The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-31
)sCOTE DEPRESSION
IN STOCK MARKET
Prices Fall Threateningly in
Late Trading
PRESSURE OF SELLING
Failure to Hold Repeated Rallies Con-
clusively Shapes Sentiment In the
Whole Market-lnroads Into
Penn, Erie and Reading.

New York, January 3O.-Acute depres-
sion developed in the stock market today
and the fall in prices took on threaten
Ing proportions In the late trading. An
appearance of support was given the
market in the early part of the day, and
several successive rallies were made from
the occasional declines. These rallies
carried prices more than once back to
the opening high level, or above, but at
khe higher. level of prices the demand
for stocks flattened out completely CIV
ing warning of the lack of any motive
power In the market to effect an ad-
vance.
The high opening seemed to be due
largely to the influence of the favorable
quarterly statement of earnings of the
United States steel corporation, which
was not published until after the close
of yesterdays market. Any expectation
of an increase in the dividend rate had
been definitely abandoned before the
meeting.
The informal remarks on conditions in
the trade by the chairman Of the board
of directors of the corporation and his
explanation that the orders ahead were
not subject to cancellation, as was for
merly the custom. tended to emphasize
the force of the showing. rhe opening
advance of &c In the price of the stock
Immediately attracted such pressure of
selling orders as to effectually demon
strate that eager advantage was taken of
the stimulating effect of the report to
market large holdings The first price
was the highest of the day, and although
the stock showed occasional resistance to
the pressure on the general market, its
failure to advance was conclusive in shap-
ing sentiment on the whole market.
The Idle condition of the trading at the
rallies was apparently allowed to work
its impression on sentiment, ana the bears
collected their forces for renewed attack
on the market. Successful inroads were
made at first in a few prominent stocks,
notably Pennsylvania and Reading The
yielding tendency of these stocks af-
fected the whole market by sympathy,
and the weakness spread as the domi-
nancy of the bear party became obvious.
The whole market was undermined I'LL
timately, and the crumbling of prices
wiped out margins, dislodged stop orders,
and brought stocks on the market in a
deluge. There was no special news to
account for the break beyond the cumu-
1ative influence OF the foreDodngs which
are felt of coming industrial and bus
mess reaction. The extent of the ac-
count on the long side Of the market was
unexpected and assumptions of the
strength of these holdings were proved
unfounded by their vulnerabllity to the
bear attacks. A variety of rumors in
evitably found currency by reason of the
violence of the break, and some of these
revealed the activities of the bears In ag-
gravating the uneasiness of stockholders
Reports were current that some of the
recent railroad note issues were being
sold at sacrifices to realize funds. It
was alleged that the whole of the 42-
100000 of government funds last deposited
with the national banks was taken up in
February instead of the sf2. 600 900 defined
by the treasury department.
The fierce raiding tactics of the bears
left a large short interest to be covered
at the last and this was the cause of
the feverish rallies. Otherwise the mar
ket closed unsettled and in disorder.
Bonds were heavy, Total sales par
value. s1,674O00
United States bonds were unchanged on
cali