The Washington herald., 1910-07-29
WALL STREET NEWS
Upward Rush of Prices as
Soon as Market Opens.
SOME FEARS OF BEAR PANIC
Every Circumstance and Every News
Development Conducive to Higher
Prices-SettIement of Pearson-Far-
quhnr Syndicate Relieves Market.
London Buying Noticeable Feature.

New York. July $50 decided was the
change 10 stock market conditions as a
result OF the cessation Of liquidation by
the Pearson-Farquhar syndicate that to-
day the greatest danger of trouble arose
from fears OF a bear panic. Following
yesterdays brisk recovery in prices, tho
London market for American stocks was
very much stronger this morning, and
the opening here was both strong and
turbulent. with operators short Of stocks
bidding against each other in the effort
10 retire their short commitments.
The average Of prices OF the active
stocks at the opening was one and half
points above yesterdays closing, and the
excitement attending the opening was
illustrated by the circumstances that
opening sales OF Steel common were
punched into one lot Of 10000 shares.
sales 20 this total occurring almost in
simultaneously at varying prices.
Prices Move Up.
After this tumultuous opening, prices
moved up sharply. and there seemed
about 10 be stampede among specu-
lators short OF stocks when at about the
close Of the first hour stocks were sup
pied 10 them, seemingly from such I'M
portant quarters from which stocks are
often taken for support in times OF mar
ket weakness. Subsequently the market
steadied. and in the early afternoon sold
OF a bit from the best prices OF the day.
One Of the main features Of the ad-
vance was. Of course. the purchasing Of
stocks by operators for the decline. but
In addition to these purely speculative
operations there was healthy and more
important buying OF stocks by outside
spectators and investors than has been
seen in many weeks.
London buying was a distinctive fea-
ture of the outside demand. and .incI,ni-
ing to-day's purchases that city has
taken more than Sl5,OO0O00 in stocks in
the last three market sessions.
The range Of prices at the close show
ed that the market had recovered con
siderably more than the losses sustained
IN the first two days Of the week. heavy
though these losses were.
Market Is OversoId.
Every circumstance affecting Tho tecb.
meal position Of the market and every
news development OF the day was con-
dueive to higher prices Il was known
before to-day that heavy short interest
existed. for in speculative circles nothing
but extreme pessimism had been listened
to for a week. but It was not expected
That the market was so heavily oversold
as was disclosed by the scramble for
stocks to-day and by the borrowing de-
mand for stocks With which to keep
alive short contracts. Undoubtedly the
technical position OF the market is not now
as strong on account OF the retirement OF
short contracts yesterday and to-day,
bur the market is still probably rather
oversold than topheavy
In the new investment and speculative
buying which appeared the principal
stimulus was the settlement OF the trou-
bles OF the Pearson-Farquhar syndicate,
and it was evident, as additional details
came 70 light that the importance of
this event had not been overestimated.
Not only does the settlement relieve the
market from the danger Of a torrent of
liquidation, but II also does away with
a threatened railroad war, which was
projected by the ambitious leaders OF
the syndicate Largely on account OF
foreign purchases. induced by the settle
ment of the syndicates troubles, foreign
exchange was lower to-day and presaged
a continuation Of the gold import move
ment