The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-26
GENERAL DECLINE
II STOCK MARKET
~aa gfsss onal Legislation Is
Give as Main Factor
MoEEY MARKET rs EASY
'cfffn q cts Show Better Tone But
ffi --.., to Help New York and
Prices Drag Along Slow
ly Downward

New York, May 25.-Reports of the
proceedings in the United States Sem
ate today were followed by weak
ening of prices of stocks and active
selling all through the list. This
proved decisive on the uncertain sag
ging tendency of prices which had de-
veloped earlier and which had been
carrying prices steadily downward from
an opening level slightly higher than
last nights closing prices. The drop in
the market was in contrast with the
better tone of foreign markets and with
the improvement of some of the ele-
ments in the situation that have been
dreaded.
The London conditions seemed to be
relieved by the progress of the stock
market, settlement and-lby turn to-
ward ease in the money market there
which was reflected in a further de-
cline in foreign exchange rates in New
York. While London progressed no ex-
rectation of reduction toward official
discount rate of the Bank of Eng
land and while carry-over rates for
settlement were higher than two weeks
ago, speculation there was cheerful on
the expectation of easing money rates
This expectation to be sure was based
on the rumors that gold would be re-
leased by the Bank of France for ship
mem to London and a further fall in
the sterling exchan rate at Paris was
In consonance with this hope. There
was the same vagueness AMI lack of
authority about these reports as have
characterized the operation of placing
American bonds in Paris.
Formal announcement of the distri-
button effected of s1o,ooo,O 900 Of Cleve-
land. Cincinnati, Chicago and ST. Louis
bonds among French subscribers was
. meager detail of the large agger-
gate transactions which have been the
subject of these rumors.
The reports have bad a sequence also
In some unfattering insinuations as to
terms that had to be accorded to the
buyers to effect these sales and the
consequent high cost of American rail-
roads of capital. 1t is pointed out that
the railroads are embarrassed as be-
tween their canvass for new capital and
their plea for Increased carrying
Ing profitable earning powers on the
one side and of pleading poverty on
the other.
News that Chicago municipal bond
offer ats4k per cent had brought no
bids as high as par was discussed as
a sign of the times. So was a re-
quest of the Denver Reservoir Irriga-
ton company Tor an extension of time
on matured obligations
Another sign of Improvement in the
credit situation was the report from
Chicago that interior banks were pay
Ing of loans to Chicago banks on a
scale sufficient to offer resources seek
ing employment in call loans in New
York.
The continued evidence of liquidation
of the grain and cotton market is taken
as a matter for encouragement for the
4 same reason. 1t seemed, however, that
l the call for liquidation applied with
4 equal force to the stock market and
\ overbalanced any benefit there might
have been to speculative sentiment from
the improvement in conditions which
was being effected by the process.
There was discussion of the back
ward demand for wooden and cotton
products and the influence of this on
\ the trade situation in general. Iron
and steel advices retained the more
cheerful note which has been heard
Hfrom these sources recently.
The progress of the railroad bill in
the United States Senate Is taken by
the financial district to show growth
If the more radical forces of control
M y ad affairs. The extent to
% decline ran In the late deal
Aiza a noticeably disquieting eff
NJ ing to the lack of adequate
~ xlsis Ion in any of the known fac
eseass were irregular. Total sales.
Ar Z lie, $1592,000; United States
tssn1s ere unchanged on call.