The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-19
FEW CHANGES MADE
IN STOCK MARKET
Foreign Influences Keep the
sin. Market Stagnant
TRADING IS VERY LIGHT
Dealings for the Day Are Smaller Than
Any Day This Year or Last-Gold
Continues to Flow From the
Bank of England

New York, May 1S-In seeking an ex-
PLANTATION for the present stagnant con-
dition of the stock market, today's atten-
ton was turned to the foreign exchange
situation. The persistent hardening of
foreign exchange rates since the break
caused by the first reports of large sales
OF American securities to foreigners has
begot the fear that the representations
of these allies were exaggerated and part
ly ill-founded. The difficulty in obtain
Ing any authentic information on the
subject from the bankers Immediately
concerned adds to the doubts which have
become to be entertained. The suspicion
that has grown up as to the sales of
bonds actually effected causes a reversion
OF discussion to some unfavorable con-
oltions which it was hoped to have re-
heved by the freer course of foreign sup
plies of capital.
Ii Is to be said that conditions in the
foreign exchange markets are much con-
fused and the difficulty is thus increased
or reading the supposed effects of sales
abroad of bonds. There are bulls and
pears In the exchange market just as in
stocks, and their operations of late are
said to have been unusually bold and
speculative and their opposing efforts to
conceal the real position correspondence
strenuous. The first reports of large sales
OF American bonds abroad are supposed
to have been seized upon by a speculative
party of foreign exchange bankers to sell
large amounts of exchange against
which they expected to buy the bills
offered against the bond sales. On the
other hand, the negotiators of the bond
sales saw the decline in exchange rates
and the reduced profit on the sale of
their bills against those sales with no
great relish and the rebound in ex-
change is under suspicion of manipulation
to correct the situation in the interest
of those banking interests.
The uneasiness of the shorts in foreign
exchange would be aggravated of course,
by allowing doubts to grow of the reality
of the reported sales of bonds. Genuine
strength in foreign exchange is indicated
by the course of foreign markets and
the sales here of stocks for foreign ac-
count. The troubles incident to the put
ting af1oat of fraudulent cotton bills of
lading also constitute an element in the
scarcity of commercial bills of exchange.
The hardening course of the private dis
count rate in London today dissipated any
expectation that the bank rate would
come down tomorrow. The continuance
of Withdrawals of gold for sundry desti-
nations from the Bank of England makes
1t likely that protection will be sought
by making the present bank rate effective
In the general market.
With this outlook in the foreign ex-
change market there was a recurrence
Of discussion today of the unfavorable
trade -alance, the existing high price of
commodities and the possible necessity
of widespread readjustment to correct
the discrepancy and to reawaken demand
and restore trade activity.
In this mood of the speculation atten-
ion was attracted to such incidents as
he agitation but shippers again by the
shippers against freight rate increases
by the railroads and a movement against
New highland cotton mills to shut down
for the week on Decoration Day.
The dealings of 245,200 shares were the
smallest of any day of this or last year.
In the hour between l and 2 o'clock today
less than 1900 shares changed hands.
Bonds were easy: total sales, par value,
$1,175,00; United States bonds were I'M
changed on call.