The Birmingham age-herald., 1907-01-20
SEVERE PRESSURE | FROM LIQUIDATION Prices Break Badly Under
 Flood of Selling SUPPORT COMES FORWARD Lack of Explanation of Volume and Urgency of Selling, But Existence
 of Strong Bear Organization
 Obvious-Week's Review.
SUPPORT COMES FORWARD

New York, January 19.-The stock mar Eet underwent severe pressure from Further liquidation today. Prices broke again and again under the renewed flow of stock which was poured upon the mar ket. There was evident determine tlon, however, to protect the market and supporting orders appeared at each de- clne to arrest the downward tendency and rally prices.
 4 The nature of this buying was indicated by it's withdrawal when it had effected sts purpose of steadying the market. It mas not pursued at the advance when prices approached last nights level. The market closed with such a supporting movement in progress. and the tone was consequently strong with a final rally, although extremely feverish and very &C., tive. There was continued lack of any immediate development in the situation to explain the volume and the urgency of the selling
 1t was obvious that a strong organiza- tion of bear operators was active and alert to take advantage of any sign of Weakness, and their raiding tactics wei e effective in dislodging weakened specula- Rive accounts. It was generally sup posed that liquidation was in progress i'll some of the important accounts of long standing, and in syndieated form, which were being thrown over to relieve dn pVerstrained position in the market, and for the protection of brokerage houses. Individual brokerage houses did not escape rumors of money difficulties, and many. vague rumors were kept in COL stant circulation also of a less specific character. Many diligent inquiries were set on foot as result of these condi- tions, and clearing house and banking authorities gave their sanction to assur- anees that no evidence of embarrassment was discernble.
 The principal selling pressure centered pn Reading, Union Pacific, Southern Pa cilic, and after show of strength in St. Paul.
 The n1arKet showed the most acute weakness after the appearance of the bank statement, when numerous offerings Df the stocks above named came upon the ,narket The SIS, ,19S, 900 cash gain by the banks was much in excess of expecta- tions. The 5,l4S,000 loan increase was attributed to large transfer of loans arom London to this market The con ilnued strength of foreign exchange in- dicated an extension of this process Money rates rose also in London. The apparent. concert or un1aNOrable er1tl- efsm of American securities and finance by the foreign press is a depressing fac tor owing to it's probable discouraging ef- feet on any intended purpose by foreign CTS of American securities. An under lying influence on the readjustment ef prices in progess is the contrast of the greater attractions to be offered by new securities, and the disposition 10 provide means for taking them up by liquidation of outstanding securities at a correspond- . inglY higher range of prices.
 sfhe total sales of bonds, par value, was s1,512, GOO.
 Stocks have been actually depressed this week by important liquidation the sources and motives of which have given food for varied conjecture and interpreta- ton There has been a pronounced re- laxation in the former stringency of the money market, and the entire lack of response to tbis improved condition In the stock market has had very dis couraging effect on speculative senti- ment. The successive developments to show the huge requirements in contem- platon for additional capital by the rail- road companies have been regarded IS having a portentous significance and have upset confidence in the suffcency of the available resources to meet these heavy demands.
 There have been a number of striking incidents during the week which served to bring the subject into conspicuous notice, and to reinforce the effect of pre- vious developments in the same direc-