The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-05-23
SLIGHT RALLY
IN WALL Street
Bears Spread Themselves Out
and Were Forced to Cover
Late in the Day.
MARKET CONTINUES DULL
TUESDAYS LOSSES WERE NOT
ALL RECOVERED.
MARKET CONTINUES DULL

New York. May 22.-The fall In prices
o. stocks. after proceeding to some length
=. today, encountered effective resistance
and was followed by a substantial rally.
The tone OF speculative sentiment con-
tinued very uncertain as was evident
from the hesitating later movement OF
prices. The check to the decline seemed
to be due in large part 70 the headlons
activities OF the bears, made bold by the
success of yesterdays attack on prices.
Similar tactics today proved less sue
cessful in forcing stocks upon the mar
ket, and the bears were driven 10 reDuy
on d large scale that they had sold in the
early part OF the day the buying beeom-
ing urgent toward the close. Ihis was
believed TO account for most of the de-
mand which was active in the recovery
from the threatening break at the first.
The subsistence into dullness on the raj
Hes pointed TO the bear source OF the
buying. Some of the buying was for
London account, based on the arbitrage
profit betweea the two markets There
was no sign OF any awakening in the de-
Taand for stocks and the investment de
mand continued to grow for stocks and
bonds.
The question OF new securities issues
continued 10 be actively discussed and
rumors on this topic were influential fac
tors in the early attack of the bears.
The Vanderbilt group, led by the New
York Central, were all affected in this
way. announcement over night of a So
0e0,000 note issue by the Cleveland, Gin
cincinnati & St. Louis forming the basis
for reports OF heavy issues by other com
panies in the system These reports
lacked confirmation beyond the candid
admissions of banking houses that a gen.
eral rule OF need for additional capital
exists among the railroad companies A
savage onslaught upon Reading was
another feature Of the attack
Conjecture continued busy over the
source of the heavy liquidation which has
days, and prominent individuals were
mentioned as sellers. Calling of loans
by banks outside of New York was said
10 be a factor in the urgent selling which
has come out this week.
Reports of a large personal loan ne
gotiated by a capitalist prominent in the
metal and mining industry were made the
basis for inference of liquidation for that
account. The heavy selling of United
States Steel was thus accounted for, AMI
also of a disposal of holdings growing out
of an expected official change in the
company. Clearing up OF accounts of
firms preparing to dissolve was another
assumption to explain the liquidation
which really remains much of a mystery.
That the selling represents belated eff
1ects of the March tumble in prices is
the general belief in the financial dis
trict. individuals of known wealth were
able TO evade the immediate effects of
the collapse at that time by the use Of
their high credit, but only on condition
that more favorable opportunities would
be taken advantage of TO reduce their
obligations. The demand for capital would
indicate requests for reduction of such
borrowings Some such operation is be-
ieved TO account for the sudden inflow
of securities for sale this week.
There was no immediate development
of Importance in conditions today The
situation in the foreign exchange mar
ket left the question of gold exports I'M
decided The fall in sterling exchange at
Paris and the hardening of London dis
count rates was offset by the fall In
sterling exchange here
The grain markets derived their great
est share of strength from foreign crop
news today, and were of less effect on
stocks. The obvious subsistence of the
pressure of liquidation caused growing
uneasiness among the bears. and there
was something like a scramble amongst
them to cover shorts in the late deal
ings. The substantial net gains for the
day which were thus produced were not
sufficient to make up all of Yesterdays
losses.
Bonds were irregular. Total sales, par
value. 8, $500
United States IS coupon advanced X
per cent on call.