Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-08
NEW YORK STOCKS AND BONDS
Early Market Active and Higher on Heavy
Buying by Shorts,
PRICES BECOME IRREGULAR AND LOWER
Reading IL Higher on Prospective
settlement of Anthracite strike
Lake strike UpfavorabIy
Affects steel Issues.

NEW YORK, May THE course Of to-
days stock market demonstrated how
largely the outstanding short interests had
been reduced in the course Of the violent
sion. In Reading the recovery from last
weeks low point to todays high point
reached nearly Is points. With the salts
faction Of the demand from shorts, the mar
ket fell into duh condition and showed "A
heavy tone until the irregular after-rally.
The advantage against the bear party was
extended considerably by the action Of the
miners convention on Saturday making a
settlement without strike practically GER
tain. The influence of this factor was car
ried over into today's market and made
Reading strong and very active The fever
ish fluctuations in this stock gave ample
indication OF some very active manipulation,
which was directed against the more per-
sistent bear position in the stock The ad-
vance in Reading had a sustaining effect ON
the general list while IL lasted. The sag
ging tendency became manifest, however,
when Reading reacted. A progressive sub
sidence Of activity and Of the range of
fluctuations in prices is the normal result
Of such a spasm OF liquidation as that which
eliminated last week The bear opera tors
over extend themselves while the liquida
ton Is in force and when the forced selling
is over they find themselves under the ne
cessity of buying stocks to cover shorts
on rapidly rising scale Of prices. Buyers
at the bottom then come in to take profits
and the process repeats itself on a decreas-
ing scale until the operations in the market
lapse into the hands of professional trad
ment occurs to give a new impulse to spec
ulation. Sentiment I'm the financial district
at present is favorable to a pause I'm spec
ulative activity for the clearing up Of the
situation.
The money market shows evidence of re-
lief by reason of the drastic liquidation
effected we'll as by the heavy flow Of gold
to New York from abroad The settlement
Of the coal labor dispute is regarded with
emphatic satisfaction in its bearing on the
confirmation Of the soundness of the general
business situation. More attention was
given today than heretofore to the subject
OF interruption of the lake trade by the
strike of 'longshoremen The unfavora bic
effect upon the iron and steel Industry was
a subject of consideration. Western roads
for the first time in many months admitted
a falling off i'm traffic in spite of some extra
business on account of supplies for san
Francisco.
The activity of farmers in the fields was
given as the sufficient explanation for the
decline in the volume of traffic, but ITS
conceded existence was noted, nevertheless
| I'm the formation of the days speculative
opinion. The days sub-treasury operations
| showed a large gain for the banks reaching
! for the new banking with $,95O0O. This
was largely due to belated accounting OF
gold import operations and served to rec
! tify i'm part the discrepancy in the cash
item of the bank statement with the known
movement of money. London discounts
were firm today and sterling exchange
moved i'm favor of London both here and at
continental points. Reading. after losing
nearly all OF its loss. rose to the best and
reasserted its influence in the general mar
! ket. prices at some points rallYing to the
top. But the recovery again failed to hold
and the market closed IRREGULAR.
Bonds were Irregular. Total sales, par
| value 2,ll0OC0 United states bonds were
! all unchanged on call.
The following was the range of prices on
| the New York Stock exchange: