The Birmingham age-herald., 1907-05-26
SLUGGISH
 IN DULL MARKET
Bad Impression from R. l. Un-
 derwriting Low as 82
BANKS STRONG SHOWING
Cash Increase Larger Than Was Ex- pected-cIosing Is Weak at the Lowest Prces-Revlew
 of the Week.

New York May 25.-The short session at the stock exchange today was prac- tically bare of interest Dealings were small and price movements sluggish and hesitating. The undertone was weak and efforts by room traders to carry prices upwards were son abandoned.
 bad impression was made by the report that the underwriting of the s10,- 100000 of Rock Island per cent refund- ing bonds had been at as low a figure as S2 the length of time which the bond has to run to maturity indicating that little hope is entertained of an early relaxation of the strain of capital. The banks made a strong showing in the weekly statement, the cash increase being much larger than was estimated. This did not help stocks and lowest prices were made after the appearance of the state ment
 Foreign exchange continued firm and shere is a growing likelihood aagin that gold will go out. Discount in London rose further and sharp competition is eX- peeted with Paris for the weekly arrivals of gold in the London market on Mon day. There was continued liquidation in the Southern railway stock. which forced the preferred to the lowest level of the year. The heavy tone of United States steel was weak and at the lowest prics. Total sales of bonds, par value, $76O,000
 Stocks have been for sale in large volume this week, and with the continued torpidity of the demand wide price con sessions were made necessary to secure market, The activities of an organized and aggressive bear party in the deal ings have been clearly evident, but liqu- 1ation in large volume has given success to the operations of the bears The sources and the motives of this liquida- ton have furnished the material for the principal discussicn during the week. There has been no special new develop nent to account for it, although the general conditions have been a continuing dis eouragement to any effective demand for securities and this has operated with cumulative force in prompting holders to get out of their position in the market. Important liquidation has been attributed to individual necessities and plans on the part of the capitalists of high standing, and this has furnished fruitful field for rumor and surmlse which is given credit by its plausibility Heavy selling of United States steel has had a powerful influential effect in depressing the whole list, and rumors pointing to individuals were busy concerning this stock.
 There can be no doubt that require ments constitute very general cause for the restricted demand for securities on the open market
 At present stockholders are involved in obligations for periodical installments of subscriptions to large new issues, which preclude them from giving the usual support to their stocks in the open mar ket. It was a common supposition that Union Pacific was under pressure during the week to provide resources for the convertible bonds underwriting. This was only one phase of the recent scarcity of capital, which lies at the root of the present prostration of demand of exist ing securities, not only in this country, but in London. New issues in London are followed by liquidation of4 the old.
 The publication of the report of the bureau of corporations on the Standard oil company and the intimation of an early resumption of the interstate com merce commissions inquiry into the rela- tions of the Northern Pacific we're of im- mediate effect on the market.
 The origress of the crops Is scanned by the stock market interests, but the market has not been so immediately re-' sponsive to movements in the price of wheat, owing to the speculative origin of the activities in that market.
 Bonds have been dull. United States 2s have advanced 9sc and new As have de- clined Ac on call during the week.