The Birmingham age-herald., 1910-01-21
STRONG REACTION
 IN STOCK MARKET  Downward Course of Prices Is Headed Off Successfully ONE MORE FIRM SUSPENDS Bears Try to Keep Prices on the Down Grade But Short Interest Is Too Heavy and Advance Is Very
 Active.
ONE MORE FIRM SUSPENBS

New York, January 20.-Yesteroay disorderly break in prices of stocks proved to be the continuation of the down"aro movement of prices for the time. There was a period of upheaval early today as the sequel of the anxiety growing out of the business endorsements of yesterday, and one more failure was announced, that of the specialist upon whom fell the brunt of the wild market yesterday in Coium- bus and Hooking Coal and Iron. There was evidence of further purging of specu- lative unsoundness in one or two special stocks that have shown signs of manip- 1llative practices in the course of extended and insuffieiently explained advances.
 By the time the failure was announced the cleaning up process was practically completed, and the day had been paved 7 for the vigorous recovery which followed. Various forces worked to that end and were already at work when the market opened.
 The needs of an uncovered short inter- est which had expanded to unwieldly pro- portions in the course of the bold opera lions of yesterday made themselves felt at the opening. Resort had been had to the London market before trading had started here, and prices opened, there  days closing level in the majority of the list.
 The bears made another stand to dom1- nate the market, and fierce contest was waged during the whole of the first hour of the market. The yulnerability Of one or two stocks had a sympathetic erect on the whole list, and a short period of gen. eral weakness intervened Sufficient ob- stacles to further decline were encoun- tered to turn prices upward again.
 Besides the overextended short intrest 3n the local market a substantial factor to- ward recovery was the improved mone- tary and investment situation In foreign markets. The London money market was found to be so far strengthened as to prompt the governors of the Bank of Eng land to reduce the official discount rate of that institution half of 1 per cent to per cent, thus somewhat anticipating the expected action in that direction.
 The expectation was strengthened by this action that the discount rate of the Imperial Bank of Germany also shall come down. Financial interests in Ison- don at the same time professed to see in the gains made by the unionist party in the parliamentary elections check to plans for radical and socialistic legisla- ' tive programmes even though the gains give no promise of being large enough to displace the liberal government.
 An investment demand was thus stimu- lated and American securities got part of the benefit of it. Buying of stocks for London account was an influential factor in the days market here. Commission houses with membership in the stock ex- change were agreed that an investment, demand for domestic capital was devel- oped also by the more inviting level of prices for stocks established by the recent break
 The bargain hunter made his appear ance in brokers offices attracted by the signs of sacrifice selling of stocks in. yes terday's market.
 The fall in money rates since the first of the year coincdent with the fall in prices of stocks has resulted in shifting the advantage in investment returns to the holding of dividend paying stocks, rather than in placing of loans. The declaration of an initial dividend on the common stock of the New York, Chicago and St. Louis, and the increase in the Cambria Steel dividend, were incentives buyers of stocks.
 The iron and steel reports and returns of railroad earnings helped the bullish feeling. There was no lack of funds of- fering on call in spite of yesterdays stock market disturbance, and buying of stocks was thus encouraged.
 Buying was going on actively at the highest prices of the day when the days session ended.
 Bonds were irregular. Total sales, par value. s4,932o00. United States bonds were Unchanged on call.