The Birmingham age-herald., 1903-11-29

sion houses and rich brokerage firms whu lent theniselves to the promotion of in dustriais Almost without exception they committed themselves beyond the linn it's of prudence and In the end found themselves loaded up with unstable se- curities. Latterly banks have been sharp ly. discriminating against all industrials except those that have gone through the fire and been thoroughly tried out at eVefv point The common issues are dead weight on the market. They have no longer any pface in the list of collat- erals accepted by banks for loans. They are thrown out and are that much han dicap on the credit of the holders who are in the borrowing line. Of the SOLO, 000 GOO in common stock of the United States Steel corporation it Is estimated that fully 50 per cent is on the street. Originally the entire amount of common stock represented market value of about $250iO00000. At present quotations it's value is less than s60,00O,OOO The eol-. lateral value Is nil. The street holdings represent a, shfinkage of $40 share, or about sl00 QO00o0. There has been at least a proportionate loss iii nearly every other new industrial. A still larger percentage of this loss among the minors falls upon wan street houses. There has been a. very narrow market for the securities
 
 less opportunity to unload on the public. I have little doubt that the street is car ryfrfg a $500 .000, 900 e'scaB.o In other words it has this amount of stuff left on it's hands for which. 1t can find no market at any price and which have no bankable value when it comes to borrowing money
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 Nswspaper men in Wall street note with some satisfaction ,an agreeable change ih the atmosphere of the banking house of J. F. Morgan X Co. They find it much easier to interview the great men about the concern than formerly and a perceptible thawings out Even Mir. Nor gan himself has become accessible and evipcess tendency towards cordiality It is said that MT. Morgan is much dis appointed over the reception accorded the encouragement that his house had aban- doned the bond conversion scheme in con- ection with the steel trust. He had ex- peeted commendation, by the newspapers and the public for getting out of deal which had been so harshy criticised. 1n- stead of that the popular verdict seems to be that he was forced to take the step and that in so doing he yielded to the de- mands of Mir. Rockefeller and his asso- ciates in the Standard oil party. Mir Morgan clearly does not enjoy the chang ed attitude of the public press towards him. This is not to be wondered at for he was the recipient fpr three or four years of uninterrupted adulation and one does not at first take kindly to a change of diet in this respect MT. Morgan is an exceedingly hardy individual how ever, and will doubtless continue to wor- " aiong, after his own fashion regardless of what disappointed speculators may think of him.
 RnDreSpntafivee of fpapnfa1 iptaraeta are 10th to disctiss the pending Panama complication. Privately there is a strong sentiment among conservatives in the financial quarter against the admnistra- tions move. This feeling may not be based on broad political moves foreshad- owing radical progressive action and this case is no exception to the rule. At the same time there is an indisposition to openly criticise the President for the step he has taken There is background ap- prehension, however, that the departure may not be productive of entirely bene- fcial results and that the nation may be embarking on dangerous seas. There is, however, a strictly financial aspect to the Panama question and that is wheth- CT the deal can be financed without some disturbance to the money market. The prevailing opinion is that there will be no trouble on that score. considerable part of the s4oOO0,000 to be paid the own CTS of the old Panama canal will remain on this side, speculative Americans hav- ing taken oyer between 40 and 30 per cent of 1t according to common rumor. The indemnity of the Americans interested in the scheme has never been publicly dis closed although no great difficulty would be experienced in getting warm on the trail of some of the more important ones in the combination. Altogether not more xxi1f 10 ottt of ha country in payment of the Panama con- sessions, including the s1OO00, GOO to go to the isthmus. Part of the latter amount may be held here against the seeding re- publics share of the old Colombian debt of Si5,00O000. It may be found expedient to make provision for the payment of fair proportion of the Colombian debt in order to avoid complications with foreign holders of that governments obligations.