The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-03
SHARP DECLINE
IN STOCK MARKET
Failure of Brokerage Firm
Causes Some Uneasiness.
BOND MARKET SLUGGISH
After An Early Decline the Market
Shows Considerable Firmpess Until
Near the Close when the Drep
Occurs

New York, February 1.-The stock mar
ket today had to digest the failure OF
Fisk 4 Robinson, announced AFTER the
market closed yesterday. Manifestly there
was no great relish In doing so. The pri-
nnsry declines. which we're within l point
Iinsits. brought cut prompt support and
rroveries followed. Specifically, this
measured the influence of the episode In
the days market but the feverish break
IN the last few minutes was clearly trace
able to the brooding uneasiness caused
w II. The failure had features about 1t
that placed 1t out of the usual lines Oh
It's particular business, notably in the ex-
tsnt to which it's commitments were III
bonds of properties in the constructive
stage The liabilities, while large, did
not in themselves give occasion for fears
81 direct consciousness to the general mar
kot. The incident directed now attention,
however, to tho inert market for bonds
in general which has not been lenectuaiiy
rsiieved at any stage from the extensive
apec ulative movement in stocks. This
condition makes a serious flaw in the
financial situation so far as effective IN
Austrial revival Is to be hoped for. The
enlistment of capital, even for purposes
Of refundine the onerous obligations IN
cured in short term loans during the Pc
rfod of depression nas beer difficult and
hafs not satisfactorily relieved the condis
tiony of time loans The railroads find
themselves handicapped also in undertak-
fns new enterprises by the difficulty OF
piscpx new bond issues. Such as have
besn placed have been slow of move
snent from the hands of underwriters.
1t was this we'll known fact that won at
tention for persistins rumors today of
otaer ana difficulties, which would
Rave to be adjusted. One reason ad-
vanced by bond dealers for the sluggish
demand for high grade, we'll secured
Mend issues is the preference of investors
for inferior grades Offering a higher re-
turn The high cost OF living Is blamed
for this pecuiiarity in the situation. Thus
ar tho decline IN the interest rate on
saeney has failed TO correct this defect In
The, bond market. A diversion Of invest
nneal from Axed interest securities into
tteex shares, with claims to give the in
daeflssnt Of profit, Is q. natural tendency
m times q; expanding earnings, or even
sf rrice irhation by redundant currency,
az, increased gold production But the
1Auit IN the present course of events il
That such 4 demand usually follows as
an evsfAcw from the absorption Of bond
3ssues, while now that demand has not
hsca ~ evidence at aHy time.
Tao stock market teday was almost in
ert In. presence Of doubts in the minds
q sg,sculato1s. 4 sustaining effect was
s.t4&Hd for q TIME by the buying of Read
Ing. Tho usvB Of that stock did not 60
hA9und reports from the source Of buying
F1Fe vu&fety OF those reports left an inn
psssrtsn Of unoextaiHty. There was fur
t1ast peessurs on specialties. which suf-
Sssed nsost h yester4ay's Liquidation. The
eerrer group waA hurt by q sharp de-
stths n the price OF copper in London
nd unsatlsfa otory reports Of the general
trade poGtti6n Of that metal. Foreign
stcek nnefissts. ~ well as New York,
wNls sAscesd ~ this factor. The uneasi-
1esg cxes the far eastern question had
apWe sftest On fereEga stock markets.
4hA ne2ttly nnancial statsuasnt Of the
BA4eoA DtAtes tssaeury elbows . total Of
~cupsat Ss4tmptfun At hank notes for the
1beukA 1t g0a&649&, which esta bIishes a
1sY. rseor2 Tho Force OF the return
Asw ~ eustsncr from the countfy's cir
~x4&aean reostwed strfkine illustration in
tAAE Aasasm.
IN Anaf break In prlcee came with
aeeak euadnnNs%s. and In SOME cases sen
nAtjcaal violsncA United states Steel
ecQthern raeiAe, AHe1fcaa Smelling and
hsne otlesv suld lower than In the Pc
r1aA a. sFsstsst wselrnssa iast week. The
e}4eDG tene was S<ry fAssvssh sn6 week..
r4a1e wegA irspe4i4r. fetal sales, par
S41qA &6d4 prited States bends wsfe
nseanxesA % call.