The Birmingham age-herald., 1907-02-27
6TOP THE DECLINE
 IN STOCK MARKET But Recovery is HaIting and
 Uncertain LOW LEVELS ARE REACHED Forced Liquidation Is the Obvious Ex- planaton-The Brokerage Houses
 Either Strengthen or Re- duce Accounts.
LOW LEVELS ARE REACHED

New York, February 26.-The rapid de- flining tendency of stocks which was
 manifest yesterday was arrested quite
 promptly today, but the subsequent move
 ment towards recovery was halting and
 uncertain. The activity of the dealings
 subsded to a marked degree. The recov- ery did not set in, however, until a threat ening break in prices at the opening, which made level of prices that added
 many important market leaders to the list of low prices for the year.
 Compared with the low prices in Janu- hry, however, there was but a small frac- | |tional difference in the majority of in stances. The strength of the resistance de- veloped at that particular point proved particularly formidable to the contestants
 for lower prices owing to the usual reas- .oning of professional operators from the technical conditions in the market. A break in prices after a temporary recov- .ery, such as that which occurred in Feb |ruary is expected to gain momentum |after getting lower than previous de- |clines had carried prices The obvious eX- |planation is that speculative accounts
  margins come freshly into the necessity |for forced liquidation when the previous Dow level of prices is exceeded.
 Increased resistance at about the pre- Ivious low level, on the contrary, leads to Ian inference that accounts previously vul- |nerable have been strengthened either by Furnishing additional margins or by re- |ducing the holdings in the course of the Temporary rally. It has been a subject of general discussion that both of these pro- |cesses have been in progress since the first of the year. Brokerage houses have |avowed their determination to strengthen the position of accounts with them or to |reduee the accounts.
 When prices opened lower at the stock |exehange this morning there appeared |buying orders for execution by brokerage houses which are credited with operating for some of the great capitalists associ- lated in groups. This produced an i'm |pression on the minds of professional op- |erators that effective support was de- |signed for the market. Lending money on |call by houses of the same character sug |gested a sold-out condition in stock hold ings. At the same time the demand for |StockS 11S the loan crowd was keen and re- suited in a shading of the money rate in order to secure certain active stocks for |deivery
 The over extension of the short ac- |count was an inference from these facts, and the bears were prompted to reduce their lines in consequence. The turn in the market was traeeable through these in- |dieations to almost wholly technical causes. There was in fact no important occurrence to account for the change in the course of sentiment.
 Some influence was due to the approach ing termination of the examination of E. H. Hartman before the interstate com merce commission as the speculative mar lSets are not expected any longer to be affected by a completed episode. Reports from Washington received in Wall street were of more hopeful prospects for the Aldrch bill, and this made a cheerful effect on sentiment. The improvement gathered force as the day progressed, and last prices were near the best and gen erally well above last nights. Money con tinued quite firm, and foreign exchange also was firm on account of the sales of stocks here for foreign account
 Bonds were heavy.
 Total sales. par value, $1 1,474,000.
 United States new As, registered, de- ciined Il per cent on call.