The Birmingham age-herald., 1911-01-29
SLIGHT DOWNWARD
 TURN IN STOCKS Most of the Leading Issues Re
 cover Rapidly CLOSE IS IRREGULAR
Trade Conditions Have Become Better During the Past Week and Healthy Business Is Expected for
 the Future
BY RALPH EMERSON

New York, January 2S.-tSpecial.)-Th tendency on the stock market was gen. erally to lower levels, the upward tend ency of prices of yesterday seeming to have lost its force over night
 The recessions, however, were confined to small fractions, with Union Pacific off B and Steel showing the same loss. Pool activities continued in many of the lower price Issues and were reflected in some sharp advances in that group.
 Amalgamated Copper, which was weak Aerly, recovered a small part of the loss and smelters also recovered it's early loss.
 The closing was more or less irregular, with gains and losses divided
 Rumors of negotiations with view to placing block of Southern Pacific bonds in Paris were confirmed today. These negotiations have been carried on for two weeks or more past and every promise of being brought to successful conclu- sion It is probable that the company will dispose of s5o,0o0, 900 bonds, 1t is un- derstood that the bonds will be first mort gage on the Mexican extension.
 lTaue OullOOk dSSuiHeu u DTlBHtef dS- pect this week than has been manifested at any time since the beginning of the year. Not only has there been revival of business in the trade centers, but in financial circles, where healthy bus mess condition has been shown by the eager purchases of stocks and bonds.
 The most important financial event of the week was the successful floating of the New York city bonds. This over shadowed the movements in the stock market, which consisted of considerable speculative liquidation, followed by some recovery The importance of the city bond sale lies in the fact that 1t has made sentiment in favor of railroad is sues now in process of negotiation, both here and abroad, and a favorable out come is expected ih several cases next week. The proceeds of the forthcoming railroad loans will be used in good part for necessary betterments and these can- not be made without exerting some infu- ence on the contrary basic industry and it's kindred branches. This is exactly where improvement is needed at the pres ent time as activity in the iron and steel trade will exercise a great sentimental influence on business generally and would do much to arouse the latent energy of the American people which, in the past. has produced such good results for the nation.
 Of the obstructive forces mentioned last week as likely to play an important part in the rehabilitation ill the buying ca pacity of the south and middle west, and in the unusually strong position of the local financial institutions were strikingly in evidence this week. Though still past incentive to trade improvements is shown in continued exports of cotton at high prices. This week there has been a Hull in volume of orders placed for goods with English spinners, but this is due mainly to the fact that the mills are booked largely ahead. The overflow of the de- mand continues to spread to the conti- nent, and this week there were purchases at one point in Alabama of 4200 bales of cotton for French spinners, and on an- other day 10,2o0 bales were cleared for their account at a Texas port. While the south Is experiencing the benefit of the foreign absorption of her great staple, the middle west is proflting by the exports of corn, which continue on large scale. It Is estimated that corn shipments for some weeks past have furnished an av- craze weekly volume of S1,000,000 in ex- change. Of course, this does not com pare with the exchange made by cotton, but S1,0o0,000 a week is an addition to our accommodating credit balance with Europe that is not to be despised.
 In view of these facts 1t is not. in the least surprising that the greatest recuper- ation thus far in trade should be in the south and the middle west. The placing of the New York Central order for 176,000 tons of rails, an advance of iron products and somewhat better demand for struct- ural steel caused an improved sentiment in the steel trade, but business in the aggregate has not yet reached a capacity sufficient to place the steel mills much, if any, above the production of 50 per cent of capacity. In a number of miscel- laneous branches of trade improvement is being shown, but business has not yet reached those broad lines that means general activity.
 One of the hopeful outlooks for the inn mediate future in the business world is the growing trade with South America countries New steamship lines are being opened up, and much of the business which has been going to Great Britain and Germany will now come to America
 Statistics covering the distribution of the Brazilian valorization stock of cof- fee were made public during the week at the Coffee exchange showing that G. 310,132 bags were on hand at the close of the year and warehoused at New York, Hamburg. Havre, Antwerp. London, Rot terdan, Trieste, Marseilles and Bremen. This stock is valued approximately at $100,O00,000 Tine obligations outstanding against it January amounted to about S65, 000. The valorization plan was de- vsed three years ago by the Brazilian government and a group of leading Amer ican and French coffee and banking in- tcrests, following a tremendous surplus yield of the staple, which depressed the markets of the world. By withholding stock until the demand for it nlaterialized and then releasing only sufficient for prompt needs the Brazilian industry has been protected Vr
 Bonds.
 U. $. ref. :s, reg. .............. 1O0M q. s. ref. 2s, coupon ......... 1OOs4 U. s. Ss, reg. ................ 1O21z U. 5. Ss, coupon ............... .1O2N A~