The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-07-28
REACTION COMES
IN THE MARKET
After Severe Decline of Tues
day Prices Advance by Leaps
and Bounds.
CAUSE OF BIG DROP is
BELIEVED TO BE KNOWN
Result Is Feeling of More Con
fidence and Increased Specu-
lative Demand.

NEW YORK, July 27.-The action OF
the stock market underwent a violent re-
versal. with prices advancing by leaps
and bounds. where yesterday they were
breaking without sign of resistance.
Speculative sentiment underwent a trans
formation but with the usual confusion
between cause and effect
The extensive liquidation accomplished
yesterday afforded great relief In itself.
and TO this was added, according to cur
rent rumor, some important private set
were taken over and the necessity thus
avoided of continuing the sacrifice of Sc
curities in market in which the de-
mand had become we'll nigh paralyzed.
The brighter feeling due to these re-
ports was enhanced by a clearer percep-
ton of the local nature OF the acute
trouble which was forcing liquidation.
In place OF the supposed widespread
sources of the settling based on general
encouragement with the situation Of
trade and money markets there emerged
the conviction that confined area rep
resented the limits of the trouble. A re-
newed slump in Rock Island preferred
to 81 early in the day was accepted as
pne index of the source of the difficulty.
Many rumors became current OF the
shifting of large newly acquired holdings
OF various railroad stocks. reaching out
from the eastern anthracite and trunk
line field and into western and south
ambitious project of extension and merg
ing, In addition to this source of weak
ness il was surmised that over-extension
In the high capitalization of various new
copper properties, small individually, was
In process of correction.
SO severe decline as has been wit
messed in the last ten days Is accom-
panied inevitably 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 effected the demand becomes
urgent Such was the case today, the
demand from uncovered shorts making up
q substantial part OF the large demand
and the upbidding of prices. Testimony
houses OF a material growth Of invest
,nent demand as we'll. attracted by the
low level to which prices had fallen and
the Inviting rate OF return ahorded In
Npnsequence by dividend payments. Lon
don joined actively in the days buying
on a sufficient scale to affect the for
eicn exchange market Subsistence OF the
forced liquidation relieved that market
of apprehensions in connection with the
stock market settlement in progress. An
example OF the reversal OF specula tive
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 anticipa-
tions was pointed out as matter for en-
coura cement. while little attention was
paid to the excess over the estimate Of
the decrease In untitled orders on hand.
Expressions OF confidence emanatine
from the steel directors meeting and the
opinion Of the quarterly report in the
Iron Age served to stimulate more
hopeful feeling There was a repetition
also Of the reDor; of agreement to reduce
production by the principal copper pro-
'ducers and an advance in the price OF
that material.
The wild advance In the cotton market
failed TO destroy the Increased confidence
manifest In the stock market. The haz-
ardous state Of a part OF the corn crop
also lost It's influence for the time being.
Bonds were stronger Total sale, par
value. $3.50, 600
United States bonds were unchanged on
tvell.