The Birmingham age-herald., 1903-07-25
FAILURES CAUSE
 MUCH EXCITEMENT
Bears Rush to Cover Short
 Contracts on Selling
STOCK MARKET IS UNEASY
Announcement of Talbot J. Taylor and w. L. Stow Going to the Wall Causes a Furry Among
 Bulls and Bears.

New York, July 24.-The announcement late today on the stock exchange of the failure of Talbot j. Taylor & Co. and of W. L. Stow & Co.,, followed a day of suppressed uneasiness. and apprehension. The bears rushed to cover their short contracts on the selling induced by the news of the failures and violent re- bound followed so that large part of the days losses were retrieved and the market closed with excited buying on rising scale of prices. Some of the lead- ing active stocks closed the day with net gains of point or more. This com pared with declines below last nights level at the period of greatest weakness of 1 to 31a for the active market leaders, Amongst the specialties there were more severe losses In some cases, due as the event proved to the special commitments of the embarrassed firms in those stocks. An example was the Mexican Central securities in which the firm of w. L.. Stow & Go. were interested. The fail- ure resulted in drop of "A in Mexican Central from 1874 to Il.
 There were quite a large number of 1ow-priced railroad stocks in which simi- lar downward plunges, although not so extensive, served to arouse fears of com ing failures. The situation would be a z large commitment in stocks with the stock already acquired figuring largely as collateral for loans, and with the funds employed in the market support and manipulation of the price. Bankers and money lenders have been keenly on the scent of such conditions back of the money they have out on loan and have grown more and more exacting in re gard to collateral on such loans and more solicitous to have them closed out with the shrinkage in security values and the undermining of confidence
 The failure of Talbot J. Taylor & Co. is inevitably associated with that of James Keene, although his name does not appear in the partnership of the firm. But a family connection and the well known fact that the firm acts for him very often will connect the failure in the public ap- prehension with the large stock market operations which he has conducted. The market management of the United States Steel stocks during the period of their Notation and the conduct of pool In Southern Pacific stock will be looked up- on as having an outcome in the failures.
 The Southern Pacific pool was credited with holding at one time some 300,000 shares of Southern Pacific stock, and It's challenge of the control of the Union Pa oflc party in the property and its at tempts to force the payment of divi- dends on the stock are matters of re- cent notoriety and with the sequel still pending in the court. Aside from the ex- pectation of the failures, the realization of the fears, and the revusion of feeling reflected in the rush of the shorts to cover, with the bad news out, there was no per- ceptible news in the market. The liquida- ton in cotton was viewed with satis- faction. The weeks movement of cur rency indicates a cash gain by the local banks of upwards of $6000,000, and news was received of the shipment of another sl25O.00e in gold from Australia to San Francisco
 A description of the market resolves itself into a list of price changes. Ru- mors were numerous all day of financial embarrassments, and the field of these rumors were by no means confirmed to the stock exchange or to New York City, but ranged the country over The heavy selling of AmalGamated Copper was ac- eompanied by very specific rumors of money troubles which were not substan- tiated
 Bonds were weak in sympathy with stocks. Total sales, par value, sS,595, o00 United States bonds unchanged on last call.