The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-07-19
TRADING WAS DULL
AND PROFESSIONAL
Tone Showed Sentiment Doubt
full and Hesitating
SELLING WAS RENEWED
Stocks Were sold Early on the AS
sumption That Yesterdays Up
ward Movement Had Discount
ed a Good Bank Statement.

New York, July 1S.-Tradirg in today's
stock market was dull and professional
The tone of the narrow speculation show
ed sentiment very doubtful and hesitating.
Stocks were sold early in the day on the
assumption that yesterdays upward
movement had discounted favorable
bank statement so that no further rise
could be expected for some time. There
was momentary rally when the state
ment appeared, but the selling was re-
newed and prices reced,c to level sub
stantially below last night closing dull
rnd heavy withou. tiny rally. The gain In
cash was almost twice as much as had
been anticipated but the small loan con-
traction was disappointment in view OF
the heavy liquidation in the stock market.
1t was hoped that the large portion Of
the weeks corporation loan abroad and
that the Pennsylvania company which
has begun the payment of its six months
note would result in a substantial con-
traction of loan obligations. The fact
that the decrease only amounts to 81, 513,-
500 gave rise to a supposition that the
banks have been putting out some renew
ed loans on a large scale to private in
dividuals with the proceeds of the week $
liquidation. Pressure upon annalgamated
copper was renewed and its decline of
nearly two points, the weakness of ST.
Paul, and a three point drop in consoli-
dated gas, caused a bad impression upon
sentiment. Rock Island was again forced
down to yesterdays low record level
New York Central was supported and re-
covered from the one point decline. Toledo
st. Louis and Western stocks made sharp
rallies from yesterdays violent breaks.
There were large belated declines in some
of the inactive stocks which had not yet
been traded in during the last period of
reaction. The encouraged views Of BUSH
ness situation expressed by the weekly
commercial reviews and the large per-
centage of increase in gross earnings of
railroads, according to latest reports, were
ignored in the trading
Heavy liquidation on the stock market
has been in progress during the week
without any developments in the business
and industrial situation to adequately ac-
count for the weakness which developed
last week in the New York Central. On
the assumption that it's needs for funds
must be met by some new capital issues
with the danger of a repetition Of the ex-
perience met in the flotation of the new
Pennsylvania stock issue, uneasiness
spread throughout the list as it became
known that various railroad corporations
had similar needs for funds which they
were supplying by temporary loans being
at high rates of interest, rather than at
tempt to sell securities at a sacrifice in
the present unfavorabe market. This
was not strictly new situation, as 1t
has been known for some time that the
roads sharing in the new control of
Hooking Valley had given their notes
on a six per cent basis. The extension
of maturing service bond of the Bur-
lington for years on 4 per cent basis
was also a plain symptom of the disincli-
nation of railroad corporations to at
tempt any new issues at this time. The
violent decline In Pennsylvania shares,
in connection with the new issue of stock,
was a conclusive demonstration of the
unfit condition of the market to absorb
new issues, even of high grade, and the
congestion of newer industrial issues in
the market has been notorious for
months. Nevertheless, acute uneasiness
over the money situation present and
prospective, was caused by the announce
ment that the Burlington had borrowed
$5O00,O00 until next March, and the I'm
ion Pacific 100000 for a year and
half on a six per cent basis. Many ru-
mors thereupon became current Of
the large prospective borrowings by
various railroads and of the conse-
quent heavy inroads to be made upon
money supplies. The market took on a
tone of decentralization on Wednesday,
and grave fears began to be felt of the
consequences of the uninterested shrink
age of values. On that day the infiuen-
tia1 bankers in the Clearing House as
sociation took counsel among themselves
and allowed it to become known that
careful investigation had assured them
of the soundness of the banking situation
and the safety of the position of all city
banks and trust companies so far as they
could ascertain.
United States bonds were all unchanged
as compared with the closing call of last
week.