The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-21
DEPRESSION SET
IN BEFORE THE END
Supply of Stock from Abroad
is Feature
STATEMENT DISAPPOINTING
Was the Only Item of News Which
Had Special Influence In Trading.
A Lull In the Iron and
steel Trade.s
STATEMENT DISAPPOINTING

New York May 20.-Today's stock mar
ket started off auspiciously but before the
end of the two-hours' session depression
had closed in again, and the closing was
weak at considerable net losses through
out The supply of stock from abroad
which has been feature recently was In
terrupted today by the occurrence of
holiday in London. Opening orders to buy
for professional traders who had sold
the market short yesterday were therefore
effective in lifting prices, advances run
ming to a point or more in many of the
prominent market leaders. There was no
effective demand following this openeg ad-
vance. and by the end of the first hour
nquidating shares began to dribble upon
the market The current increased in
force and after the. appearance of the
bank statement became somewhat pre-
cipitate. The hank showing formed prac-
tically the only item of news which was
of influence in the trading
The shrlnkage in the cash reserve to
S. 759 800 proved somewhat less than the
preliminary estimates. Attention centered
upon the loan item, which was expanded
UPWARDS of $9OOO0.O00. An addition to the
deposits which expanded the reserve
requirements by almost as much as the
shrlnkaee in cash resulted in an inroad
OF over so per cent in the surplus re-
serve bringing ii down to $S,2l997o. Up
wards of $16000 900 of the loan expan-
sion was made by single institution,
and is attributed largely to the under
writing subscriptions to the slOo,OoooOO
Pennsylvania bond issue, so per cent OK
which was paid in during the week past.
On Thursday of the coming week the
final installment on the Japanese loan al
lotment will call for some $6OOOO0OO
Sterling exchange made further ad-
vance today, and it is evident that prepa-
rations are being made for the remit
tances on the Japanese loan subscription.
1t is not believed by banking authorities
that these remittances can be completed
without a large export of gold unless the
rates for money here should rise to a
level to offer an attraction for the leaving
of the proceeds of the loan in New YORK
for use In the money market In spite OF
the great ease of money up to the pres
ent time, these conditions had their effect
In inducing reduction in speculative
liquidation. The mercantile agency also
reported some interruption to retail de-
mand for merchandise owing to the back
ward season and a cautious spirit in the
demand for future requirements.
Total sales of bonds, par value, $l,79o'-
OO0
The weekly review of iron and steel pub
lshed on Wednesday afternoon by tho
leading trade authority. conferred atten-
tion on the lull in that trade, and this
was the principal influence in the break
In prices which came afterwards
The response of the stock market to
conditions in the iron and steel trade,
emphasizes once more the Importance at
tached to that trade as an index to the
Industrial and business outlook at large.
The strong effect produced Is due to IN
ference as to what the future In the trade
may be- rather than to actual. conditions
reported. Delayed building operations on
account of weather conditions, and q
nause in demand for railroad materials,
pending the formation of the harvests' are
given as causes of the lull In Iron and