The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-10-06
GENERAL DECLINE
IN STOCK MARKET
Brokers Seem Satisfied Over
the Recent Advance
BIG DEMAND FOR BONDS
Due to Purchases of Land and
Automobiles Which Tends to
Keep Stocks Down

few York, October 5.-The selling of
cks which turned prices downwards
ay, represe7'sd part the feeling OF
; t-rt-aeHa as-r extent of the adj
e aifs and the profits
-1r misgiving over
# f. } to accomplish
-N - ..iy awakened de-
f oonds which was being harm
ed by the action OF the stock market was
q potent factor in checking the organized
efforts to further the rise in stocks.
Light is thrown on the revival in the
bond market as we'll as on the events that
precede 1t by the statistics of new capital
issues. which have been made up by
the journal of Commerce.
For the third quarter of the present
year just ended this compilation shows
new issues of a par value of s194. 455,OO0.
This compares with SAT-, 147 900 in the sec
ond quarter and $685. 900 in the first
quarter, making an aggregate for the
first half-year far beyond any precedent
in the history of the New York money
market. Moreover that prodiglous semi
annual output was a elimination of a
flood of issues for the preceding year
which reached a total of $1.63 ,620,6S0. The
slowing down in the output shown by the
third quarter of the present year was
closely parallel In the London market
where a similar heavy congestion of new
securities had resulted from the first
half years output.
At the same time 1t is known that the
banks throughout the country have APP
Piled like restrictive force on credit
expansion for land and automobile pur-
ohases, irrigation projects and other
terprises. The dimnution In the rate of
the supply offered for new investment is
seen therefore. to have reached a very
large total. A gradual process of diges-
ton has gone on in the meantime which
has reduced the large holdings left on the
hands of underwriters in the glut of new
offerings early in the year. Dealers in
bonds have come to the underwriters to
replensh their supplies and savings
banks and investment institutions have
become buyers. This helpful process has
gone to the root of the recent difficulties
and the most favorable auguries are
drawn from it.
At the same time it Is recollected that
the difficulty grew partly out of last
years excuses in stock market specu-
lation at time when more substantial
requirements for capital remained yet to
be supplied and bankers deprecate neat
move likely to repeat that mistake. The
complaint of the life insurance COM
panies Is cited that they have had no OPP
portunity to liquidate their securities
which the new insurance law forbids them
49, ,x.1
The heavy shrinkage in new output of
securities for the third quarter, moreover,
represents a policy of restraint and self
denial on the part of the railroads and of
corresponding reductions in outlay and In
consumptve demand for commodities.
From this 1t is felt that the heavy new
bond issues are deferred and not aban-
doned. AS explained by one authority.
1.-THE biggest bond underwriters are clear
ing their shelves preparatory to handling
new issues"
The fear that premature revival in
the stock market will interfere with the
orderly REIMBURSEMENT of the needed fl
nancing by bond issues has an Influence
In restraining the stock market. The revo-
luton in Portugal was of minor effect on
the days market.
Expectation of a poor showing to be
made by next Mondays report of October
untitled tonnage orders of the United
States Steel corporation weighed on sem
timent. The tone of the coppers was
strong in the belief that curtailed produc-
ton last month will make a better show
ing In the forthcoming copper producers
report
Time money was reported slightly easier
In tone but foreign exchange was strong
and cash continued to go from New York
to the interior
Bonds were heavy. Total sales. par
value, $2.964000.
United States bonds unchanged on call.