The San Francisco call., 1910-07-28
TRADERS HAVE
PROFITABLE DAY

went a violent reversal, with
prices advancing by leaps and
bounds, where yesterday they were
breaking without sign Of resist
ance.
Speculative sentiment under
went a corresponding transforma-
tion, but with the usual confusion
between cause and effect. The
extensive liquidation accomplished
yesterday afforded great relief in
itself, and to this was added, ac-
cording to current rumor, some i'm
portant private settlements by
which embarrassed accounts were
taken over and the necessity thus
avoided of continuing the sacri-
fee of securities in a market in
which the demand had become
well nigh paralyzed.
The brighter feeling due to
these reports was enhanced by a
clearer perception of the local ma
ture of the acute trouble which
was forcing liquidation. In place
of the supposed widespread sources
of the selling, based on general
discouragement with the situation
of trade and money markets, there
emerged the conviction that a
confined area represented the
limits of the trouble.
a renewed slump in Rock Island
preferred to 81 early in the day
was accepted as one index of the
source Of the difficulty. Many
rumors were current of the shift
ing Of large newly acquired hold
ings of various railroad stocks,
reaching out from the eastern an
thracite and trunk line field and
into western and southwestern
connections in the pursuance of an
ambitious project of extension and
merging. In addition to this source
Of weakness it was surmised that
overeXtension in the high capitali
zation of various new copper
properties, small individually, was
in process of correction.
So severe a decline as had been
witnessed in the last 10 days has
always been accompanied inev-
itably by a large expansion Of the
short interest in market. Usually
nothing checks this short selling
but an actual turn in the price
movement itself. With that eff
fected the demand becomes urgent.
Such was the case today, the
demand from uncovered shorts
l.; 70 fin1 nf
the large demand and the upbid-
ding of prices Testimony was
offered by some of the commits
sion houses of a material growth
of investment demand as well, at
tracted by the low level to which
prices had fallen, and the invit
ing rate of return afforded in con-
sequence of dividend payments.
London joined in the days buy
ing on a sufficient scale TO affect
the foreign exchange market. Sub
sidence of the forced liquidation
relieved that market of apprehen-
sions in connection with the stock
market settlement in progress.
An example of the reversal of
speculative 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 topic for discussion.
The increase in the earnings over
anticipations was pointed out as
matter for encourag cement, while
little attention was paid TO the
excess over the estimate of the
decreases in untitled orders on
hand
Expressions of confidence ema-
mating from the steel directors
meeting and the opinion of the
quarterly report in the Iron Age
served to stimulate a more hope
full feeling. There was a repeti-
tion also of the report of gree
ment to reduce production by the
principal copper producers and an
advance in the price of that metal.
The wild advance in the cotton
market failed TO destroy the in
creased interest manifest in the
stock market. The hazardous
state of a part of the corn crop
also lost its influence for the time
being.
Bonds were stronger. Total
sales Cpar value), s9S0,O0o.
United States bonds were un-
changed on call.