The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-27
PRICES RECOVER
IN STOCK MARKET
Depression of Several Days Is
Quickly Overcome
BEARS VERY NERVOUS
sidered Favorable to Better Crop
and Better Conditions In the
stock Market

stocks TODAY was owing in large part
to the disproof of the rumors of dan
serous DEVELOPMENTS which came into
circulation while prices were falling yes
terday. The quality Of these rumors in
itself stamped the source of them with
operators seeking to force decline in
prices. With the realization of this fact
there was no further eagerness on the
part of the holders of stocks to let
them go.
The bears on the other hand were ner-
vous over being left in an exposed posi-
ton, and were inclined to cover shorts.
These conditions were sufficient to ac-
count for a natural rebound in the mar
ket. Superimposed upon them were
number of favorable developments of
more positive character. OF these the vio-
lent break in the wheat market was
the most considered, owing to the far
reaching implications carried with it.
The technical side of the speculation
In wheat was not lost sight of in ac
counting for the price movement there,
especially the reports that private set
Elements had been effected with the
shorts in that market. Such settlements,
of course, would remove a potential de-
mand for wheat calculated to afford i'm
portant support of prices and would in
crease corresponding urgency on the
longs in wheat to realize. Even from
such an incentive liquidation in the wheat
market has an important bearing on the
money position and on needed relief OF
an expanded loan position by the banks
IF ba nftxr he foCf Of
Of events is already felt in the increas-
ing demand by interior banks for COM
mercial paper, of which reports are COM
ing to hand from Chicago. Besides this,
opinions of the crop prospects are grow
ing much more confident as shown by
the hopeful views expressed by the price
current.
Assurances of abundant harvests and
with a price adjustment which would re-
vive foreign demand and correct the dis
located foreign trade position would clear
up practically all doubtful points in the
present outlook.
Stocks, therefore, make a ready re-
Spouse to all definite developments prom
Using good harvests.
Engagements of gold today for ship
ment to Canada emphasize the Importance
of the harvests. The Canadian banks ara
expanded in their loans in quite as strik-
ing degree as the banks on this side
of the border and from almost exactly
the same conditions.
The principal reserve banks of Canada
keep large resources in New York and
have corresponding power to draw on
New York resources to meet their home
requirements
The further recession in foreign ex-
change rates today marks a profession
from further inroads on the New York
banks on another side. This average is
attributed to the effect. of bills against
the American bonds which have been sold
In France.
There was a renewal Of rumors today
on this subject which pointed to largo
extension of the sales effected and the
belated official announcement of the st.
Paul $5o,0oO,000 bond sale was made. There
was discussion of the proposal to reduce
the percent to New York savings bank
deposftors. If this movement could be
accepted as an index Of a falling invest
ment return for capital it might promise
a forward movement in prices of bonds
and fixed interest bearing securities, but
the shrinkage in bond prices which are
savings bank investments and consequent
reduction in book value of the surplus
of these institutions is the more evident
motive. 1t was commended that reduced
interest allowance might prompt some
Withdrawals OF savings deposits for direct
Investment in securities which now sell
on a higher investment return than when
the bulk of savings bank holdings were
purchased.
The suspension for a year for stock
exchange member as measure to dis
cipline was supposed to be responsible for
some of tho liquidation that came upon
the market yesterday.
Bonds were steady. Total sales, par
value, 81, 22S,0O0. United States bonds were
unchanged on call.