The Montgomery advertiser., 1907-05-23
THE STOCK MARKET
FALL IN PRICES ENCOUNTERED Eft.
FECTIVE RESISTANCE.
The Check to Decline Seemed to be Due In
Large Part to the Headlong Activities
Of the Bear Party Made Bold
By Successful Attack on Prices.

New York. May 2s.-The fall in prices Of
stocks after proceeding to some length to.
was followed by a substantial rally. The
tone Of speculative sentiment continued very
uncertain as was evident from the hesitat-
iug later movement OF prices. The cheek
TO the decline seemed to be due in large part
to the headlong activities OF the bear party
made bold BY the success In forcing n
stocks on the market and the bears were
driven to rebuy a large scale what they
sold in the early part of the day. The
This was believed to account for the most
Of the demand. which was effective In the
racovery from the threatening break at the
start The subsistence into dizziness on the
rallies pointed to the bear soutce of the
buying,
Some Of the buying was tor London nc-
me two markets; There was no sign pn
any awakening in the demand for stocks
and the investment demand continued tor
pid. both for stocks and bonds The ques-
ton of new securities issues continued to De
actively discussed and rumors on this topic
were influential factors in the early attack
New York Central were all affected In this
way. announcement over night of $4,000
900 note issue by the Cleveland. Cincinnati.
Chicago & st. Louis forming the basis for
reports of heavy issues by other companies
In the system. These reports lacked con-
firmation beyond the candid admission OF
banding authorities that general rule of
need for additional capital exists among ths
companies. A savage onslaught on Reading
ure continued busy over the sources of the
heavy liquidation which come on the mar
ket In the last few days and prominent in
dividuals were mentioned asJ sellers.
Calling of loans mby banks outside of New
York said to be factor in the urgent
selling which has come out this week; Re e.
q capitalist prominent in the metal and
mining industry were made the basis for
The heavy selling of United States Steel
was thus accounted for and also by supposf-
tions Of disposal of holdings growing out
of expected official change in the com
pany Clearing up of account of firms
preparing to dissolve was another assump-
ton to explain the liquidation which really
selling represents belated fleets of the
March tumble in prices is the general belief
in the financial district s;t dndtvid val , Of
mediate effects of the collapse at that
time by the use of their ash credit bui
only on condition that more rsxorabie op-
reduce their obligations
The demand for liquid capital would fndi-
cate requests for reduction of such borrow
ings Some such operation is believed to
account for the sudden inflow Of securities
for sale this week. Their YES no imme-
ditions today. The situation. the foreign
exchange market left the question of the
gold exports undecided.
The falling sterling exchange at Paris and
the hardening fthe London discount rate
was offset by the fall in sterling exchange
here. The grain markets derived their
greatest share of strength from foreign crop
news today and were of correspondingly
lessened effect on stocks. The obvious sub
sidence of .he pressure of liquidation caused
growing uneasiness among the bears and
there was something like scramble
amongst them to cover shorts in the lato
dealings
The substantial net gains sch were
thus produced were not sufficiei.. to make
all of yesterdays losses.
Bonds we're irregular Total sales par
value $f,56s,o00. United States IS coupon
advanced y per cent. on call.