The Birmingham age-herald., 1904-01-31
BONDS CONTINUE
 FINANCE FEATURE Market Has Been Active for
 Past Two Weeks GATES STARILtS STREET Believed His Optimism Regarding the West and Southwest Is Due to Connection With Standard oil
 Interests = Street Gossip.
GATES sTARILtS STREET
BY W. c. NICHOLAS.

New York, January So.-(Speciall-Con- timed activity in the bond market has been the conspicuous features of the last two weeks in the financial district. Gen- erous taking of profits caused reactioh in stocks, but this does not appear lo have interferred to any extent with the demand for underlying securities. ihis tendency must prevail so long as decided lv better returns can be had on invest ments in that quarter than the money will bring on loans in the Street Call money has been obtainable some days this week as low as one per cent, and six months loans have been made at four per cent and even shade under that figure. With good bonds obtainable on the basis Of five to seven per cent investors will com tinue to take their money out Of the banks and put 1t into that class Of prop ertv. When reverse conditions existed one and two years ago the tendency was to get out of securities into cash. NOW it is plainly and unmistakably the other way and herein lies the great legitimate strength of the markets.
 Activity in bonds Is almost lnVariapiy accompanied by more lively acton Tn stocks and an upward drift or prices. speculators have been first to avail them selves of this fact and the last two weeks have witnessed lively manipulation for rise followed by realizing of profits and reaction in quotations. Incidentally many banks and trust companies which nave been carrying heavy loads of stocks ana bonds, either on their own account or Tor clients, have been Tightening cargo. Ihe result has been free distribution or stocks and the Street at the present time IS well supplied. This loosening up of the situ- ation is clearly manifest in every direc- tion No inconvenience will follow If con ditions continue favorable and the public is given time to recover its nerve without being forced to swallow more than 1t can digest comfortably. Every incipient bull movement is endangered by over anxiety on the part of holders to let go Of stocks and bonds they have been carrying through seasons of sweat" The present situation is not free from this element of uncertainty.
 Col. John w Gates, who has lSnack of seeing and seizing the psychological moment for sprnging an interview on the public and producing the liveliest pos sible effect, caused a profound impression in Wall Street by his recent interview on the boundless prosperity of the west and southwest and the prevailing excellent business conditions throughout the coun- try at large. The same thing had been said by hundreds of others, but it re- mained for him to awaken people to situation the Importance of which had been drummed into dull ears. Having taken the precaution to load up with large speculative line of stocks before gfv- ing out these interviews the western plum ger was enabled to make neat turn in the market, which the Street assumes he has done, although he continues to talk radically bullish. It is said that Mir. Gates has tied up with the Standard Oil inter" ests and has gotten close to the Rocke- fellers, socially as well as in a business way There is basis for the rumor that he is allowed with the Standard Oil in- terests in the southwest, and 1t is not im- possible that some of the spectacular mar ket operations accredited to the Illinois and New York fnancier have the sub- stantial backing of MT. Rockefeller.
 . For more than six weeks H. c. Prick has been in actual command of the United States steel corporation. He has spent most of his time in the Empire building where the street trust occupies two or three floors for it's offices. His word is law in overy operative department of the great corporation. While he has not been given official authority to dictate, it is nevertheless thoroughly understood by the officers of the corporation that he is dis tinctly "TT' and that his say is para mount The recent working reorganization of the company was more the work of MT. Prick than that of any other man. The general plan was left largely to him and the credit of saving from $15 900 900 to s2O 900 a year in the expenses of the company is chiefly his. This is not new