The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-05-15
STOCKS ADVANCE
THEN DECLINE
Soon After Opening Prices Go
Very Much Higher
HEAVY SALES FOR PROFIT
Several Railroad Issues Are Within
Highest Point Ever Reached But
They Do Not Garry other
Stocks With Them.
HEAVY SALES FOR PROFIT

New York, May 14-Prices were high
again today at the Stock Exchange, but
the selling under cover to realize profits
which has been feature of the market
all through the week, even at its pc
RODS OF greatest apparent strength, was
pushed steadily and persistently. The
market was undermined and turned weak
after a show OF strength in the first
hour that was more consistent and COM
prehensive than at any time previously
this week. The leading speculative stocks
all moved upward in concert in con-
trast with the irregular and conflicting
movement of recent days. This imposing
demonstration seemed to represent the
last efforts of the supporters of the mar
ket to make Roadway against the forces
OF reaction. The rise was slightly ex-
tended after the opening, then halted,
then sagged slowly and gained Roadway
until the sharpest advance for several
weeks was In progress.
There was nothing in the news to ac-
count for the decline, which was uni
versally attributed to technical causes in
the speculative situation. Prices have
been carried, for'one thing. to the highest
level touched since January of 1907. There
are prominent examples in the list of
stocks that have touched record prices
this week. notably amongst the high
priced coalers. Such speculative leaders
as Union Pacific, Southern Pacific, Read
ing and United States Steel are within
a few points OF the highest prices ever
reached. These facts have been pointed
out with some persistence in the last few
days and attracted discussion of the basis
for such prices.
The recent speculation has been shap-
ing to the assumption that this country
was moving to an era of prosperity which
would excel all its past history in that
respect. The strength of this conviction
is witnessed by its efficacy in carrying
up prices to their present levels at
stage of the business revival which adj
mittedly is yet very immature. This week
has brought more tangible evidence
of the revival than has yet been seen.
The speculative seem to have decided
that these favorable signs in business
furnish advantageous opportunity to
harvest the profits accrued In the stock
market. That was the only apparent
move for the heavy liquidation today
There was something striking in the
unanimity with which the leaders in the
banking and railroad industries expressed
their hopefulness today over the bust
ness prospects. The news of rains in
the southwest was regarded as affording
important relief from the threatened harm
to the crops and optimistic views of the
crop outlook from President James ].
Hill of the Great Northern railroad re-
reived a good deal of consideration. Heavy
sales of copper were reported. Foreign
influences were favorable to the market,
the subsistence of anxiety over the French
I'll hot, n Inf for Flra
belief that important new financing of
some of the railroads was in contempla-
ton fostered the idea tEat the important
banking interests would support the mar
ket with determination. Even the money
outlook gave less concern than for some
days past.
The time loan market was called some
what easier and the preliminary estimates
for the weeks currency movement indi-
Gated the largest balance of receipts over
shipments in the interior for any week
of the season. The hardening of time
money rates earlier in the week seems to
have attracted this inflow. London ad-
vices point to some borrowing there for
New York in spite of the demand by
London for our gold supplies. The for
eign borrowing would tend to relieve the
loan account of the New York banks.
In spite of this large preponderance of
influences favorable to value, prices
slipped away with increasing velocity.
The shorts caused a vigorous rally when
they bought to cover at the end of the
day and the closing tone was steady
with the worst of the losses recovered
Strength in foreign exchange pointed to
further gold exports. London sold stocks
here. The foreign trade statement for
April shows the effect of the continued
heavy exports combined with falling off
in exports in the shrinkage of the ex-
cess of exports to a value of $780, ISL,
compared with s45.92O.129 in April of last
year.
Bonds were irregular Total sales, par
value, $5,550,000.
United States bonds were unchanged on
call