Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-24
FINANCE AND TRADE
Failure of Firm of Brokers Depressed
All Stocks.
SHARP ATTACK ON STEEL ISSUES
Due to Rumors That Another
Plant Will Close.
GENERAL MARKET REPORTS
Special Dispatch to The Evening Star.

Special Dispatch to The Evening Star
NEW YORK. May 24-Today's stock
market promised to be a duplicate of its
recent predecessors. but the failure of a
prominent brokerage firm. announced dur
ing the noon hour, was followed by a
sharp decline in nearly all parts of the
list. Although the cause of the embarrass-
ment is said to have been due to the firms
transactions in cotton and grain there wele
numerous stock operations closed out 'un-
der the rule The Pacific shares the
grangers, Atchison and numerous active in
dustrials all felt the effect of the closing
out process.
In view Of the narrowness Of the market
the net changes for the day are relatively
small The presence of orders under the
market served to lessen the effect and rail-
lies were very prompt in numerous in
stances. The episode, however. is unfor-
tunate. as at least one other house was
obliged to deny unfounded rumors of
trouble
The industrials which had contributed to
the strength of yesterdays market were
made Irregular during the decline else
where and their future course is more OBJ
scure than ever. Semi-official confirmation
OF the sugar working agreement was re-
ported, but had little influence on the
stock. Some realizing in American To-
bacco was reported and for a time this
selling forced the price down from the best
Rumors Of another closing down of a
federal Steel plant were circulated DUNG
the morning and the entire steel group
seemed destined to sell lower. The de-
mails made around noon had little infiu.
ence other than stopping the selling and
forcing the group into a dull and almost
stagnant condition.
The reduction of the Bank Of England's
minimum rate Of discount was an encour.
aging development, preparations were
thought to be still in progress AT that cen.
ter for even greater strengthening Of
available resources.
A reduction in sterling rates followed on
this side, and the gold movement Is again
shown to have lacked its usual significance
Commission houses were buyers at the
low prices, but these purchases probably
represent orders which have been on their
books awaiting some sudden setback In
prices. The next series of such orders ara
probably at a lower level, and the demand
would therefore fall off at any considerable
advance. The short interest covered freely
and the markets strength from this source
is consequently reduced.
Recent demonstrations tend to confirm
the view that the general outlook favors a
holding of prices rather than any important
movement in either direction. TIE street
is settling down to the prospect for dull
summer. and the preparation may in this
instance, produce the result.
Today's dizziness was emphasized by the
holiday in Berlin. the buying of Northern
Pacific during the last few days having
been largely credited to that center
The dividend prospects on this stock are
responsible for the demand, and while there
is some confusion In the arguments used 1t
is at least certain that the funds are avail
able.
Liquidation incident to the failure con-
tinued during the final hour. but owing to
the fact that the firm had been quietly clos
ing Its contracts for a week or more the
market was not overtaxed with offerings.