The Birmingham age-herald., 1907-05-23
l. SHECK DECLINE IN THE STOCK MARKET Bears Rush to Cover Toward
 the Close
 NEW SECURITIES ISSUED Tone of cnaouIafiua Sentiment COntin-
Tone of Speculative Sentiment contin. ues Very Uncertain-MoVement Shows Hesitation-Strength
 of Grain Market Abroad.

New York, May 22.-The fall in prices of stocks after proceeding to some length today encountered effective resistance and was followed by substantial rally. The tone of speculative sentiment con tinued very uncertain, as was evident from the hestating later movement of prices The check to the decline seemed to be due in large part to fthe headlong activities of the bear party made bold by the success of yesterdays attack on prices. Similar tactics proved less suc- cessful in forcing stocks on the market and tho bears were driven to rebuy on large scale what they sold in the early part of the day, the demand becoming urgent toward the close. This was be- leved to account for most of the demand, which was effective In the recovery from the threatening break at the first. The subsistence into dullness on the rallies pointed to the bear source of the buying.
 Some of the buying was for London accounts based on arbitrage profit be- tween the two markets. There was no sign of any awakening in the demand for stocks and the investment demand con tinued to be rapid, both for stocks and bonds The question of new securities issues continued to be active and the rumors on this topic were factors in the early attack of the bears.
 The Vanderbilt group, led by New York Central, were all affected in this way, announcement overnight of $5,00O00O note issue by the Cleveland, Cincinnati, Chicago and St. Louis forming the basis for representatives of heavy issues by other companies in the system. These reports liked confirmation. A savage on- slaught on Reading was another feature of the attack, conjecture continued busy over the sources of the heavy liquidation, which come on the market in the last few days and prominent individuals were mentioned accurate sellers Calling of loans by banks outside of New York was said to be factor in the selling, which come out this week. Reports of large personal loan negotiated by a capitalist prominent in the metal and mining in- dustry were made the basis for infer ences of liquidation for that account.
 The heavy selling of United States Steel was thus accorded for and also by sup positions of a disposal of holdings grow ing out of an expected official change in the company. Clearing up of accounts of firms preparing to dissolve was an- other assumption to explain the liqui- dation which really remains much of a. mystery That the selling represents. be- lated effects of the March tumble in prices is the general belief in the field district Individuals of known wealth were able to evade the immediate effects of the collapse at tha ttime by the use of their high credit but only on condi- ton that more favorable opportunity would be taken advantage of to reduce their obligations.
 The demand for capital would indicate requirements for reduction of such bor- rowings. Some such operation is believed to account for the sudden inflow of se- curities for sale this week. There was no immediate development of importance in conditions today. The situation in the foreign exchange market left the ques- ton of the gold exports unrendered. The falling sterling exchange at Paris and