The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-05
RECOVERY SHOWN
IN STOCK MARKET
Liquidation Is not Heavy and
Prices Make an Advance.
MONEY MARKET rs EASY.
Speculative Sentiment Has Been Very
Unsettled for Some Time Hut the
Market shows Signs of Rapid
Return of Confidence.

New York, February 4.-SpeculatiVc
sentiment remained much unsettled to-
day as an after effect of the violent
declines which were effected in. yes
|terday's amrket. There was no re-
sumption OF the heavy liquidation which
broke the market yesterday and this
left the way open to some recovery.
1.-THE bear interest left uncovered after
|such q spasm as has occurred this
|Week insures a potential demand for
stocks sufficient to carry prices away
Iron the low level. The suspicion that
|some of the powerful capitalists who
had apparently abandoned the market
Ito its own resources were buying stocks
again added to the uneasiness in
1.-THE minds of the uncovered shorts. They
|were impressed also with the asser-
|tions of commission house managers
|of the presence of bargain hunters and
Todd lot buyers in the market The
lease to which the money market has
attained coupled with the fall in prices
|of dividend paying stock offers an in
ducement to hold stocks, even where
borrowed money is employed in part
for that purpose.
decline which has occurred points to
Ia elimination of an ordinary mar
KEY cycle. Foreign news expressed
This view of the situation before bus
Illness resumed on the New York stock
Exchange by advancing the prices of
Americans in that market. It was not
surprising therefore that rush Of
bears to cover shorts should have
made opening prices well above last
nights closing level which in itself
represented a considerable rally from
the low prices of the movement.
The violence of these movements
|proved disconcerting to all but the
most highly speculative element in the
market and a recovery eliminated some
| of the substantial Luying which was
perceived at the lower prices. The
hears rallied their forces when any
|sjgns of that sort appeared and made
fresh attacks.
Those attacks were most effective
lin the copper group and especially
american Smetting. The position of
1.-THE proposed merger as we'll the re-
|cent statement of annual earnings of
1.-THE company was assigned as reasons
for It's vulnerability Tile Hawley
|group of stock:, notably Chesapeake
land Ohio, were also picked for at
tack. 1t was these recurrent raids on
|pricAs that kept speculative sentiment
UNSETTLED and made the buying timid
and hesitating. Resistance to pres
sure on declines in turn gave fresh
assurance to buyers. The tone of spec
ulative sentiment was Kept shifting Ia
| that way throughout the day.
The preliminary estimates of the
weeks currency movement pointed to
|another notable addition to the sur
|plus reserve of the banks. The like
1ihood of loan contraction to be shown
/ I'm consequence Of the heavy stock
market liquidation added to this ptoba.
|bility. This had It's Influence IN check
| ing the liquidation by the prospect that
the banks would be experiencing diff
Guilty before long in finding enploe-
ment for the surplus funds.
The Berlin market was impressed
with the settlement of the tariff con-
|troversy with the United States and
helped the Improvement abroad
One of the days upward movements
was in progress at the close. which
was strong with net gains for most
stocks.
Bonds were irregular. Total sales,
par value, SO, 4Oi.u00.
United States bonds were unchanged
on call. -