The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-07-10
STOCKS DEVELOP
ACUTE WEAKNESS
Liquidation and Pressure to
Sell a Disquieting Factor
SHARP DECLINE IN BONDS
Crop News and Statements Of Railroad
Earnings Were Entirely Ignored
In the Days Stock
Market.
SHARP DECLINE IN BONDS

New York, July s.-The stock market
developed rather acute weakness today
and the volume Of sales rose more than
double the recent average. The liqulda-
tion in New YQEk Central and the con-
tinued pressure to sell United States
Steel were the disturbing factors There
was no definite news to account for the
marked weakness Of New York Central,
but the tape was regarded as giving
ground for ominous conjectures These
took form IN various surmises as to the
measures to be adopted by the corpora
ton to secure the capital which will be
required to carry on the vast terminal
and other improvements which have been
undertaken. The fact of this capital re-
quirement Is well known and the varia-
tions In today's rumors had to do simply
with the manner OF raising 1t. There
were rumors of projected issue of new
stock or a bond issue and of a temporary
loan on the security of notes. The recent
experience Of the Pennsylvania in float
ing its new stock does not offer encour-
agement for similar undertaking by
other railroad corporations 1t Is borne
in mind that the New York Central
stockholders have authorized nearly $1S,-
100000 of stock which 1t lies with the
directors to issue. 1t is also fact that
of the general refunding mortgage for
100000 900 authorized In 1897, $500 900
was for refunding underlying bonds while
$15, 900, 900 was reserved for new construc-
tion after 1903. The market price of these
ell 90 halo mt
week when they sold at par and today
sold at 06, without any large blocks be-
ing marketed in the interval To attempt
to float a new issue OF these bonds at
present seems unwarranted. These con-
ditions gave color to the days rumor of
the negotiation Of a loan of something
like $1S,000,000. The rumor as circulated
carried the further detail of an interest
rate to be paid at 6 per cent The usual
parallels were also drawn between
Pennsylvania and New York Central,
which have been selling near parity,
while the former is paying per cent with
the fiotation of its new stock achieved,
and the latter is paying per cent divi-
dends, with the new capital requirements
yet to be met.
The downward plunge of nearly four
points in New York Central was the event
upon which the whole market hinged.
Selling of the steel stock was aggravated
by the Iron Ages report of the increased
blast furnace capacity on July l, the in
creasing rate of accumulation of pig iron
and the slow recession in the steel mar
ket Pig iron was marked down during
the day and rumors were current of a cut
in steel billets at Pittsburg. United
States steel sold within fraction of its
low record level and the second fives sold
1-3 lower than ever before. The an
nouncement just before the close of the
market of the engagement of 100000 In
gold for export on Saturday, helped the
late weakness. With the movement of
currency from their interior arrested, and
with a loss indicated already to the sub
treasury of g. $4,000 including payments
for gold exports and a surplus reserve
last Saturday Of less than SS000 900 in the
banks, the influence of the further outgo
of gold may be understood. The continued
drain upon New York banks Is In strong
contrast to the prompt and enormous
recuperation shown by the Bank Of Eng
land and the Bank Of France in their
weekly statement today, following the
semi-annual settlements. Developments in
the cotton and grain markets. the news
of the crops and statements of railroad
earnings were entirely ignored In the days
stock market. Declines of 1 to points
were quite general and st. Paul, Read
ing. Norfolk and Western. Colorado fuel
and Tennessee coal sustained even more
severely.
The bond market was heavy and sharp
declines were scored in some inactive
mortgages. Southern railway st. Louis
division tours dropped IN Total sales par
value 1856. 900. United States rs advance
ed 1-s and the ys, old As and SIS 2 per
cent on the last call.