The Birmingham age-herald., 1905-07-02
RALLY IN STOCKS
 STILL DISCUSSED Is the High Movement Backed
 by the Banks PUBLIC IS HOLDING AL00F vanderip Interviews Reflect Rock efeIIer-BriIliant Railroad Coup.
 MeIIen Goes to RockefeI-
 Ter and Rorrows.
BY. W. G. NICHOLAS.

New York, July 1.-The story Is fre- quently heard of late that the great banking interests contributed moral and stock market Just why the banking interests should at this time desire any rise in prices is not made clear to the popular understanding and among experi- enced traders skepticism is expressed as to whether there is genuine earnestness
 behind the movement. Whether there be
 or not the fact remains that the public
 pesists in holding aloof and down to date there has been conspicuous failure to enlist outside help in the game.
 If the ultimate purpose be to make a high market on which to unload stocks that have accumulated on the shelves
 there will have to be change in senti-
 ment before the object can be attained
 Ever bearing in mind that Wall street
 Is manufacturing center-a community devoted to the manufacture and sale of securities-there may be substantial ground for the theory that the banking interests are behind the bullish activity Otherwise the conclusion must be reach
 ed that it has it's inspiration in a profess
 sional desire for action and in a willing
 ness on the part of insurance companies
 and other holding corporations to see
 quotations marked up about the time they
 take their appraisements of assets for
 use In semi-annual annual reports. To such institutions the upward movement at
 this time is very grateful and 1t is more
 than likely that they contributed aetive-
 ly to a marking up of goods
 Frank A. Vanderlip's latest interview | af, I.A t,,A.
 it's effect on business has provoked discus
 sion. Every utterance from that quar- ter is very carefully read and weighed by financiers and business men, not be- cause Vanderlip is of monumental im- portance personally, but because he is
 supposed to represent the Standard oil
 interests in Wall street and to be theif recognized mouthpiece. There was noth- ing especially in anything he said but tho
 fact that he said 1t is regarded as being
 important for the reason that it indi-
 cates an awakening consciousness on the
 part of his employers to the relationship of enlarged gold production to values
 and market quotations. MT. Vandelips
 interview betrays Standard Oil sympathy
 with the theory that an increase in the
 stocks of gold will naturally and logi- cally be attended by higher prices. some-
 thing everybody has been talking about for two or three years. There is food
 for thought however in his further sug- gestion, which has about 1t rather more
 of a flavor of novelty that this seeming advantage may be offset by undue specu- l lative expansion and new development in business enterprise, which if carried too l far, would result in disaster. His in | terview foreshadows a rise in interest | rates on money as the expansion in bus | mess Is very likely to be accompanied | by an expansion or imitation in credits | which might easily be carried beyond | the line of safety into the arena of actual commercial danger. Read between the | lines Mir. Vanderlips views contain in them warning of danger and the more | carefully the subject is studied the more l to place that construction upon what he | has said and upon the thought contained therein. For the moment, however, the | street is blind, and everything except l the suggestion of high prices incident to l the increasing volume of basic money and | the assurance that for many years to come the production of gold will grow l larger instead of less. From an entirely | different quarter but having a bearing l on the revived discussion of the Ameri- can money situation comes the sugges- tion that bank note circulation is in- creasing at even more rapid rate than that of gold money and that by reason thereof there is danger of the paper money driving gold out of the country. Point is given to this idea by the re- sumption of gold exports which may run into large totals before the tide turns Some experts on foreign exchange esti- mate that the outgo may be as high as $40,000,000 on this movement.
 To hear the talk about the brokers offices one might imagine that the entire l s142,000,0o0 of July disbursement will be immediately reinvested in stocks. As a matter of fact only a small fraction of the amount so distributed will be rein vested Immediately. probably not 10 per cent of it. Thjs distribution represents | the semi-annua1 income of tens of thou sands of pe5pia and it is applied by the | fortunate recipients to the payment of household and other current living ex- penses. The July disbursements are lar ger this year than last by 5000 600 or $6. : 0o0,000 and are pretty nearly at record | figures
 Rockefeller's Check.