The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-03-21
VIOLENT RALLY IN
THE STOCK MARKET
Action in Street Demonstrates
DistruSt of Values
TRADE is DlSAPPOlNTI ING
Suspicion Is Factor In the unsettle-
ment Which Still Hangs About
the Market-Money
Market Easisr.
TRADE is DISAPPOINTING

New York, March 20.-The action OF
the stock market today was accepted as
a demonstration of the profound distruss
of values which has resulted from the
smash in the securities market. There
was a violent rally at the outset from
the depression of yesterday, and the fears
which were general yesterday that some
important failures were imminent as
consequence of the stock market slump,
had subsidized to a large extent. Little
was heard of yesterdays rumors. In
fact it became quickly obvious that the
demand which put up prices was of
strictly professional character, and that
the higher prices were taken advantage
of for the free marketing of stocks.
In a few stocks this selling had the
appearance of forced liquidation, and it
was taken for granted that further closing
out of long accounts was in progress.
1t was not that, however, which had the
most discouraging effect on speculative
sentiment. Rather it was the prostration
of the demand at any level OF prices
thus far touched The supposition was in
duced that buying at the first declines
which was attributed to so-called bargain
hunters, and which would be presumably
taken out of the market, was IN fact
designed simply for profitable turn in
the market on its first rebound from the
violent declines.
Dealing of this kind and foreign &C
counts have proved disappointing and
have come back upon the market IN
volume almost equal to the purchases
on the decline. Moreover the demand at
renewed declines proves much less Ell
fectiye than on the first downward plunge
The more deliberate downward movement
seems to be feared more than the panic
break for the greater lack OF resistance
which it may show. The mysteries OF
the sources of enormous sales, and the
corresponding losses which are presum-
ablv from last weeks market as cui-
mination of the previous heavy decline,
are not vet cleared up. TINS helps 10
confuse the attempted explanation OF the
cause of the forced selling. The GROUNDS
for the present conditions IL the world 5
financial markets are in fact not yet
clearly understood. The point in the sit
uation which is out of joint remains OBJ
seure.
That the situation is out of joint makes
the doubt over the cause more impressive
in begetting caution and conservatism.
Opinions are much mixed as to the rela-
five importance to be allowed TO sunury
factors in the present situation, including
tfghtness of money in the strict sense
which is world wide, and actual short
ness of capital as distinguished from
money to meet huge demands for new
outlays. a distrust on the part of capital
of the credit of corporation agitation in
causing this distrust and the part played
by the large output of gold in dislocating
previous relations in prices, interest rates
and other standards which form the
basis for financial and commecial opera
ton. In todays market there was be-
sides some fear that special developments
oyerhung the market with which it would
still have to contend in effecting any re-
covery Stocks which have lain DOR
mant through all the disorder of the
panic period, but which are seldom sub
iect to conditions and influence of credits,
were under observation during the day.
Explosive possibilities were suspected in
at least one such stock.
Suspicion was factor in the unsettle.
ment which still hung about the market.
The money market continued to work
easier. but the passing of the April |
settlements both here and abroad is
somewhat dreaded.
Sterling exchange continued to decline
broadening the apparent profit of the
engagement of gold abroad for import.
The extreme fluctuations of the day from
the opening high level to the depth of
the reaction were wide. The days
changes in some of the most active stocks
are limited to small fractions.
Bonds were irregular. Total sales, par
value, So, 100000. United States bonds un-
changed on call.