Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-07-28
NEW YORK STOCKSAND BONDS
Action of Market Undergoes Violent
Reversal in Prices.
SENTIMENT is TRANSFORMED
Previous Extensive Liquidation Az
fords Relief, Private settlements
Remove Necessity of sacrIfices-
Feeling f. Brighter.

NEW YORK. July N.--The action OF the
stock market underwent violent reversal,
where, yesterday, they were breaking with
out sign OF resistance Speculative sent-
ment underwent corresponding trans
formation, but with the usual confusion be-
tween cause and effect. The extensive
liquidation accomplished yesterday afforded
great relief in itself and to this was added,
private settlements, by which embarrassed
accounts were taken over and the neces-
flee OF securities in a market In which the
demand had become we'll nigh paralyEed.
The brighter feeling due to these reports
the local nature OF the acute trouble which
was forcing liquidation.
In place of the supposed widespread
sources OF the selling based on general
disbursement with the situation OF trade
and money market, there emerged the con-
victSon that a confined area represented
the limits Of 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 be
came 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
southwestern connections In pursuance of an
ambitious project OF extension and merging
was surmised that oyer-extenslon In the
high capitalization of various new cop
per properties, small individually, was in
process of correction. The maturity Of
loans in which the securities Involved in
these ventures figured as collateral was
supposed to have given the occasion for
the severe curtailment. The perception of
these specialtes today put new face on
the demoralized appearance of things yes
terday.
so severe a decline as has been witnessed
In the last ten days Is accompanied in
evitably by large expansion of the short
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 a substantial
part OF the large demand and the up-bid-
ding of prices Testimony was offered by
some of the commission houses OF a ma
terlal growth of Investment demand as
well, attracted by the low level to which
prices had fallen and the inviting rate OF
| return afforded in consequence by dlvi-
| dend payments. London Joined actively ir
| the days buying a sufficient scale tC
effect the foreign exchange market. Sub.
| sidence OF the forced liquidation relieved
| ton with the stock market settlement In
progress.
An example of the reversal Of specula
| tive form was found in the preference,
i shown for the item of earnings in tn,
1 United States Steel quarterly report Owe
I that of the untitled tonnage on hand IL
1 the selection of topic for discussion. Thu
] increase In the earnings over anticipation
/ was pointed out as matter for encourage
4 ment, while little attention was paid to tn
4 in untitled orders on hand. Expressions o
| confidence emanating from the steel di
| rectors meeting and the opinion of tn
i quarterly report in the Iron Age serve,
| to stimulate more hopeful feeling.
l. Bonds were stronger. Total sales, pa
| value. $3.50, 600 United States bonds un
II changed on call.
Number of sales and leading quotation