The Birmingham age-herald., 1907-03-28
THE EARLY ADVANCE
 IS KNOCKED OFF
Demand SIackens at Rise of 3
 to 5 Points
FRIES SHOW WIDE DECLINE
Improved Conditions Still Obtain, But Recent Severe Experiences Were Too Much of Reality to
 Be Quickly Forgotten.

New York, March I.-The action of to- days stock market served as an admonl- tion to any too exuberant fancies about the unrealty of the recent severe ex- periences which the market has under gone. The early spurt in prices, which added 8 to 5 points to the recoveries of from to over points in yesterdays market, had the decided effect of cutting down the buying demand. Without this sustaining force at the higher level there was a backward drift, which did not leave much of the fairly sensational ad vances of the early part of the day There was nothing in the days news to discredit the information which developed to yesterdays improvement in sentiment
 The improved conditions were recog- nized as still extant and the convictions still held that the extensive decline in prices had gone far to measure the un- favorable factors in the situation which had caused 1t. But the violence of the recovery was regarded as taking prices too rapidly away from the proper adjust ment, though the process of adjustment had been somewhat overdone in the de- cline. The positive weakness of several securities was an active factor in curb ing the precipitancy of the early advance The unsupported condition of the Erie s and the wide decline to level, materially lower than was touched in the weaker period of the recent selling, gave clear evidence of further liquidation. The usual sympathetic effect was produced on other Morgan stocks, especially Southern rail way, for which conditions of credit and capital needs are most nearly analogous to those of Erie. The United States steel stocks were also affected. seemingly in sympathy. The companion weakness Of Pennsylvania was not so clearly sym pathetic, unless the liquidation was prompted by the drastic provisions Of the proposed railroad commission law pending in the New Jersey legislature.
 Reports of measures for railroad regu- lation by other state legislatures also served to keep alive the sensltiveness of the financial district to this feature of the activities of the times.
 The money market showed palpabe re- lief, which was attributed to the meas ures taken by the United States treasury department. The extent of the relief which was expressed in the decline ot the rates, left some rather disqueting deductions of what the situation must have been without the effective relief that was afforded The treasury's action was much dwelt upon, perhaps taken as determination by the new head of the department to afford any relief actually called for by the situation. Not only disposal of the accumulation of govern ment surplus but also in the supervisory activities of the controllers of securities has there been subject for large supposed sohcitude by banking authorities over pos sible adoption of new policies by the treasury department. The question was discussed in some quarters of the market today how far the recent developments in the credit situation might have been prompted by arrangements to conform to stricter Interpretation of requirements from the national banking act than has been insisted on in times past. The profit taking, which could be done to advantage at today's higher prices. was increased by the belief that the stock exchange au- thorities would decide to close the ex- change from Thursday until the following Monday.
 The days net changes are mostly small and mingled gains and losses, and the closing tone was quite irregular
 Bonds were irregular. Active bonds were firm but in other issues small lots were marketed only at wide concessions. from previous prices Total sales par value. $2, eco.
 United States bonds were unchanged on call.