The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-27
REACTION
/ IN STOCK MARKET
Heavy Rush of Buying Sends
Prices Up Rapidly
BULLISH FEELING LEADS
Violent Gains Are Registered During
the Early Session Which Prompts
Some Selling But Close Is
at the Top.


New York, January 26.-The action of
aodays market represented a -convulsive
teadjustment of the price level rather
.Ehan a measured recovery induced by
steady demand. This was seen in the fact
that first prices of the day were with
in fraction of the highest record for
the coppers on the merger report.
The opening of the stock market Ere
Eented a condition Of violent confusion
and wide gains over last nights prices.
The night having brought counsel, 1t was
realized that yesterdays selling had pur-
sued a decline down 10 a level scarce
1y warranted by any condition In the I'M
mediate outlook. The fierce rush to buy
demonstrated clearly also that much of
the needless selling which went on yes
terday was bear speculation and had left
uncovered short contracts of an enor-
nous SCALE
The London market advanced prices of
Americans sharply before the opening
here and buying orders from New York
were factor in the London advance.
The consequence was state of embar-
rassment for the uncovered shorts in
begin. Their urgent necessities caused
the violent gains in prices which were
registered at the opening and which Of
fered a basis for Intermittent selling for
the greater part of the day. This SELL
ing did not become urgent again and
gave no indications of the anxiety which
was SO acute only "a hours before.
The sudden Transformation in the mood
of the speculation had little TO explain
1t in the news of the day. The extra
dividend declared by the directors of the
United States Steel corporation after the
close of the market yesterday was an
event beneficial to the value of the stock,
certainly, and of cheerful import to pros
poets for values and promise for In
dustrial prosperity. The rate OF the div
idend however, the amount of the earn
1ngs for the quarter and the volume OF
untitled orders on hand had been ac-
curately predicted in public estimates yes
ferday, while prices of stocks were tum-
bling and for several days previous.
Besides the strong sustaining forces of
the necessities buying by uncovered
shorts, there was substantial relief by
the extensive liquidation which has been
effected and which has cleaned out the
weak spots all through the market. The
course which the banks have been pur-
suing can hardly have been dictated by
the necessity of building up their re-
serve position, which is unusually strong
already for this season.
The purging of the credit position from
the artificial results brought about by
pool activities and manipulation If it
lhas not been completed has been sus-
pended owing to the danger OF damage to
Tho more substantial fabric of the mar
ket, IL yesterdays rough course of pro-
cedure should have been followed up.
An incident of the day was the further
collapse to Is in the price of Columbus
and Hooking Coal and Iron following
the appointment of receiver for the
property.
Foreign influence did not give much
aid to the recovery. Official estimates OF
the prodieious losses caused by the
fiods in France radiated a depressing in
fiuence from the Paris market. There
were sharp reductions in the loaning
rates for money on time here
The final jump in the copper indus
trials with the circumstantial reports that
the merger was imminent checked a late
reaction in the general list from the
highest prices of the day, touched during
the final hour.
Bonds were strong; total sales, par
value, $3,2s9000.
United States bonds were unchanged
on call.