The Birmingham age-herald., 1910-04-29
! CONTINUED DROP IN STOCK MARKET Liquidation Is Heavy and the | Prices Melt Away Fast STEEL LEADS DECLINE In the Face of Increased Dividend Which Should Be Favorable Factor Steel Declines and other
 Issues Follow
STEEL LEADS DECLINE

New York, April 2S.-The storm of liquidation which broke over the stock market today was a continuation of inhu- erces which have been gathering for some time past. Professional sentiment has been bearish but operators on that side of the market have been timid be- cause of their fear that the most pow erful capitalistic groups were opposed to them. The suspicion that these groups were no longer progressively supporting the market emboldened the bears to pur- sue their advantages today
 The presence in the market of liauidat- Ing orders gave them the advantage and carried prices rapidly downward when they got started.
 The position in United States Steel was accepted as typical of the whole market. It was this that gave that stock it's strong sympathetic effect on the market Evidence that liquidation was in pro- z gress in United States Steel was con q sidered conclusive. The fact that so 2 Favorable a development as the increase Fl in the dividend on that stock should be Ztaken advantage of, to push the selling demonstrated the over-extended specula- # tion in it. This selling might be prompt # ed by the pressure of lenders of money ,zfo carry the stock or by fears over the .=frade prospects on the part of holders Signs of both motives were discernable l in the calling of loans by the banks and the rise in the call loan rate and in the movement among iron producers to cur ]. tail products and thus check the exces sive supply which Is forcing prices down. ward. The weekly reviews of the iron 5 trade by the accepted authorities in the trade today centered attention on this tendency and made srtong influence in the days trading.
 The importance attached to the iron trade as a barometer of general trade
 conditions made this news influential in
 increasing the feeling of anxiety over a
 possible trade recession. This feeling has arisen by reason of reports of hesitation in various lines of business and of the high prices of commodities. It is felt that these high prices have involved difficulties in all directions.
 They strengthen the contention for in- ler ases in wages which are being con- eeded in all departments of industry. XThey have tied up a large volume of *credit for the purpose of holding com 1modities out of the market in the effort
 to keep up prices, They have increased the need of money in the ordinary ex- |tchanges and so have reduced the sup plies avilable for investment and are thus responsible partly for the lethargy
 of the bond market. They have para | lyzed the foreign demand for the lead ing agricultural products and thus piled up the country's debit balance for the payment of which gold is going abroad For these and kindred reasons it haa been felt that speculative defation was a necessity primary to the establishment of sound conditions.
 Anxiety is felt, nevertheless, over the conduct of this condition. The solcitude
 expressed today over the situation in the
 cotton market is an example of this feel
 ing. Tomorrow being the first notice day
 fin the cotton market, involves the obliga-
 tion of buyers of cotton to accept deiv-
 cries of May contracts. The latter set
 clement to come when May cotton sellers
 are called upon to deliver is still more
 dreaded.
 The approach of the May money set
 dement's converging the weeks gold
 exports complicated the money position.
 Loans were called by the banks and the
 resulting I per cent money rate was the
 highest touched since the first week in
 January. A sharp reaction in foreign
 exchange showed one effect of the higher
 money rate. The stock market itself
 showed the relief offered by the days
 liquidation in the stronger tone that de-
 veloped before the close. The covering of shorts of course made large element
 in the recuperative power. The close itself was decidedly unsettled
 Bonds were easy. Total sales, par value, $3,3SS.000; United States bonds
 were unchanged on call