The Birmingham age-herald., 1906-10-22
The Stock Market.

Henry Clews In his Wall street letter of Saturdays date says:
 The stock market has worn a tired appearance. Occasional spasms of strength were infused into few of the specialtles but these appeared to be of purely tenn porary character, and 1t is quite evident that stocks are being quietly fed out by the large holders on every favorable op- portunity. The most serious impedlments to bullish operations are the political and monetary problems. The latter did show some improvement, but the prohibition of further imports by the advance in in- terest rates abroad will mean the shifting back of many of these loans to this side as they mature. Until the midde of Janu- ary, at least, some very skillful piloting will have to be done by those who con trol the New York money market if we are to avoid further serious stringency. Contraction and not expansion should be the order of the day. Crop demands seem to be at their height, and funds seem dls- posed to return slowly from the interior, especially In view of the general activity in business. This week special demands were made by Canada owing to bank difficulties in that section. The amount required was not large, yet 1t was quite sufficient to perceptbly harden the rates for call money. Time money is some what easier, and this is the best feature in the entire financial situation.
 The political campaign is now at It's height and both sides are awaiting the final outcome. Very important issues of an economic nature are at stake, and the results of the congressional elections will be quite as important and significant as the result of the contest in the state of New York The feeling against great corporations which have abused their privileges Is running high in all parts of the country; and Is almost certain to ex- press itself at the coming elections In support of the socialistic and semi-socla- listic ideas which are spreading so rapid ly. After elections Congress will soon reopen and stock market operations will again be held in suspense until the new trend of politics can be somewhat de- termined The administration seems to be resolutely aggressive In it's contest against corporation misdeeds; policy, needless to say, disliked by the leaders pA Oui 6iCdl pul iHttHStly popular with the people. Until the out look clears in these two fields (the money market and politics) there Is little pros- pect of any genuine improvement in the stock market. At the same time, 1t must not be forgotten that general business continues wonderfully active Orders for iron and stele products arising from the activity in all forms of construction are simply marvellous. The railroads are naturally the largest buyers; and since they are forced into the iron market in order to meet the urgent demands of traffic they simply reflect the nation 8 tremendous activity. In all departments of business a heavy volume of trade is being done.
 Merchants are generally in a cautious mood. owing to the present high ievel of prices, high interest rates and the fear of any sudden check in demand More over, costs of production are exceedingly high, owing to the advances in raw ma terials and labor, and in spite of great ly extended condition of credit, of much imitation in values, and of the reckless speculation in copper properties and real estate, there are no serious signs yet of important business reaction. On tho contrary, the outlook is still hopeful, pro- vided prices are not pushed higher and speculation is kept within reasonable bounds"