The Birmingham age-herald., 1903-05-19
STOCKS EVIDENCE
 BIG LIQUIDATION Selling Seemed Induced by Sen- timent Some Time Dormant DECLINE AND THEN RALLY Number of Additional Stocks Broke Through Previous Le.f Level, Max
 Ing a Strong Influence on
 Bearlsh Sentiment.
DECLINE AND THEN RALLY

New York, May 1S.-There was a very considerable liquidation in the stock market today. The selling seemed in- duced by a specialization of the senti- ment which has been approaching defi- nlte formation for some time, but has been deferring action in the stock market in the hope of a recovery. There was no development to cause decline except the engagement of $2,325,O 900 of gold for export to Europe. This had been quite definitely expected, and the amount was rather less than the forecasts. There was a slight hardening in the call loan rate in response to the gold movement, but it could not be said that any liquida- tion was forced by withdrawal of cred its. The results of the consideration over Sunday of the general financial outlook seemed to be rather the placing of stop- loss orders as a precautionary measure below the market than definite orders to sell The opening of the market was in fact irregular, and a slight decline was followed by a considerable rally. This rally persisted after the first knowl- edge of the engagement of gold for ex-
 
 been deposited at the sub-treasury for telegraphic transfer to New Orleans was followed almost immediately by a crumb- ling of prices throughout the list This evidence that the violent cotton specula- tion is making demands upon the money market, was taken in very i'll part by the stock market. 1t Is probable that the decline In prices was immediately due to professional attacks by the bears, but the existence of stop-loss orders below the market made prices very vulnerable The usual result of considerable decline is now seen in the increased disposition to sell merely because prices have declined. Stocks which have now got lower than ifi past months decline on account of the Northern Securities decision are conspic- uous sufferers In the present selling. This Is seen in the case of St. Paul, New York Central and Southern Pacific, espe- cially. When prices show resistance at the same level on a relapse, after one re- covery. it is the speculative theory that effective support has been determined on at that point When the price goes lower on the second decline, 1t Is customary for professional operators to sell 1t, on the theory that the final resting place for the price is indefinite.
 Quite a number of additional stocks to- day broke through the previous low level
 
 fact had a strong influence on bearish sentiment. The days exports of gold and the continued firmness of foreign ex- change are a demonstration that the allot- ment of the Transvaal loan in London is not to relieve the pressure for gold abroad as was supposed. The London market it. self is now taking account of the future periodical requirement for the payment of the monthly installments on the sub scriptions to the loan. The fact that a large portion of the proceeds of the loan is payable to continental holders of the South African railroads, which are being purchased by the colonies, makes pros pective pressure upon London for remit tance to continental points. The outgo of gold from here Is in payment of borrow ings and insurance. But when these bor- rowings were made 1t was proposed that the outward movement of merchandise would supply exchange for their repay ment for the use of gold. With the large requirements ahead of the domestic money markets, there Is an uneasiness manifest whether the outgoing gold will be readily available for recall to this market when 1t is needed. Nearly al the active stocks today fell between and 2 points, and St. Paul, New York Gen. tral, Missouri Pacific, Rock Island and Reading exceeded that Amongst dor mant stocks there were even wider de- clines. Amalgamated copper was strong CT, as the effect of the influence of the di- vidend rate on the Calumet and Heckla stock. The market closed easy and within a small fraction of the lowest.
 United States steel new sinking fund bonds were dealt in for the first time n the exchange and rose more than a point over Saturdays price on the curb, with out explanation. Otherwise bonds were weak. Total sales, par value, s2020,000
 United States new is declined A on the last call.