The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-07-19
Wall Street Sentiment Is Satu-
rated With PeSsimism
FEELING A LITTLE BETTER
Suspension of Miscellaneous Buying Is
ouragng-Admitted BY Bank
ers That Industrial and Finan-
cial Lines Are All Right.
BY w. c. NICHOLAS.

course OF the market. During the dull
ness Of the past few weeks better feel
ing developed and the nope or a better
market inspired many to begin specula-
tive operations on a small scale. There
was nothing in the situation to warrant
the fear of further bad breaks, and even
the warnings concerning the money out
look were regarded as being due rather
to extreme conservatism than to any ae-
tual bad features in the situation. The
sudden break in the market which be-
gan toward the close of last week, and
has since attained such tremendous pro-
portions has completely neutralized the
incipient bullishness which began to man
fest itself. There is a growing feeling
IN the street that the market is being
made a football of to further the ends
of powerful group of capitalists. To
put 1t more plainly, the sudden break in
stock is directly attributed to Standard
Oil tactics and the way in which New
York Central has Jared has accentuated
this belief 1t Is a fact very we'll known
that in the course of a short time the
Rockefeller interest in New York Central
will be practically a dominant one and
friends of the Vanderbilt interests, as
late last week, said that William K
Vanderbilt was heartily sick and tired of
the whole proposition and perfectly will
ing to shift the responsibility to other
shoulders 1t Is an old saying In the
street, and it is by no means fiction,
that the Rockefeller interests when they
want anything will try to get it at the
expense of values rather than by any
other kind Of market tactics. As a con-
sequence, assuming that the premises
are correct, the whole market has suffer-
ed in order to further the plans the
Rockefeller group. It is not going too
far to say that the street, or. at least the
speculative section of 1t, is at the mercy
of these particular operators.
A decidedly discouraging factor in the
present situation is the practical sus-
pension of miscellaneous investment
buying. Usually the July disbursements
for dividends and interest are followed
by marked activity in this quarter. Dur
ing this month fully $150.000,Oo0 will be
paid out by the banks and financial insti-
tutions as return on stock and bond
holdings. Practically none of this, If the
.s-sssGon of experts be accepted, has
found its way back into the market for
either the speculative or investment ac-
count. The usual investment business
has fallen off greatly also, and this is
amply reflected, especially in the bond
market. The prices of gilt-edged securi-
ties giving substantial returns on the
money invested have fallen to abnormally
low figures 1t is sufficient comment to
note that New York Central 3lk per
cent bonds, which have sold as high as
ia sold within the last week below 96.
There can be no question about the value
OF these bonds, and the decrease in price
certainly can not be traced to the vagar-
les of the stock Other equally well
known and good bonds are selling at
prices relatively low and are going
begging for want of purchasers. Invest
ment demand more strictly represents
the actual temper of the money holding
class than anything else. For this rea-
son, the dullness in the bond market
and in the demand for investment stocks
would seem to point particular lesson.
II is generally admitted by bankers that
the situation In the industrial world and
financial lines is all right but they do
not seem to be quite so optimistic over
the money market That is In fact the
one bogy which they hold up as a warn
ing to those who would seek to bring
about heavy speculative movement. It
is very difficult to discover wherein the
trouble lies in the money market There
is. OF course. the example of last year
with It's stringency and malSe-shift poll
cy to induce conservatism, but the feel
Ing now, especially among bankers seems
TO be of the ultra kind. Factors that de-
termne the situation In the money mar
ket are, on the whole, favorable. For
the past six months. at least. the market
has either been dull or subjected to
drastic liquidation. There has been no
speculation to amount to anything which
would cause a drain on the monetary
resources Of the banks Gold exports
there have been, but not on a very heavy
scale. and the inflow of gold from the
Klondike has been earlier than usual.
Currency from the interior has return
ed up TO the present time in unusually
heavy volume. and II private reports and
the government crop report be taken to-
gether and an average made, the crop
average this year will be decidedly less
than 1t was last years consequently the
demand for money from the west and
southwest for crop moving purposes
should be accordingly reduced There is,
of course, the prospect that the Panama
canal payments will be made through the
medium OF bills of exchange and the &C.
tual money held in this market. Banking
interests are seriously opposed to any
heavy speculation, because of the money
market but ii does not seem as If there
are such great grounds for worry as
some of them would like to make appear.
During the past month there have been
all sorts of rumors of certain specula-
tive interests In the street being in trou-
BILE. The variety of names suggested
leaves one In doubt as to whether there
was any actual foundation for any of
the stories or not. 1t is a fact of course
that some of the plungers of last year
are very much chastened in spirit and
weakened in bank account by the sharp
reverses of the past few months Gossip
has had 1t to be specific that a certain
form of railroad man who was identified
with the Louisville & Nashville deal had
suffered severely This can be denied
Specifically but one thing of interest in
connection with his affairs can be as
serted with equal positiyeness. ~ is a
fact that the Iowa Central and NTinnea-
polls & st. Louis are for sale, and at the
first up-turn In the stock market they
will be sold. The purchaser Is not def
nitely known, and 1t would be idle to
speculate. Denials will be, of course
Forthcoming. but private information on
this subject is nsstent.
Disappointment has been voiced several
times al the failure of the Louisville &
Nashville TO increase the dividend. This
disappointment is. In all probability, most
keenly felt by a prominent holder of
Louisville & Nashville stock who inquired
very prominently in the original coup
by which the road was wrested from the