury haldings this was
supposed to be a we'll informed view that
the price had advanced unwarrantedly.
Tocay it was urged by the fact that this
considerable supply had been marketed
without preventing the great rise in the
stocA was evidence of the absorption
power of the mar'-et for it and its in
trinsic strength. Yesterdays fear of a
conflict at the Union Pacific special stock
holders meeting over the proposed issue
of 800 600, 900 of preferred stock were con-
verified today in professed hopes of some
extracation at that meeting of special
benefit to stockholders. The street was
without news from the meeting up to the
closing of the market. The Northwestern
and Pacific stocks. however, were the ag-
gressive leaders of the rebound in prices
as they had been most acutely affected
by Tile preceding drop.
The southern group was also notably
strong as they also had suffered more
than the average from the violence of the
reaction from the excessive speculative
advance. Consolidated gas had the bene-
fit Of the failure of the attempt TO pass a
law reducing the price of gas in this city.
The effect of the weakness here yester-
day had an unsettling influence in today $
early foreign market and some action
seemed to be given there also to the fears
oil international friction. The foreign de-
preston of only slight affect upon our
opening market and the recovery set in
promptly. The estimates of the week $
currency movement indicated a nominal
gain in cash by the banks The upward
rush of Peoples gas at the end was due
to the report of the defeat of a gas bill