The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-28
9|OLENT UPTURN IN
{ PRICES OF STOCKS
Speculative Sentiment Turns
i. to the Bull Side
OUTLOOK IS BRIGHTER
Many Rumcrs Are Current of Shifting
of nrge Holdings In Newly Ac-
quired Railroad Stocks But
Nothing Develops

New York, July 27.-Today's stock mar
het underwent violent reversal. with
prices advancing by leaps and bounds
where yesterday there was breaking
Without a sign of resistance. Specula-
tive sentiment underwent correspond
Ing transformation, but with the usual
confusion between cause and effect The
extensive liquidation accomplished yes
terday afforded great relief in itself. and
to this was added, according to current
rumor. some important private settle
ments by which embarrassed accounts
were taken over and the necessity thus
averted of continuing the sacrifice of Sc
curities in a market in which the demand
had become well-nigh paralyzed.
Brighter feeling, due to these reports,
was enhanced by clearer perception
of the local nature of the acute trouble
which was forcing liquidation. In place
II the supposed widespread sources of
selling based on general encouragement
with the situation of trade and money
markets, there emerged the conviction
that confined area represented the
limits of the trouble. A renewed slump
n Rock Island preferred to 81 early in
the day was accepted as one index of
he source of the difficulty.
Many ruInors became current of the
shifting OF large newly-acquired holdings
Of various railroad stocks. reaching out
from the western anthracite and trunk
hne field and into western and south
western.
In addition to this source of weakness,
It was surmised that an over-extenson
Of the high capitalization of various new
copper properties small individually, was
In process of correction. The maturity
of loans in which the securities involve
In those ventures figured as collateral.
They are supposed to have given the oc-
casion for the severe curtailment.
The perception of these specialties to-
day put new face on the demoralized
appearance of things yesterday. So Sc
we're a decline as has been witnessed In
the last 10 days Is accompanied newt
ably by a. large expansion of the short
interest In market. Usually nothing
checks the short selling, but an actual
turn in the price movement itself. With
that effected, the demand becomes ur-
gent.
Such was the case today, the demand
from uncovered shorts making up SUBJ
stantial part of the large demand and
the upbldding of prices. Testimony was
offered by some of the commission houses
of material growth of investment de-
mand as well, attracted by the low level
to which prices had fallen and the in
wiling rate of return afforded in conse-
quence by dividend payments. London
Joined actively in the days buying on a
sufficient scale to AFFECT the foreign ex-
change market subsistence of the forced
liquidation relieved that market of ap-
prehensions. in connection with the stock
market settlement in progress.
An example of the reversal of specula-
tive form was found in the preference
shown for the item of earnings in the
United States Steel quarterly report over
that of the untitled tonnage on hand in
the selection of a topic for discussion.
The increase in the earnings over an
t.cipations was pointed out a matter
for encouragement, while little atten-
ton was paid to the excess over the
estimates of the decreases in untitled or
ders on hand. Expressions of confidence
emanating from the steel directors meet
ing and the opinion of the quarterly re
port in the Iron Age served to stimulate
the more hopeful feeling. There was a
repetition also of the report of an agree
ment to reduce production by the prfn-
cipal copper producers and an advance
In the price of that product.
The Wild advance in the cotton market
failed to destroy the increased confidence
manifested in the stock market. The
hazardous state OF part of the corn
crop also lost its influence for the time
being.
Bonds were stronger. Total sales. par
value, k,9S0,000. United States bonds
were unchanged on call