The Birmingham age-herald., 1906-12-09

The sudden collapse in the Nipissng speculation has made spectators a little more cautious about putting their money into all these new mining properties that are now being floated Attention has been directed in this correspondence for sev- eral weeks to the gaseous character of much of this mining speculation and the comment was made in this correspondence several weeks ago that the public was going to be "stung." The public has all ready been stung in Nipissng to the eN- tent of several million dollars. The first effect of the collapse of the Nipissins deal is to throw a cold blanget over the entire mining boom. But, in the end, it will really help the mining boom because it will make investors more cautious and, therefore, serve to stop the promo tion of purely wildcat schemes. There never was a mining boom like this be- fore. Old Nevada. California and Colo rado days have been outdone.
 In this correspondence attention was also directed to the curious methods adopted by Grant Hugh Browne, a busi- ness associate of Thomas F. Ryan and Daniel Guggenheim in floating the United Cobalt Exploration company. While this stock was being offered to subscribers at s1 a share it was being traded in on the curb market above s a share. The asser- ton was made in this correspondence last hetk lldL lnc Gntltu OODdll QuOidllpuo were entirely fictitious. The collapse in United Cobalt came Monday MT. Browne was able 10 make quotations for his stock at a premium of 200 per cent because he had not allotted any to subscribers. lie held off making thls allotlnent for some days until the protests to bis trustee, the Equitable Trust company, became so vigorous that he was compelled to dhot the stock 1t appeared at once that the advertised oversubscription of $l95 ,0O0, ,000 was all d myth. Subscribers received full allotments. The stock was sent to sup- scribers Monday morning and that after noon on the curb the stock which had been quoted around s share week be- fore was offered by brokers in large lots at 5 cents share. At times there were no bids for 1t at all and sales were made around 50 cents. Those investors who were attracted by the fictitious quotations of s and $3.5O for the stock they could buy from MT. Brown for $1 suddenly saw that they had been bamboozled
 Wall street is again waiting for relief to the money market from Secretary Shaw. Call money rates are again high, and there is every indication that they will again touch the very high figures of last December unless there is heavy liqul- dation of stocks or relief from the treas ury department. Wall street has an idea that Secretary Shaw will come into the market and buy $50,000,000 worth of bonds, thus releasing this amount of cash from the treasury The secretary tells every body who goes to see him that he is not going to use the treasury to help Wall street speculators. When he finds that the general business of the country IS being hurt by lack of cash then he will do something.
 Increased railway and industrial divi- dends continue to testify to the amazing prosperity of the country but they do not give any impetus to bull speculation. One trouble Is that most of these in- creases in dividends were long ago dis counted in the stock market by the ln- siders who knew that the increased dis tributions to stockholders were going to be made When stocks were cheaper and dividends were lower then the insiders accumulated stocks for the purpose or selling them at a profit when dividends were raised Some of the shrewdest op- orators in stocks are restin gon their oars and are refusing to take any aggres- sive position in the market. They say that they are unwilling at this level or prices to go in and bull stocks when the financial situation Is such that any un- expected disaster would cause serious setback in prices.