The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-05-01
STOCK MARKET
MAKES A RALLY
Large Offerings Were Taken
Without a Break in
Prices.
BEARS DRIVEN TO COVER
LAST PRICES WERE NEAR THE
TOP.

New York, April 30.-The stock market
made an effective rally today against the
forces that have been pressing severely
upon it ever since the San Francisco dis
aster- The markets bad period was in
the hrst hour, when heavy liquidation
seemed to be absorbed in continuation of
last weeks movement Vigorous support
was persisted in and resulted in large
offerings that came on the market being
taken without allowing prices to break
WIN the success of the support was es-
tabIlshed considerable buyina demand
from the uncovered shorts. The resort
10 ulspIay advertising in behalf of the
campaign of the bears was regarded as
lhdlcatlng an extension of the short in
leFeSl TO proportions which gave good
promise of potential support for the mar
ket IL the attack were resisted The re-
suit justified the supposition. Buying on
large scale was attributed to bear &C
count Tor some of the stocks that suffered
most acuteiy in last weeks slump
Inc success in arreSting the decline in
prices also had the effect of avoiding a
large amount of threatened LIQUIDATION 1t
was reared that the forced selling of last
week Of weakened speculative accounts by
reason of the exhaustion of margins and
lnablllty to afford additional supplies
would cause other similar accounts to
come tumbllng after today. 1t was the
perception of this danger that prompted
the vigorous supporting measures in the
market by banking interests with vital
interests IN preventing the market from
falling into decentralization. The time
seemed prOpltiOuS for supporting the mar
ket because the liquidation on account of
insurance companies desiring to realize
on their assets tended to decrease as
prices went away from a desirable level.
Calls for additional margins sent out at
the end of last week had the consequence
of bringing in selling orders from wide
~ separated sources this morning. But
there were no such unwieldly accounts to
let go as those of some of the great spec
ulative plungers which were hurled into
the market last week and which broke
prices. BY the end OF the first hour it
was known that all clearing sheets had
passed the stock exchange clearing house
successfully, thus demonstrating that no
failures were caused by last weeks break
in prices.
The volume of business contracted con-
Siderably on the recovery and speculative
sentiment towards rally showed a de-
gree of reserve. Effective support has
been so often followed on various occa-
SionS since the San Francisco losses bv
renewed liquidation that board room
operators were on constant lookout for
evidence that long stock We're coming out
again. The doubt whether the neceSSar ~
measures of adjustment to the San Fran
cisco losses had been completed was rep
resented in this SUSPICIOUS attitude of the
speculation. The longer the DELAY the
more suspicious attitude felt towards il
tended to he dissipated. There was no
important change in actual conditions be
NOnd the progress made IN the neceSSar ~
adjustment in the San Francisco losses
the measures remaining to be taken
naturaIlV decreasing in the proportion of
those that have already been accom-
pliShed. The stream Of currency move
ment to San Francisco ont of New York
continued on 2 large scale TODAY. but is
offset nv still larger stream OF incOm-
inc gold imports.
London discounts hardened today in
response to the demand UDOn that center
for gold. and result the Bank Of
England discount rate is expected