The Birmingham age-herald., 1906-01-07
Pools Seem to Have the Money
 and the Stocks
STEADY RISE OF COPPERS
Lawse7's Predictions Are Discredited, But He Still Has Wall Street Guessing About the Result
 of His Operations.
BY w. c. NICHOLAS.

New York January 6.-Prudent and wary followers of stock market specula- ton could wish. perhaps that expecta- tions of big boom in prices during Jan uary were a little less general The splendid enthusiasm with which the bull forces carried their market over the end of the year, making stocks like Steel preferred and Union Pacific sell al new high record prices. and others like Steel common and Amalgamated Copper at the highest prices of three years, served greatly to strengthen belief in a broad continuation of the campaign for higher prices. The signs that commonly pre- cede q wild speculation, indeed are very much in evidence. and it would be sur prising if the bull market should col lapse just when conditions seem to favor an extensive distribution of stocks at higher prices but if all the hackneyed proverbs on Wall street the one most worth repeating is that it is always the unexpected that happens in the stock market.
 The chief flaw in the outlook. in fact. is the danger that lies in overconhdence. The demonstration in the last week of the old year already alluded 10 was made with call money lending at 40 to 125 per cent. These would normally be prohibl- tive rates, but owing to the overwhelm- ing confidence of the large holders of stocks security values actually advanced. and the big people, so-called, were ob- viously more inclined to increase their holdings than to liquidate Only two or three times before in the history of Wall xa..I@- to the limitations of the money market as since the beginning of last autumn. and the result was that the end of the year found the banking position of New York weaker than it had been at any corresponding period in the last decade.
 There has yet been no extensive dis trbution of stocks to the public The average commission house is not heavily loaded up with stocks. All are in a po- sition to take on stocks for their clients as soon as money market conditions ease a little; pools, cliques and individual op- orators of great wealth have all been going one way on the market. buying and buying stocks on steadily rising range of prices, confident of getting a market later on which to distribute their stocks. The public until recently con- tented itself with looking on, but the spectacle of advancing prices sooner or later becomes irresistible and In Decem- Der, with hardly enough money to go around in Wall street. the public began to manifest interest. From the manner in which the big bull forces disregarded high money rates In the last fortnight of the year, especially in the last week 1t may be known that they have a per feet grip of the situation. Their plans are well laid. An English observer was led last week to declare while watching prices advance buoyantly with call money lending at 20 and 100 per cent:
 'I begin to understand the situation perfectly. Your pools have got all the money and all the stocks. That is why you have a scarcity of both commodi- ties
 This reflection cuts very near to the truth although, of course. 1t is meant to be taken fin the general sense. If nothing unexpected happens we shall un- doubtedly see a much wilder speculation in the next two or three months. assum- ing. of course. that the speculative atti- tude of the public is rightly understood assuming. that is. that public, tardiy appreeiative of the wonderful prosperity, Is willing now to come in and buy stocks. The ultimate object of bull campaign in the stock market is to distribute stocks to the public. otherwise the out siders. at the highest possible range Of prices.