The Montgomery advertiser., 1907-08-01
THE STOCK MARKET


 New York. July sI.--rhe decline in prices today got its principal inspiration from the quarterly report of the United states Stee! Corporation The main factor in discour- aging sentiment was the statement given out by one of the directors that the amount of new business of the corporation for July had contracted twenty-five to thirty per cent. from the business of July. 1906. shrinkage so considerable as to give occa- sion for much serious thought of the extent to which the slowing up in general business turned weak on the appearance of the re port of the record quarterly earnings of the Steel Corporation The fact that these earnings would constitute new record was report was published. although the figures exceeded the most sanguine estimate. The decrease in the volume of orders on hand on June 30, compared with the preceding guar ter was no greater than was expected. But these facts apply to past conditions ana failed to appeal to the stock market sen timent The fact dwelt on was that the present condition in the steel trade repre- sents a considerable reaction with date lack ing to define the ultimate limits of the reaction. Some of the features of the ac- counting in the quarterly report had amin fluence in affecting the confidence with which 1t ws received.
 A method of accounting was adopted In the previous quarterly report: SO that the comparison with that was considered inac- curate, but in the comparison with last year there is a discrspancy which there Is
 
 form included in the deductions from gross earnings the cost of renewals as well as ordinary repairs and maintenance of plants, while the new form has dropped gut that word. While the sum of slS.5cO.0oO ap- propriated from the surplus for new plants" and other items constitutes re cord and compares with $130O0.O 900 Tor the corresponding quarter of last year. the item of special improvement and replacement funds stands at $1.o0o,ooo compared with g. 500 900 for the corresponding quarter last The Si-intftCanCe Of these CnaHBsS could only be properly understood by an ex- pert accountant. but they formed the sup feet of discussion in making uo the untaV- orable impression following the puoIicatloh of the report. From the purely specuiat- i've standpoint the view wast adoDted that a market that failed of stimulation rom the Southern Pacific dividend and from the United States Steti quarterly earnings was not in hopeful position for rise There was in consequence much professional selling or l stocks.
 The copper stocks were even weaker than | the iron and steel stocks. partly on accoun. of the continued upsettlement In the -market for the metal which scored further Wiue decline m London today. A contriputory cause to the weakness in the group was the l feeling that the outcome of the Haywood trial might involve some added difficulties for those companies in the labor depart ment.
 An unfavorable crop report from private | expert of some authority in the specuia- | tive markets was factor in the late weak ness of the market. Sterling exchange | moved away from the gold export point to- day The higher rates for call loans have invited offerings of bankers finance bills.
 which lowered the price of exchange. The l pressure to sell stocks persisted throughout the session and the market closed weak at | the lowest prices of the day.
 | Bonds were irregular Total sales par val | ue s1.es6. .00o United States bonds were un- changed on call.
 NEW YORK CLOSING STOCK LIST.