The Birmingham age-herald., 1907-04-14
STREET SHUDDEaS ID THINK OF MARCH. Big Operators in Market Are
 Still BeariSh TALK OF STEEL DIVIDEND keene Heads New Syndicate to Put the eraphotype, a New Type
 setting Machine on
 the Market.
BY w. G. NICHOLAS.

the most experienced observers or the market, says that never before in all his years in the street has he seen such d mysterious panic as that of last month. But, despite the more cheerful tone of the street, big operators haven't the cour- age to go ahead pulling stocks. They want to know what the future has in store. Many of the bearish factors that brought about the severe decline in prices are as potent as ever. Money is cheap CT. this is the most encouraging thing.
 But weak railroads, like the Erie Wabash and Southern, are having trou- ble in raising money for pressing needs It is held that the Erie has no busi- ness to spend $2.5o0.00O in dividends on its preferred stock, when it is forced to spend Il per cent for little spending money to tide 1t over lean spots The action of the Erie stocks in the market would seem to indicate that a good many people have this opinion, and that they base their opinion on some knowl- edge of things on the inside. Erie first preferred Is selling on 71a per cent basis anu Erie second is selling on 10 per cent basis. When railroad securities sell on a 10 per cent basis 1t is usually time to inquire what is going to happen. The dividends on Erie second don't require very much money, but they require more than the Erie can afford to spend. The Wabash, too, has been able to raise $6, OU,O00 on its notes. These are secured by collateral. The Erie notes are just
 promises to pay"
 The men who reversed their position on the market were men of large vested interests who sold stocks all last winter partly for fear of the effects of the administration attitude on the Hartman roads, but more on account of the warn ings received from Europe that the money markets of the world were in such deli cate position that liquidation in securi- ties was imperative. The Morgans and their following got out of the market last winter. The Rock Island crowd sold stocks. The Hill following, after sec ing a good share of their accumulated profits on the bull side disappear, were forced to sell stocks. Leading financiers in the street in more or less close touch with the administration sold stocks. And from Europe came steady stream of realization and liquidation. The common belief in the street Is that the Standard oil crowd did not sell any big line of stocks because 1t was afraid to try its market MT. Hartman, Mir Rockefeller, MT. Rogers, MT. Prick and their fol- lowing held on to big speculative lines
 
 tide of liquidation and get rid of their stocks at high prices. They apparently missed their market to sell stocks on The sudden increase in the Hartman dvi- dends, that they hoped would give them a market to realize on, failed of it's purpose. Looking at the market broadly, it seems that nearly all the big fellows except the Standard Oil crowd sold stocks and left the boys at 26 Broadway in the rat4.er unusual position. of being hung up with their own securities. But ever since the panic of the Ides of March the big fellows outside of 26 Broadway have been taxing back their stocks It is believed that men like Morgan and Moore and Ryan took back their stocks when the li6nt waisted bears were doing the loud est shouting. The short interest In the market has been very much reduced and 1t seems that the greater part of the snort interest now outstanding is of the ligntwaisted variety The plungers and pikers who were all wild bulls at the six prices of last winter became just as bearish last month, and the lower prices declined the more enthusiastically bear ish they became.
 The bears of this variety looked upon the recovery of the past three weeks simply as an opportunity to put out more
 
 whole understructure of the market is rotten, and they are going to be on deck when it crashes They are talking about receiverships for some of the weak CT roads, and wholesale cutting down of dividends on the stronger roads. After the terrif. decline of February and March of course it is no time to get wildly bullisn simply because the market has recovered some share of it's losses, but ordinarily common sense should show that after the very severe declines it is better to buy good stocks on the breaks than to sell them on the bulges. The minimum of risk is on the long side of the market so long as standard railway stocks are selling in the neighborhood of a per cent basis and money con tinues to be easy.
 The bond market has been looking up. It remains to be seen whether this Is only temporary. After a bear market the de- mand for high grade bonds is usually the forerunner of an advance in stocks. It is too soon, however, to expect re- versal of sentiment. After the bear mar ket of 1903. in which the low prices were made in September, it was eight months before the bond houses began to get over the blues. Things began to look up in May with the successful sale of a block of New York City bonds, and there was a steady improvement in the bond mar ket during the next three months. The bull market in stocks began in July. The advance got well under way immediately after the Presidential nominations. Wall street felt that whoever was elected the country was assured or fairly conser- vative administration.
 Last winter when prices were very high Wall street was talking of a grad ual preparation for the campaign of l90S The idea was that there will be the usual letup in business toward the end of this year or early in 1908 and that there would be gradual liquidation in stocks. But, unexpectedly to the rank and file of Wall street. the liquidation started months ahead of time, and in- stead of being gradual was violent It is the unexpected that always happens in Wall street. Looking forward to 1908 and it is not such a long way off-it is plain to see that the big men will not be anxious to carry a big load of stocks through the campaign at high prices. Next years presidential campaign as it looks now, is likely to develop into one of the hottest political fights in the history of the country. Considering the present state of the public mind almost anything can happen next year. There is the possibility that the election may so result as to thoroughly undermine public confidence for the time being in railroad and industrial securities.
 Any considerable advance in prices this +l,a