The Birmingham age-herald., 1903-11-01
RALLY OF MARKET
 IS VERY WELCOME Banks Avail Themselves of the Chance to Unload Collateral NO DANGER OF REACTION Worst Is Now Over in Securities Mar ket, and Weak Spots Are Located
 New York Municipal Cam
 paign Interesting.
NO DANGER OF REACTION
BY W. G. NICHOLAS.


 New York. October S1.-Banks here and abroad availed themselves generously of the chance to get rid of considerable col- lateral held by them for account of friends and clients The rally in the bond and stock market was not unwelcome to the banking institutions as it enabled them to tighten their loads materially. There are times when banks car become overloaded with securities and when this class of collateral becomes almost as undesirable and unsafe as real estate in seasons of depression There has been ton in this respect, but the money lenG- CTS are emerging from their difficulties and conditions are decidedly improved from the conservative banking view point. The institutions and individuals who have been selling their securities to raise mon- ey and reduce their obligations include those of all sizes and grades of import ance. The result is an accumulation of cash in some quarters where there is an absolute necessity for capital to be earn ing money, and these interests find them selves confronted with the lack of de- sirable borrowing demand. This condi- tion accounts for the inquiry which has sprung up for bonds, an inquiry so ur- gent that it has stimulated considerable speculative activity in that quarter. Many experienced traders have been put ting their speculative capital in low priced bonds during the last month, be- lieving that good returns can be secured on that kind of investment quite as well as on stocks and that the outlay would be attended by less risks. Results have proved this to be the case. Insurance companies and savings banks have been the largest buyers of bonds, and many millions of dollars of their cash have gone into that class of securities. h. surance companies are obliged to keep their capital busy and so are savings banks in order to meet obligations to their clients and pay interest.
 The belief is growing that the under lying tendency of stocks and bonds will be slowly in the direction of better prices. 1t is the expectation that this improve ment will be exceedingly gradual, and will be felt first and strongest among the dividend paying railroad issues and among the low-priced stocks that give best promise of probable development lOphlilS lO ullllndlt ulNlutHdSs di . many such which are selling all the way from 20 per cent to 50 per cent of par value. The indications are that price fluctuations for the next few months will be within narrow ranges, and that there will be continued dulness. Commission merchants, bankers and brokers antici- pate this condition of things and are planning for a rather tresome winter. Having gone through it's own sweat, Wall street is settling down to wait with as much patience as possible for the rest of the country to go through similar experience. This process is clearly going on, and time will be required for com pletion of the liquidation.
 The view commonly taken of the broad situation by those whose judgment is of greatest value is that the country is in no immediate danger of a serious and protracted reaction. It is now almost certain that the worst is over in the se- curity markets and that the remaining weak spots are located. While there is something of a chill on industrials and the great commercial trade, the aggre- gate volume of business is still above normal. That is regarded as the best feature of the situation as it has devel- oped in a reasonable certainty that the wave of oppression has checked the ag- gressions of organized labor and given capital some assurance that it can pro- ceed with construction enterprises with out further risk of being tied up by walk ing delegates and their associates. La Dor unrest has been for a year or more considered the most dangerous element in the business situation. and now a check has been put to the so-called unreasona- ble insistence of the agitators in that field permanent peace is looked for, something which must inevitably work to the general good. It is time that the country was taking a rest-time that peo- pie were giving themselves q season for sober reflection and pause in the wild rush to accomplish ten years work in a few months The pace was too fast.
 Amalgamated copper has contributed to the enlivenment of the Wall street all the week. That stock was begged" by the Standard Oil specialists in control of the property and to the sur prise of many professionals it eXper- fenced a sharp advance after the adverse Montana decision, instead of breaking all to pieces as anticipated. A big short in- terest was squeezed and now the talent is in doubt as to what course that prop erty is likely to take in the near future. In the metal market the price of raw copper has been washed up" both here and in London on theory that sus- pension of operations in Montana will lead to an exhaustion of supplies and the establishment of quotations on a perma- nently higher basis. It is claimed that there are few buyers for the metal at the advanced figures made, and that the play is entirely speculative. Specialists in Amalgamated Copper are having some trouble in making it clear why that par ticuar stock should advance as se- quence to entire stoppage in production On the theory they are operating. the argument might hold good that if the stock is entitled to a point advance be- cause the mines shut down for six months, 1t is logically entitled to a 30 or 100 point rise should the mines be aban- doned altogether. The total extinguish- ment of the mines might even put Amal- gamated back to $130 a share But, then. operations in Wall street are not con- ducted along logical lines so what's the odds? At present quotations, the Amal- gamated Copper properties have a mar ket value of approximately $55. .O00,0 900 as against $200,00O,O00. It is notorious that the insiders worked out of the bulk of their holdings. but upon that point there is no difference of opinion among those who should be advised to a limited ex- tent as to the facts. Copper experts are widely at variance in their estimates of the future of the Montana Copper prop critics. Some hold that they will be practically abandoned in the next few years and that the center of copper pro- duction will be in the territory now part ly occupied by Senator Clark in north western Arizona and a district almost as great in Mexico. Clark's United Verde properties are said to have over $400.- GOO, 900 worth of copper in sight. much of