The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-06
THE STOCK MARKET
IS STILL NARROW
Prices Are Kept From Slump
ing By Early Support
LOSSES AT THE CLOSE
Professional Element Has Control of
the Market and After an EARLY
Advance Decline Is
Registered

New York, August 5.--The stock mar
ket, while still narrow and professional
today, reflected more aggressive mind
on the part Of that element in the spec
ulation. This position was adhered to
with more determination and was not
changed until the end of the day. The
attitude assumed by the professional
traders was based on conviction that a
large short interest remained uncovered
and was in a vulnerable position through
urgent liquidtion The borrowing demand
for stocks constituted the evidence on
which the traders relied for the relief
In the overwhelmed short interest, al
though the borrowing of stocks for deliv-
cry In recent markets has been under sus-
picon of a device of sellers of long stoca
to conceal their Identity 1t was not until
the last half hour that an attempt to take
profits determined the hollowness of the
market and wiped out the previous gains.
News developments failed to show any
marked alterations in conditions from
those recently prevailing Regarding the
corn crop there has been marked decline
of apprehension over the amount of dam
age done by the drouth. At first this took
the form of assumed relief from previous
check to growth by the rains OF this Week.
which would warrant disregard or
poor showing of condition in next Mon
days government report, based on Au-
gust l returns. The nature of some pr1-
vate estimates, which usually precede the
government report, has chhnged the ex-
recitation of that document and has led to
the supposition that reports of the dam
age done by the weather has been exag-
gerated. Buyers of stocks today on the
floor of the stock exchange protested that
the belief that the government crop re-
uri11 tO he faVOr9-
ble Weather advices today showed good
conditions both for corn and cotton and
the bulls made use of the news to push
the advance in stocks.
The rise in the private disc cunt rate in
the London market raises the question
whether opposition will be made of
further movement of gold from there to
New York The London Statas says of
this situation: I'VE cannot fail to be fair
Nv liberal to the United States at the
present time. In fact, If we are not, a
somewhat severe reaction in trade may
occur in the United States and the reac-
ton may give that country greater power
to import gold than may be comtortapie
for other markets.
That financial authority in an elaborate
argument attributes the long liquidation
in the New York stock market to the
very large exports of gold In the last u
months, Notwithstanding the expansion of
trade in the country. This gold, further-
more, appreciably assisted London to get
over difficulties, and now that London is
strong it can very well help New York
out of the bog in which the gold exports
have involved it.
u Whatever the additional movement OF
/ gold from London may be, another enor-
\ NOUS accretion of cash to New York
bank reserves is indicated by the prelimi-
/ nary estimates of the weeks currency
movement Sub-treasury operations, which
include payments for imported gold, have
\ supplied to the banks s6.697000, while the
4 inflow of cash from the interior will swell
4 the aggregate to from SIS. 0000 600 to $1,000
4 600. There have been rumors OF further
private settlements of stock market ac-
II counts during the week. which may affect
the loan item, but there Is no expectation
that the deposit item will be sufficiently
\ expanded to prevent a large increase In
\ the surplus reserve. The actual figure OF
the surplus in last Saturdays bank state
ment already stood at upward of $4,000
900.
Bonds were Arm; total sales, par value
81, 467, 900.
United States bonds were unchanged on
call.