The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-19
BUYING OF STOCKS
STILL VERY ACTIVE
Difficult for Wall Street to Be
BeariSh
BROOKLYN RAPID TRANSIT
Has Furnished the Fireworks of the
Week In the Stock Market-The
Tobacco Trusts Extern
sive Operations.
RY w. G. NICHOLAS.

BY w. c. NICHOLAS.
New York, August 1S.-Wall street finds
1t difficult to be bearish in the face of
existing business and agricultural condi-
tions although there is to be found a
strong and viciously aggressive profess
sional element fighting prices at every
step. This bearish faction refuses to see
health in any quarter and insists that
the country is on the verge of a great
setback. The burden Of the song is that
the Disconnected masses are in a state
of political unrest bordering on reyolu-
tion, capital being the object of attack;
that speculation has gone mad every
where and In everything; that the balloon
is distended to the bursting limit; that
stocks are too high and that the shelves
are overloaded with unstable bonds
which are being carried by the banks and
trust companies for the big combinations
of speculative bankers. They declare
that an immense amount of capital is
locked up that way which would other
wise be performing a more legitimate
mission. 1t is upon this alleged weak
ness in the banking situation that the
bearish contingent places its chief reli-
anee. That the danger really exists lacks
proof beyond the unsupported claims of
the oracles of a bearish contingent
Meanwhile the buying OF stocks con-
tinues and sentiment is slowly becoming
more bullish, due to huge crops and ex-
traordinary general prosperity.
There is more intrinsic value in rail-
road and Industrial property now than
ever before, probably one-half more in
railroads than ten years ago and two
thirds more in industrials. There has
likewise been a tremendous increase in
capitalization. This increase in industrials
has been very much greater proportion
ately than in rails, partly because the
era of combination in manufacturing wilt
messed its greatest development within
the last seven years, whereas the trans
portation interest has been steadily pro-
gresslve for more than half a century.
Latterly the tendency of management in
nearly every department of active bust
ness has been to renvest In plant a
larger percentage of earnings than for
merly. 1t is due to this fact that there
has been a more noticeable increase in
intrinsic value than under the old re-
gime. There is more permanency to busy
property than formerly and less liability
to deterioration. Investments become
safer year by year, according to the the
OTleS OIL SIuuenlS anu
whose trade it is to note current phe-
nomena and draw wise deductions there
from.
The Fireworks.
Brooklyn Rapid Transit furnished the
fireworks of the week in the stock mar
ket incidentally, 1t also made an inn
portant contribution to the Hearst cause
of municipal ownership of public sutili-
ties It's open defiance of the law and
the Incorporate language of its officials
supplemented as they were by the bru-
tally of its employees, served to infuriate
an excited population, and intensity the
existing popular prejudice against an
overbearing and poorly managed corpora
ton. The turmoil served well the pur-
poses of hard hitting bear group In
Wall street. and broke the stock of the
company several points. The raiders
have been after B. r. T. for a good
WHILE and they were on the vergee OF
disastrous defeat when this affair came
along to help them out. They now de-
clare that they will not be satisfied I'M
til the stock goes down to zero or passes
to the control of the city. They have
mapped out a large sized campaign. Po-
litically, ,the damage can be more ac-
curately appraised. The row adds 100000
votes to the Hearst count for governor
of New York next fall.
The import movement of gold which
commenced this week. and which prom
ises to continue indefinitely, represents
an advance upon future shipments OF
grain, provisions and cotton. America Is
pledging its crop surplus for ready money
and credit with which to facilitate the
movement of the commodities from field
to warehouse and eventually to the con-
sumner. Incidentally, Wall street should
he the gamer, for Wall street will be
- he Cd n itself
ing direct provision for the funds. 1t can
retain a portion OF the cash at home to
paw the expenses of conducting bull
speculation in the stock market, one item
of such expense being the payment OF
.laundry bills" incident to the washing
up'' of prices on the stock exchange. On
some accounts the market makers pre-
fer a comparatively narrow field in which
to manipulate for rise. The wash bills
are smaller in a narrow than in a broad
market And then 1t Is better from a
professional viewpoint that the public get
in late than early in bull campaign
There is less company on the way up
and distribution can go on just the same.
"They have stopped loaning money or
real estate" was the startling state
ment made by an active and usually eau
tious stock operator a day or two ago
Rv "they" he meant the savings banks
and other institutions of New York that
Are in the habit of putting their money
into mortgages on real estate IN ano
about the metropolis and by the phrase
"stoppedr he meant that they are exer-
cising more than the customary conserv-
atism in investing their funds, having de-
tected a decided tendency to over-specu-
late in real estate. There is still money
to be had on real estate In New York
but none to encourage booms or Wild cat
ting In suburban subdivisions or corr
field lots A summary stop has been put
on unsafe Investment OF trust funds or
doubtful real estate security. To that ex-
tent "they" have stopped and the move
ment seems not to be local to this city
There seems to be concert of actor
among the large lenders In most of the
important communities. II is by such
means that disastrous panics may be
averted ard disastrous reaction. conse-
oiiences of will real estate booming
avoided. In the past the collapse Of rea
estate speculation has marked the begin
ming Of the end of periods of exceptional
national prosperity. This time 1t is the
II 10 tor M off L