The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-07
PRICES DECLINE
IN STOCK MARKET
Illness Of the King of England
Causes Weakness
SALES ARE VERY LIGHT
Wall Street Is Affected BY the Strained
Condition of Financial Affairs in
London But Not to Very
Great Extent

New York, May 6.-Explanation for the
action of financial markets turned to the
principal news event of the day, the
alarming Hines sof the King of England.
The marking down of prices at the New
York stock exchange was INTENDED Cd
viously as an adjustment to an expected
shock. The actual volume of sales was
not large, but the proportion for London
account was greater than usual, and was
sufficient to give clear notice of the dis
position of the London market to avail
itself of New York facilities for turning
securities into cash.
There Is no clear reason why the pass
ing of the English succession to the
throne should affect the value of Amer
lean securities or for that matter English
securities The precedent of the death
of Queen Victoria showed financial mar
kets unruffled.
The selling of stocks for London account
In New York at that time was over in a,
day, and made no effective impression on
foreign exchange or money rates. The
present situation differs in some respects
both political and financial.
The effect of a passing of the present
King Of England on the strained political
conditions in that country received con-
sideration for its possible influence on
financial affairs. Views in Wall street on
the matter were vague, and probably not
too well informed, but their influence In
begetting cautious spirit in the. speculas
ton was none the less on that account
felt. AS 1t happens the money position in
London at the moment is extraordinarily
strong owing to the measures of recupera-
ton recently taken by the Bank of Eng
land in preparation for the strain of pay
Ing the deferred taxes which have been
paid yet only in small part, leaving the
central banks position practically unm-
paired at its point of greatest strength.
The constituencies of the New York mar
ket to bad news was increased by the
fact of the sharp advance which has oc-
CURED in the course of the two previous
days. Sufficient profits had accrued to
offer inducements for selling to realize.
There was disappointment perceptible
over the lack of formal confirmation of
the reports of bond sales to foreigners.
The subsistence of large offerings of
bankers bills In the foreign exchange
market did not help to sustain confidence
IN the outcome Oh peHulHS HeSOIldliOHS.
The stock market was not left without
support and an effective mid-sessinn rally
resulted from these operations. 1t was
accompanied by special strength at one or
two points, especially Brooklyn Rapid
Transit. That stock and Chesapeake and
Ohio were Influenced by rumors of divi-
dend increases. rally also followed the
publication of the preliminary estimates
of the weeks currency movement. From
these it appeared that the banks have
been gaining large sums in cash by re-
ceipts from the interior. AS no gold has
gone out this week, and the sub-treasury
has taken only a small sum from the
banks, the probability is that they have
added between 100000 and 100000 to
their cash holdings this week. The money
market was easier today, both on call and
on time, In consonance with this promise
Bonds were irregular. Total sales, par
value, $2.3s1,0O0. United States bonds were
unchanged on call.