The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-02-03

New York, Feb. 2.-The announcement
made late yesterday Of the failure Of a
well-knOwn investment house was really
known to but few people in the financial
district before the appearance of the
morning newspapers to-day. It could not,
Of course. be construed IN any other way
than as an unfavorable factor In the
stock market
1t was said in banking quarters that the
weakened position of the house in ques-
ton had been understood for a cOnsid-
cradle time, but emphasis was laid upon
the fact that no other financial concerns
had any connection with the affair. and
that the event was due solely 70 one IN
fortunate business enterprise.
The failed firm, in other words, was IN
terested in many ventures, all Of which
save one proved to be established upon
a sound basis. But tho matter. however.
considered obviously, again brought up for
discussion the more or less unsatisfac-
tory state Of the bond market taken, as
a whole, that has been matter Of gen.
eral comment for many months back.
Dull Since Last Fall.
For a variety OF attributed reasons the
bond business has been duh ever since
the beginning Of last fall. Some Of these
may be traced back TO the circumstance
that at the time stated the market was
sWamped with large issues of railway SCI
curities coming on top OF flotatlons, al
most equally heavy, of municipal issues.
But a broad cause of complaint among
bond houses has been that prospective
investors expressed themselves as unwiI-
ling 10 buy securities Of so-called stand.
ard grade yielding from 4 per cent to ~
per cent, and declaring that the present
high cost Of living forced them to take
up with other more speculative issue.
even If these latter purchases were dis
tinctively hazardous.
4 large part Of the old-fashioned bont
business has thus been diverted into new
channels. such as irrigation bonds bear.
ing an advanced rate Of interest. and foi
these there has been a great sale.
To add to the adverse influence Of tho
failure referred to the foreign markets
were depressed to-day. and London
turned up as a seller OF between 25.OOt
and $1,000 shares Of stock because appar-
Cl4llg u d 4CNAl4 CllIu u lAlD u tLAAAlt4l
Balkan difficulty. and a threat OF war be-
tween Greece and Turkey.
No Great weakness.
Whether or pot the stock market re-
ceived definite support IN its early trad
ing it did not in the period show any
material weakness.
Prices opened somewhat lower than
they closed yesterday. but afterward dis
played a stronger tendency, and held
until the last hour Of business at a level
but slightly lower than that which pre-
vailed on the day before. Then prices
began TO crumble, and sold of on the
final trade rather rapidly.
a feature of the business was. as has
been the case for several weeks, a series
Of declines in stocks for which there is
poor market, and which have recently
been the subject Of active and doubles!
unjustifed pool" speculation.
A particular attack was made tOwar,
the end of the day upon the United
States Steel common shares, and III,
stock made a new low record quotation
for the year. The Amalgamated Copper
and other metal stocks were also de
cidedly weak, and final prices were prett!
nearly in all instances at the days low
est
Aside from the news Of the failure o.
Fisk and Robinson, the days fnancia
developments were unchanged.