The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-02-03
SOCK FEyERIgH
AND UNCERTAIN
Banking Houses Oppose Raid
ing Tactics of the Bears
RELATIONS WITH JAPAN
First Selling ProfessedIy Based On
Serious Tone of Discussion-GroWth
Of Railroad Operating Expenses.
Review of the Past Week.

New York, February 2.-There was
BONE contraction of the rates of activity
In stocks today and resistance to the re-
cent pressure was perceptible, but the
tone was feverish and uncertain through
out as was shown by the constant fiuc-
tuations of prices. First prices of the
DAY showed wide declines from last night
and large offerings of various stocks ap-
peared They were taken at the low level
and prices rallied.
On subsequent declines the appearance
of buying orders was effective In the
same way. This buying was generally
credited to banking interests with the
purpose of exercising a benevolent con-
troll of the market, and of opposing the
Taiding tactics of the bears. Finding OBJ
Btacles of TINS character to their efforts
TO get prices lower, the bears were dis
posed to cover their short contracts.
Most of the losses were recovered under
this process.
The tone of the market continued fever
ash up to the closing The demand did
mot follow up the advances with eager
ness, and the market became dull on the
rallies. The days news offered no new
developments of Importance. The first
selling was professedly based to some ex-
dent on the serious tone of the public
discussion of the relations with Japan.
An unfavorable impression was caused
by the large growth of railroad operat-
tng expenses shown by reports of Deem
Der earnings the increase being sufficient
In same cases to cause a decline In the
net return compared with last year.
A report was current of an intended
Increase in freight charges by the trunk
lines in
of the mercantile agencies were scanned
Tor signs of any reactionary tendency in
the business world but none such were
reported
Bank clearings for the week are lower
than last year, following a tendency man.
tfest for several weeks past The de-
crease Is accounted for mostly in the
New York figures, and outside the seven
principal cities the clearings still show
q volume wei labove that of last year.
The bank statement was ltue regarded
the cash decrease being smaller than was
expected, and the loan increase causing
no surprise in view of yesterdays sale
of New York city bonds and subscrip-
tlons during the week to new stock and
note issues
The Bank of England was reported to
have secured s2,OOOOO0 of gold to arrive
from Egypt on Monday Foreign ex-
change, although nominal on Saturday,
showed a sagging tendency today. I'm
portance is attached to the attitude to be
taken by the Bank of England in the
event of further demand on London for
gold by New Yari.
Total sales of bonds, par value, 81, 10000
Prices of stocks have receded to a ma
terialy lower level this week, breaking
through the previous low level of the
pr esent decline. and falling to nearly the
low level of last year for many stocks,
which was touched after the disturbance
caused by the San Francisco earthquake.
The initiative for the decline is generally
attributed to an attack by an organized
bear party in the trading, which has
given evidence of extensive resources and
aggressive and skillful leadership. The
success of the attack, however, affords
abundant proof of the vulnerable condi-
ton of the long account.
The fall in prices has brought heavy Of
ferings upon the market by the eXhaus-
ton of margins uncovering stop loss or
ders. and the usual line of consequences
entaed by the turn of the market against
IN extended speculative position. The ex.
tent of the long account and its lack of
strength have proved a surprise to most
observers.
Speculative opinion has been much de-
pressed, and discouragement over the
maintenance of the industrial activity and
prosperity of the country has been gem
orally expressed. The news OF the week
has afforded few important developments,
but these, with a common accord, have
been interpreted to confirm the views of
coming reaction and business depression,
The distinct disfavor towards American
securities attributed to European capital
lists is much dwelt upon as closing the
door of prospects of relief from that
quarter for the heavy capital require
ments which confront our own financial
MT - .a1
tiaI issues in itself seems to intimidate the
European Investor, and the hostile atti-
tude of the public mind towards corpora
tions here is given as another ground for
the discrimination against American in
vestments said to be shown by European
capital.
A consideration of the present market
must allow for n large liquidation al
ready effected and for an important re-