Los Angeles herald., 1910-07-28
MARKET RALLIES;
STOCKS ADVANCE
Prices Suddenly Go Leaping Up
ward, and the Buying Is
Very Heavy
OPERATORS ARE OPTIMISTIC
U. S. Steel Report and Demand
from Shorts Cause a
Strong Reaction
Associated PressN

NEW YORK, July 27.-The action Of
the stock market underwent a Vio-
lent reversal with prices advancing
by leaps and bounds where, yesterday.
they were breaking without signs OF
resistance. Speculative sentiment un-
derwent a corresponding transforma-
tion, but with the usual confusion pc
tween cause and effect. The extensive
liquidation accomplished yesterday af-
forded great relief in itself and to this
was added, according to current ru-
NOR some important private settle-
ments by which embarrassed accounts
were taken over and the necessity thus
avoided of continuing the sacrlnce OF
securities in a market in which the
demand had become we'll nigh para
lyzed.
The brighter feeling, due to these
reports. was enhanced by a clearer
perception of the local nature OF the
acute trouble which was forcing liquid
alton. III place of the supposed VIDE
spread sources of the selling, based
on general discouragement with the
situation of trade and money markets
there emerged the conviction that
confined area represented the limits
of the trouble, A renewed slump IN
Rock Island preferred to 54 early IN
the day was accepted as one index OF
the source of the difficulty. Many ru-
lnors became current of the shlttlhg OIL
large newly acquired holdings of Varl-
Gus railroad stocks, reaching out from
the eastern anthracite and trunk line
field and into western and southwest
ern connections in the pursuance OF
an ambitious project OF extension ana
merging. In addition to this source
of weakness 1t was surmised that over
extension in the high capitalization OF
various new copper properties, sihall
individually, was in process of correc-
tion.
So severe a decline as has been wit
messed in the last ten days is accom-
panied inevitably by large expansion
of the short interest in a market.
Usually nothing checks this shor'
selling but an actual turn in the prlce
movement itself. With that enecteu
the demand becomes urgent. Such was
the case today, the demand from un-
covered shorts making up substantla
part of the large demand and the up
bidding of prices Testimony was or
fered by some of the commission houses
of a material growth of investment ue-
mand as well, attracted by the low
level to which prices had fallen ana the
inviting rate of return at1orded IN con
sequence by dividend payments. Lon
don ioined actively in the days buying
on a sufficient scale to affect the foreign
exchange market. subsistence or tnt
forced liquidation relieved that marker
of apprehensions in connection with the
stock market settlement in progress.
An example of the reversal OF specu-
Iative form was found in the prefer
ence shown for the item of earnings IN
the United states steel quarterly re-
mort over that of the untitled tonnage
on hand in the selection of topic tol
discussion. The increase In the earn
ings over anticipations was pointed ou'
as matter for encouragement, while
little attention was paid to the excess
over the estimate of the decrease III
unfilled orders on hand. Expressions
Of confidence emanating from the stee
directors meeting and the opinion OF
the quarterly report in the Iron age
served to stimulate more hopetu
feeling. There was repetition also ol
the report of agreement to reduce pro
auction by the principal copper. pro,
ducers and an advance in the price OF
that metal
THE wild advance in the cotton mar
let failed to destroy the increased in
terest manifested in the stock market
rThe hazardous state of a part or th'
corn crop also lost its influence TOT tht
time being. u..o, o,oa
bonds were stronger. Total sales
,,ar value. SS90,000. United States bondS
were unchanged on call