Los Angeles herald., 1905-03-25
By Associated Press.

BY Associated Press
NEW YORK, March 24.-There was
a pronounced upturn in the course Oh
prices today, which was undoubtedly
due in part to the closing up OF the
short contracts put out on the decline
during the week.
Yesterdays market already showed
some symptoms that the decline had
run to a point where effective resist
ance was encountered and sufficient
new buying demand was met to sup
port prices. Bears with uncovered
short contracts accepted this warning
and brought it to cover very generally
today There was at the same time a
marked revival in the circulation of
rumors of the same class, and for the
most part identical in form with those
which have already served many times
to excite a demand for stocks.
The strength of New York Central,
Union Pacific and Northwestern was a
notable case in point. The information
disseminated on the break yesterday
was that control of Union Pacific had
passed from it's present hands. Today
the information was renewed that buy
ing of the best character, namely, in
the interest of persons already in con-
troll of the road, was conspicuous in
both New York Central and Union Pa
cific. News or rumors of this character
are of as great effect in the excitement
to speculation as the most explicit an
Inouncement of plans affecting the con-
troll or operation of a property.
The Southern Iron combination was
another project which was paraded be-
fore the imagination of spectators
with proved effect, as shown by the
wide movement in stocks of that group
The long time reports of a merger
of lead interests was another effective
instrument in the upward movement of
i IL j
also played their part, stocks in the
rubber industry being especially affect
ed. The Metropolitan stocks had the
benefit of hopes of success in securing
contracts for further subway in the
efforts making on behalf of these in
terests. Colorado Fuel was still in de-
mand on the strength of its subscrip-
tion rights to new securities.
glance over the list will show the
important part played in the recovery
by stocks thus specified as under in
dividual influences. The reversal of
sentiment under the general market
situation was attributed to a subsi-
dence of fears of stringent money.
The headlong plunge in the price of
foreign exchange was the principal fac
tor in the change of sentiment The
indications thus given of the freedom
with which foreign money resources
are becoming available to the New
Yorl, market proved greatly reassuring
The price of exchange was pro-
nouneed to be within measurable dis
tance of the gold importing point, and
1t was felt that actual need for money
here would lead promptly to an inward
movement of gold. Account was taken,
however of the accompanying sharp
drop in the sterling exchange rate at
Paris, which has fallen three centimes
in the pound in two days past, showing
a considerable increase in the demand
from that center on London.
Estimates of the domestic currency
movement indicated a considerable loss
in cash by the banks on the weeks
movement. which is practically meas
ured by the sub-treasury's absorption
of $3,7S6.000 up to Thursday night. But
the sharp liquidation of the week in
stocks and the large resort had to for
eign lenders is expected to result in a
large contraction in the volume of loans
of the banks, with consequent dimin-
ishment of the surplus item
The profit taking in the last hour was
we'll absorbed, and the market closed
strong and animated at the best prices
of the day.
Bonds were strong. Total sales.
$4420,000.
United States Ss, coupon, advanced
Il per cent on call.