The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-10-19
SPECULATION IS
At VERY Low EBB
Room Traders Have Hard Time
Getting Profits
STAGNATION Is COMPLETE
Amalsamated Copper Furnishes Only
Exception to Sluegishness-Jumped
Up On Announcement of In
creased Dividend Basis.
STAGNATION is COMPLETE

New York. October 1S-Speculative spirit
was at low ebb in the stock market to-
day. The board room traders had increas-
ing difficulty in scalping a fractional
profit out of the movement of prices as
their own limited operations were about
all there was in the market. The increas-
ing sluggishness of prices deferred even
this class of operators from acting, and
the market sank at one time nearer to
actual stagnation than has been wit
messed at the stock exchange for many
months past. Had 1t not been for the
stirring of interest in Amalgamated Cop
per, the business would have been even
more inconspiouous. The placing of Anal
gamated Copper on an per cent dividend
basis by distribution of $3.50 regular
dividend, so cents extra per share for the
quarter, has been so confidently acclaimed
that action should seem to leave little
occasion for surprise.
The way which the stock jumped on the
announcement, however, caused surprise
on the part of some of the specializing ele-
ment. The resistance encountered by the
stock on every upward movement for
some time past was the basis for some
fears that the dividend was not to be
increased, In spite of the high pressure
of the demand for copper, and the extra
ordinarily profitable prices at which the
metal Is selling. The backward action Of
Amalgamated Copper In face of the profit
able condition of the trade, and the gen.
eral belief that the dividend was to be
increased, has formed the principal
ground for the belief now prevalent in
stock market circles that the leading
financial powers of the country are doing
what they can at present to discourage
active speculation in stocks. while pro-
tecting prices from any serious inroads by
supporting measures in the market.
Speculative comment generally assigns
the election as the probable cause for
the termination of this constraint upon
the stock market. This attitude is believed
to be due largely to the fact that the
stock market is made subject to survey
and comment in political discussions in
a way that might make its activities an
influence on the campaign. There has been
a total subsistence of discussion of a num-
Der of financial projects which were sub
jects of rumors. and which were looked to
as a stimulating influence on the specula-
tion. 1t is supposed that these also may
be held up with the dssire to await the
passing of the political contest. This pros
pect of lack of ammunition may have it's
part in the diseouragement of speculation.
1t Is also out that the course of the money
market is playing its part in restraining
stock market activity Call loans went to
8 per cent early in the day, and held
well above per cent, thus precuding the
idea that yesterdays furry was due only
to temporary stccis market cy.genciss.
The time iilbney market gave a still more
decisive demonstration of the narrowing
of resources. the amount of funds offer
ing on time loans being markedly less.
A downward plunge In foreign exchanges
to near the gold import point was an
incident of this development although
rates for exchange subsequently rallied
strongly The weekly statement of the
Bank of England shows but rneagre
recuperation of the bullion supply, the I'M
provement in condition being principally
due to the scaling down of standing cred
its. But this is having the effect of rails.
ing the open market discounts and tn rs
establishing the banks rate in the open
market Discounts also hardened at Pavi.
today. The effect of the 2ss point rise in