The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-09
GOOD UNDERGONE IN
THE STOCK MARKET
Prices Fall for the Week With
A Little Recovery
BOND MARKET STRONG
Edward Is Not Altogether AIlayed
But Confidence In the Out
look Ii Established

New York. May S.-The jerky and vio-
Nlent movements of prices of stocks last
week accurately illustrated the sudden
alterations Of speculative sentiment.
Fears of trade recession and of tight
ening money market when the week
opened carried prices TO lower average
level than was reached in the course of
the February decline. The violent de-
cline in foreign exchange rates and the
explanation of it in the placing of large
blocks of securities with foreign purchas-
ers pulled prices up abruptly and sent the
bears scurrying to cover. The sudden
news OF the grave illness and death OF
the King OF England formed an unsettling
influence again in the latter part of the
week.
The strong tone manifested by the mar
&et on Saturday left a feeling of conf
dence that the worst of the shock had
been absorbed, The important benefit Of
the enlistment of foreign capital on a
large scale in the taking up of the new
securities pushing forward for acceptance
needs no demonstration. Sales of securi-
ties to foreign creditor markets is a nor
NAL device for adjustment of exchanges
where the mercantile balances are tenn
porarily dislocated as by the present alb
normal excess of merchandise imports
over exports of our foreign trade. Our
security prices have been maintained at
a level that attracted sales by foreign
holders to the home market.
The exigencies of the London money
market growing out of the deferred tax
collections added to the pressure on the
New York money market and induced ar
tificial attractions for drawing gold from
New York to London. The complexion OF
the bank statement of the preceding week
was proof o.. how serious the drain was
becoming, At the same time the gold re-
linauirhed by New York to London TO
help finance the important government OPP
erations there was a prime factor In the
market relief of the London money mar
ket with prompt sympathetic effect on
other money markets. This relief in turn
stimulated the foreign demand for new
American issues which proved the distinc-
tive feature OF the weeks financial mar
kets.
The effect on this new demand of the
unsettle caused by King Edwards
death will be watched with some anxiety.
Details OF the weeks operations in this
field were vague, and the terms of the
transactions were unknown. That attrac-
tive terms had to be offered was assumed
without detracting from the favorable eff
feet of the market. The lethargy of the
New York bond market and the known
needs OF enterprises for capital pointed to
the ability to make profitable use of the
resources thus secured
The lack of these capital resources cited
is given large responsibility for the check
to productive demand which has led to the
current movement toward curtalment of
iron output. The scale of this curtail-
ment and the continued yielding in the
price of iron made up the most potent in
fuence In the unsettlement of confidence
over the trade prospect which was carry
ing prices of securities to new low levels
for the year.
Anxiety regarding the crops is expected
to play part in sh aping speculative SEN
timent from now on. The extended specu-
lative position In the commodities mar
kets, especially liz cotton, and the ex-
banded credit position of the banks of
the country. are complicating factors.