The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-27
LIQUIDATION OF
STOCKS is HEAVY
Values Melt Away Under Pres
sure Of Selling
METHOD IN THE SLUMP
In Cold Blood and Prices Touch
New Low Levels for the
Season

New york, july zb.--f orceu iiquiua'io"
Of stocks, while banking and financial
interests refrained from offering support
played havoc with the stock market to-
day. So rapid and comprehensive a
shrinkage of prices is witnessed rarely
except in periods of absolute panic. There
was some selling today by holders through
sheer fright at the rapid melting away
Of values. but for the most part the
selling was done in cold blood and with
the systematic determination of sur
gicaI operation. Lack of immediate news
which might be held to Indicate sudden
and violent changes in conditions affecting
values pointed to an accumulation OF in
fuence to account for the movement
Absence of the usual talk of embarrass-
ments on such occasions was taken to
prove the selling to come from sources
outside the immediate stock market cir
Gle and to represent losses from large
resources which amounted to impairment
rather than wiping out of fortunes There
was every indication to warrant the as
sumption that some heavy speculative
accounts were in process of closing out,
while at the same time a thorough house
cleaning was going on amongst the lend
ers of money on collateral looking to the
wedding out of undesirable loans.
Occurrences in the immediate news were
disregarded, the United States Steel quar-
terly meeting, to be held after the mar
ket closed almost dropping out of the
consideration. The declaration of the
regularly quarterly dividend was dis
cussed with only languid interest, as
likely to throw light only on past con-
ditions without increasing knowledge of
present or future situations. The re-
action In the corn market pointed to re-
lief from the more excessive weather
conditions which were believed yesterday
to be threatening the prospects for the
harvest The money market was easy
and the rate for call loans ran off to
the lowest level touched in several months
which Influences toward replenishment of
the supply of bank cash continued active
Nv at work. That acute apprehension
was at work was obvious, nevertheless,
from the swift drop in prices to a level
for which it would be necessary to go
far back into the year 1908 to find any
parallel at the stock exchange.
Reading at 1870, Union Pacific at 1524.
United States Steel at 61A and Southern
Pacific at 103 will offer graphic sug-
gestion of what occurred In the days
stock market. Even more sensational
were movements in stocks which are
not the favorites of the professional trad
ers. operating in and out of the market.
and for which the consequences of forced
liquidation were most hurtful- Southern
ID. T3ui 1x-ou mr. II
Louis, Southwestern preferred, Rock Is
land preferred Republic. Steel preferred,
American Steel Foundries, Westinghouse
Electric, Central Leather and others were
forced, down from s to over II points
There was seen in this list the evidence
of a conclusion that hopes of increased
or initiated dividends had slender foun-
dations in face of the reactionary tend
ency taken on by trade and business
Coming without any sudden shock of
circumstances to unset the order of
things, the days movement was espe-
cialIy impressive Its scope and its indi-
cation of a consensus of widespread opin-
| Ions cannot be denied, whatever its source
The consensus clearly amounts to a de-
Termination by bankers, financiers and
ruling authorities generally In finance,
Ito retrench resources and to be pre-
pared for a strain in the coming months
There was some show of relief In the
hast hour of the day by reason of the
drastic purging process to which the mar
|ket had been subjected but 1t was ac-
companied with appropriate signs OF ex-
|haustion- After ra1lying 1 to 2 points
and even more from the low points of
the day. prices sold or again and the
kiosipr tone was much unsettled
Bonds were weak Some of the low
Erade speculative issues showed losses
corresponding IN violence with those OF
ktocks.s Total sales, par value. $2,515.-
boo. united States bonds ware unchanged
pn call