The Birmingham age-herald., 1907-10-22
NEW CONFIDENCE
 IN STOCK MARKET Prices Rebound Quickly After
 Troubles End DANGER SIGNAL IS HEEDED Elimination of Undesirable Element in Financial Quarters Restores Feeling of soVdity in Finances
 and Averts Peril.
DANGER SIGNAL IS HEEDED

New York, October 21.-The dlligent labors of the clearing house authorities during the closed period of business ac- tivities over Sunday bore fruit today in a prompt and decisive accession of con- fidence. The stock market righted itself like ship over which squall has passed and prices all through the list started upwards and in some instances relatively went many points above last weeks de- clines. The field of troubles in the ranks of New York banks was generally un- derstod this. week, but the force of the depression Which this exerted was caused by the fears that the troubles must event. ually proceed to continuation and threaten the involvement of the general banking situation. conviction was lacking of the power of the clearing house to right the difficulty. The measures adopted over Sunday showed so clearly the resort to the strong hand to root out the condi- tions which were causing apprehension that much of the fears were deposed.
 The troubles was recognized to be one principally of personal methods, and with the elimination of the persons objected to, the objectionable methods were be- lieved to be effectively done away with. The authoritative pronouncement of the clearing house committee that the banks under criticism had been solvent, after Examination, and that assistance would be rendered them to meet their obliga- tions, removed the principal fears of im- mediate Consequences. The lack of con- servative banking methods and the rapid extension of banking control by the new element, which has been curbed, has been a subject of disquiet for long time past. By process equivalent to what stock operators call "pyramiding" and by use of one banks stock as collateral for se- curing control of another rate of ex- tension was threatening which would in- volve wide consequences in time of finan- eial stress.
 The United Copper episode last week, involving clumsy attempts at market manipulation and employment of banking resources in futile speculative maneuvers, proved a danger signal. The necessity of the appeal for assistance to the clearing house, which grew out of the distrust aroused by that discredtable episode, threw power into the hands of the clear ing house to dictate the terms. The out come is regarded with a satisfaction which was unmistakably registered in the dayS events, including the buoyant re- bound in prices of securities in the stock market. The opinion of the financial world was of a peril aveI'ted and of wis dom and authority asserted for the bet terment of abuses
 The rebound in prices of stocks was at tributable in large degree to the ne cessity of an uncovered short interest, which operated boldly last week on the assumption that events were running to a catastrophe. Demand beyond this was under some reserve. There was the recognition that the course marked out for the correction of the banking situ- ation here, salutary though it is recog- nized to be. may involve some further euttng-eul process. which will make for further pressure on the market.
 In the stiffness of S1e call loan rate