The Birmingham age-herald., 1904-01-17
ossooa win surely be back in his old


 There Is A shrewd suspicion that the wide advertising of the poor business done by the United States Steel corpora tion during the last quarter was, to some extent at least, for effects upon the en1- ployes. It is well known that previous to the official announcement of bad business and decreased earnings, the workingmen in the iron trades were in a state of dis quiet and threatening strikes against re- auctions in pay. Since then, the agitation in that quarter seems to have subsiued, and Wall street no longer hears of i'm pending trouble. There is reason to be- lieve that the official reports of industrial conditions have been quite ss bad as the facts warrant If this be true, It is not unreasonable to suppose that any change which may occur in the situation will be for the better. The report is prevalent that the statement of earnings for the current quarter will show marked im- provement over that of the last quarter in the affairs of the big Steel trust
 A promiaent Wall street operator who has been through a good many wars, tells me that in his opinion hostilities between Japan and Russia would be bulhsh rather than bearish on so rich and resourceful country as our own. He says he should not want to go long on stocks, II he Knew that war was to be declared the next morning, as in that event he should ex- pect to buy at concessions from the shock of the news. The ultimate effect, however, of war would be favorable to this country, and he goes back over his tory of several foreign wars and shows that all of them were bearish before they began, bu1lish after they got started and very disastrous in their after effects. There Is no, doubt that an outbreak of hostilities between Japan and Russia would cause Europe to dump securities in London. and London, in turn, would sell securities int this markets there can be no doubt either that there would be a heavy drain on New York for money, this being one of the principal money centers of the world. But very import ant consideration thus far has been over looked, namely, that this money would be wanted largely for the purchase of such things as we produce in large quantities, namely food stuffs. A large proportion or the money would, therefore, be returned to us~ifi the payment for supplies. War also would increase enormously the ton mage of, transcontinentai railroads. The security markets of the world have been depressed during the last fortnight through fear of war, but it has often DrOVeQ 10 De Ine ease l1dL tut lCdi ol war, so far as financial centers are con- cerned, is worse than the war itself Some of thes shrewdest operators In Wall street would hesitate to take a bearish attitude on the stock market merely of declaration of war in the far east.
 Simultaneous strength of Pennsylvania and the Gould stocks this week was made the occasion fer reviving the story that the differences between the Pennsylvania and the Gould interests were about to be amicably settled. It has been known for S long time that bad feeling existed be- tween these two parties owing to the in yasion of Pennsylvania's eastern terri tory by the Gould crowd, and for a while the Pennsylvania was actively hostile to the eastern extension of the Wabash. A prominent financial authority, who is close to the Gould interests, said this week that so far as they were concerned that there was nothing to be settled but the Western Unions suit against the Pennsylvania for damage, and so far there has been no suggestion of that. AS to the rest, the Gould party is going ahead with it's programme. It will get to tide water eventually, and the Penn sylvania interests appear to have ceased active hostilities. The only thing that could harpen to the Gould situation would be the establishment of friendly relations between the Pennsylvania and Gould in- terests. but on this point the latter are bellev ed to be indifferent. It is difficult to see how concessions from Pennsylvania to Wabash could be bullish on Pennsy1- vania, because the extension of the Great CT Missouri Pacific system to tide water would invade the territory and compete for the business of the Pennsylvania, But on s'rumors" of settlement, Wall street traders have insisted on pulling Pennsylvania. There is a great deal of speculative interest in Pennsylvania stock. It is heavily oversold. A large proportion of the trading element be- lleves that it will sell lower Conserva- tive traders are waiting to see to what extent a shrinkage of manufacturing &C., tivity east will effect the bltuminous coal market, and through the bituminous coal market the earnings of Pennsylvania.
 The investment demand for bonds Is again looking up. and the great banking houses which are fathering a number of new issues by railroad apprehend small difficulty in finding buyers for their goods. Call money is in plentiful supply at 11kto 21a per cent, and safe borrowers can get time money in such amounts as they may need at and 41s per cent This condition was precisely what was looked for, and occasions no surprise in well-in- formed circles. At the same time, bank CTS discourage the wholesale and indis- criminate production of bonds, and will have nothing to do with issues not 1e- ultimately called for They are exercising prudent discrimination. and wild-catting or imprudent expenditures are drowned upon regardless of their origin