The Birmingham age-herald., 1907-05-19
NEW NOTE ISSUES \ WEIGHT ON MARKET Industrial Corporations Cut Into
 Stocks Field BANK STATEMENT IS GOOD  New York Central About to Withdraw From Directorate of the c. & O.
 Stocks and Wheat
 Prices Fall.
BANK STATEMENT IS GOOD

New York, May 1s-The attention of op- orators in stocks today was turned ap- parently from the wheat market and was diverted to troubles more nearly concerning itself The trouble of mind was due mostly to rumors and to infer ence drawn from unrefned reports rather than to actual development of prospects of additional note issues seemed to bear heavily on the speculative mind, and un- confirmed rumors were afoat of some in- cursion into the field by industrial cor porations of the first class, where rail roads hitherto have been the largest seek CTS of accommodations. Inference was drawn from the report that New York Central interests were about to withdraw from the directorate of the Chesapeake and Ohio, which were hurtful to the stock and by sympathy to the general market
 Some friction between New York Gen. tral and Pennsylvania interests was im- piled in the rumors current on this trans action.
 The fall in prices of stocks was in pro- gress while wheat was reacting sharply in response to the profit taking on the wide advances. The bank statement, while favorable, presented no unexpected features, the cash increase confirming closely to the preliminary estimates, and the small loan contraction helping the strength of the position of the banks. Ac- tive developments of the foreign exchange markets are unusual Saturday, but the tone of foreign exchange held firm here and fell fraction in Paris and kept alive the discussion of possible exports of gold in the early future.
 The easy tone of the bond market was an element In the general depression pre- vailing. Foreign holidays subtracted one source of the usual participation in the market. Total sales on bonds. par value, S60400O.
 The stock market in New York has been in an almost torpid state this week, in common with the securities market at all great money centers. Elements of un- certainty in the financial and industrial outlook serve to keep down speculative activity, and the investment demand Is not sufficient to make any impression on prices The professional trading ele- ment have the market practically to themselves and they follow an opportun- ist policy, seizing any special develop ment to take position in the hope that 1t may be held in the outside activity of stocks.
 monetary sensation was caused in the middle of the week through the publica- tion of an alleged abstract of the interd- ed report of the interstate commerce com mission, embodyng the decision of the recent investigation of the Hartman lines.
 The course of events indicates that the question of adequate supply of capital to supply the requirements for plans of eX- tension of enterprises, together with the active needs of trade actively, is still un- solved to the satisfaction of the financial community. There is a general feeling that the present comparative ease in the money market is partly illusive and Is dependent upon the withholding or de- mands for new capital, which are ready to come forward on any favorable oppor- tunity, the Union Pacific financial plan was followed this week by the announce ment of the Delaware and Hudson equip ment note issue and the general electic convertible bond issue and by intimations of a plan for additional capital by the Chesapeake and Ohio. The underwriting of the Union Pacific convertible bonds issue has not availed to check down. ward tendency in the quotations for the new security when issued which is dealt in on the curb market.
 The depressing effects extends also to other and older securities, which are over shadowed by the advantages offered by newer issues. The heaviness and lethargy of the bond market Is ascribed to the effect of the newer issues and the pros pect of still others. The London mar ket is affected in the same way success sive new issues serving to intensity the dullness into which the market dropped.
 Money markets have inclined to hard en and loans on ordinary collateral for the longer periods have advanced appre- ciably The halt in the security market is involved to some extent of course, with the uncertainties over the crops.
 The bearing of the wheat shortage on this country, however, is not yet defined and this accounts for the varying effect of the price fluctuations of wheat in stocks. The stock market is most sensi- five at present at the news of the crops shortage, both in this cduntry and in Europe. The possible output of spring wheat becomes a question of exceptional importance.
 There is no expectation that the stock market will emerge from it's inactivity until the years crops are clearly defined