The Birmingham age-herald., 1910-07-30
PRICES REACT IN
 THE STOCK MARKET
Recent Advance Appears to
 Have Been Too Rapid
DEMAND IS NOT LARGE
Holdings in Rock Island Stock Is to Cause some Weakness on
 the Part of Buyers

New York, July 29.-The stock mar ket today showed the effects of the rapid pace at which the recovery has been going on from the acute depression of the early part of the week. The usual after results of a sudden and violent turn in the market began to appear. Sups1antial reduction of the short in- terest diminished the urgency of the eemand and made it less easy for the opposing speculative party to bid up prices. A more substantial demand from those seeking to secure actual holdings or stocks also fell away with the move ment of prices away from the inviting low prices when the turn came.
 Recovery from that low point has been 50 extensive and rapid that attractive profits have accrued for those who bought 10 advantage and the consequence was considerable volume of realizing sales, which, with the falling off in demand aHected prices. A frmer tone was re- covered after the reaction.
 This action of the market had the in- evitable effect of modifying speculative opinions of conditions in themselves un- changed. This was seen in the sugges- ton of flaws in the effectiveness of the settlement of the Pearson syndicate difficulties. The question was heard whether the concentration of power oyer other railroad systems of the country, which would result from the surrender or that syndicate's large banking inter ests, already affiliated with rival and competing interests, might stimulate re- newed agitation against the power of centralized capital and induce more stringent measures of legislation for the depression of these tendencies
 The determination to discontinue divi- dends on the Atlas Portland Cement stock was used to contest the rise in prices. The incident scarcely lends it. self to a supposition of declining busi- ness as the possession of large contracts with the government for Panama canal supplies makes it necessary to divert re- sources for increase of capacity The special nature of these contracts also detracts from their importance as show ing any sign of general trade expan- sion.
 As an evidence of the difficulty of en- listing new capital in enterprise. how ever, the incident has real importance The point is accentuated by the persist ent sluggishness of the demand for bonds Tn spite Of growing abundance of re- sources in the money market In spe- cial stocks the misgivings over the main tenance of dividends were at work again The slump of points in oss-Sheffield Steel recalled the National Lead dividend episode.
 Preliminary estimates of the week s currency movement gave a rate of in- flow to New York bank reserves that carried it's suggestion of decreasing trade requirements for money. The gain for the week from various sources seems to have reached an aggregate of over s12,- 0o000o. Drastic liquidation of the earlier part of the week would be expected to
 
 hut the syndicate transactions which came with the later settlements would affect the other side of the account. For mation of currency association by the New York banks passed almost without notice
 Bonds were firm. Total sales. par value. $2,9S40O0. United States bonds were un- changed on call.