The Birmingham age-herald., 1905-12-25

the public to enter the market more free- ly than for many weeks past, and by all lowing the earlier public buyers to make some profit they have naturally been able to encourage and widen the new buying interest. There has no doubt, however, been much realizing under cover, and some of the rich and heavy holders of securities have been freely unloading dur ing the past week or two. Stocks which are selling at unduly high prices are too well known to require mention, but at their present altitude they are a menace to the market and should be carefully avoided by either spectators or inves- tors Another element of risk in the mar ket is the sensational activity in copper stocks. Here, too. the process of un- loading upon the public is actively at work and all sorts of questionable prop critics are selling at unreasonable prices. In fact of this reckless speculative &C., tivity is the unsatisfactory condition of the money market Funds are still too scarce for speculative purposes, and we are in imminent danger of sharp squeez- ing in rates before the close of the year. When many stocks are selling out of all proportion to their intrinsic value; when credits are extended to a degree never experienced in the history of the coun- try, and when money commands such exorbitant rates as have beeen paid dur ing the current month, it Is time that some restraint was placed upon the spec ulative excesses that are now threaten ing the Street" Bankers will soon be obliged to discriminate more closely both as to collateral and to borrowers.
 The sitaution is such that if any fur ther trouble develops we are likely to see a sharp reaction. Very little con- ictc In the pregnnt level Of values; and that means a rush to sell and take paper profits as soon as 1t is gem orally recognized that the turn has been reached. There is no short interest Tn the market of consequence to support values in such a contingency, and the invest ment demand will remain very limited factor while prices continue at the present high level. Money is auready freely seek ing other channels of investment going into real estate or other more profitable directions
 As we have repeatedly stated another danger confronts the market which ap- pears to be constantly overlooked, and that is the strain upon Russian credit growing out of the hopelessly chaotic state of affairs which there exists. Only by aid of the most powerful bankers in Europe is still more serious break avoid ed in Russian securities. It Is to be hoped that such efforts will be successful and the collapse of Russian credit averted. Should disaster occur. however, 1t is folly to imagine that the New York market will escape its effects. for London would be called upon to assist Paris and Berlin. and in order to do so. Amercian stocks would be the first to be sold.
 As the year draws to a close 1t is easy to find abundant material for self-con- gratulation. The country has experienced a year of unparalleled business activity, all records being passed both as to vol ume and profit. Naturally such an era has begotten many unfortunate excesses- Business methods have become less rigid; overconfidence has taken the place or or dinary caution, and continued abuses may sooner or later threaten the country with a setback leading to an era or de- pression. At the same time. however, there is no occasion whatever for taking 8 discouraging view of the future. On the contrary. there is every reason for hope fulness in the business world. Our farm CTS. who are still the backbone or the country. are enjoying extraordinary pros