The Birmingham age-herald., 1903-05-21
LARGE INROADS MADE UPON VALUES liquidation Was Preclpitate and
 Urgent in Stocks DESPONDENT VIEWS TAKEN It Was Not Clear in Fact What Was the Cause of the Markets Weak
 ness-united States. Steel
 Bonds Were Active.
RESPONDENT VIEWS TAKEN

New York, May 20.-Liquidation became urgent and precipitate in the stock mar ket today and gathered force progress lively up to the very close, which was furiously active and weak at about the lowest No such sale of activity has been witnessed in the stock market since the trading following the Northern Securities decision. Wide inroads were made upon values and the very general effect of the selling forbids the supposition that 1t was due entirely to attack by either party. It was not clear, in fact, what was the cause of the markets weakness. The very meagre demand developed yesterday when prices were decisively turned up- wards, caused very bad impression up- on speculative sentiment. The decline has been so long sustained without notable pause at any time, that conviction has gained force with the professional ele- ment that a very large short interest had accumulated in the market. It, was be- lieved also that prices had got down to level that would prove attractive to a large waiting investment demand, when once some assurance could be had that the decline had run It's course Yes terday's market was accepted as proof that the point had not been reached when these sustaining forces could be relied up- on. Very Respondent views were taken in the future of the market this morning in consequence of this. The announcement of an engagement of $1, 300,00O of gold for export and the news that E. H. Harri- man had undergone a surgical operation, met the market at the opening and in- itiated the declining tendency. The en- ormous liquidation which soon develop ed in Atchlson was a marked influence upon sentiment and continued to dom- mate the market for the rest Of the day, the influence spreading to an increasing degree up to the close. Rumors were cir culated of a coming bond issue by the Atchison, but no official confirmation could be had on this subject The opinion gained ground that a large speculative in- terest in the market was in a vulnerable position and was being made target for attack. It will be remembered that at various times the securing of control of Atchison by Rock Island was dis cussed as an alternative proposition to the taking over of the St. Louis and San Francisco. It is probable that this talk caused a considerable speculative ac- cumulation in Atchison. There Is a sus- picion that there were actual large &C., cumulations looking towards control and that some of these stocks may be com- Ing upon the market. The extreme de- cline in the stock reached 3A, which was equalled by St. Paul. Losses of to 3 points were fairly general amongst &C., tive stocks and considerably exceeded that In cash where dormant stocks were forced to sale. A notable example of this was a 2S point drop in Michigan Central. This stock was subsequently, bid up again 10 points before an offering was encounter ed and a sale made. Bear tactics were perceptble in the precipitate decline at the last, notably in the circulation of rumor that s5,OO0,00O to $70OO,00O in gold would go out on Sunday to Europe. The only basis for this rumor was found to be the making of tentative arrangements for the shipment of $75O,000 to South America next week. The situation in the exchange market, however, was strong factor in the weakness of stocks. Ex- change holds firm in face of the ship ments and there is knowledge of the early maturity of some large German loans In this market which give ground for the expectation that considerable gold exports to Berlin may have to be made. A specu- lative upset in Boston precipitated some selling in this market today and shorts in the cotton market were said to be selling stocks to cover losses in cotton. Some stress was laid on the buying of stocks for London account as indicating the growth of an investment demand from that source, but arbitrage brokers ex- plain that much of this buying is due to a transfer of holdings from London to New York to secure the benefit of the present cheap money market here.
 United States steel 5s continued con- spicuous in the bond market. Prices were weak in sympathy with stocks. Total sales par value, 3,407, 900.
 United States bonds were all unchanged on the last call.