The Birmingham age-herald., 1908-08-23
NICHOLAS WALL
 STREET LETTER Banks Are Strongly Behind the
 Stock Speculation ARE DEEPLY INVOLVED Lawson of Boston Is Much In Evil dence-WaII Street Is Not So
 Sure of Tafts Election
 as Awhile Ago.
BY w. G. NICHOLAS.

I
 New York, August 22.-(Special.)-The banks are under the stock market to l greater extent than at any time in years
 except possibly during the extreme or l the panic last fall. They are leholhS more money on stocks now than would
 have bought the stuff outright eight months ago. The latest report Of na-
 tional banks to the comptroller or the
 currency shows an increase in the loans of New York banks of $154,Oo0,O0O, while
 banks outside of New York show de-
 crease of $63, 100000 in that item.
 1 It is altogether probable that if there ] could be a separation of classes of loans it would be seen that commercial bor-
 rowings in this city decreased fully as much as on the outside. If this be true, then the increase in loans in New York 1 city is wholly for account of Wall street and that instead of being $l54,OOO,- i 900 greater than at the date of the last preceding report it would be nearer $2O0,- i COG, ,O00
 State banks and trust companies are as heavily loaned in Wall street as the national banks. It Is therefore quite safe
 to say that at least s4Oo,O0O.00o more is rented out by banks and trust compa
 nies on stock exchange collateral than was the case three months ago, which is about the date the great bull manip- ulation got fairly under way.
 The bull movement in stocks was in- augurated and carried on during the early stages on the theory that times were speedily going to improve. Ex- pectations in this respect have been only partially realized, but the leaders of the manipulation found it easy to put prices up and with the aid of cheap money placed at their command by the banks and trust companies they extended their operations and put into effect a broad, general play.
 At the present time there is an im- mense speculative long interest in the stock market and considerable shifting about of ownership thereof. The great leaders of the manipulation have been In and out of the market two or three times, capturing huge profits only to yield again to temptation and reinvest In the securities they had sold. Mean- time, professional public, made up largely of rich men, have become inter- ested in the market, seeing how easy it
 y, and they are now probably carrying the largest end of the deal.
 Although realizing that the tremendous advance which has already taken place In the stock market must have discount ed any improvement likely to be seen in general business for at least another six months ahead, banks and bankers are showing very slight alarm over a , situation which might appeal to some as becoming hazardous.
 The counsel and advice of tmid or con servative men is receiving scant atten- ton. They have been wrong for three or four months and therefore they are looked upon as false prophets and apos- ties Of evil. They have no present stand ing in the community. The dance goes merrily on. To shift the simlle the skaters are proceeding with their carni- val unmindful of the fact that the ice Is getting thin and that they may be in danger of breaking through,
 The banks and trust companies being behind the gamble with the public money 1t appears that the public is really in the market, but unknowingly, and not par ticipating in the profits.
 Lawson of Boston has been much in ey- 1dence for a week or more. The general verdict hereabouts is that under cover Of wild and woolly demonstration in a few of the popular specialties In the gen eral market he has been devoting his main efforts to unloading a few carloads Of Bay State gas upon a conhding clien- tele. The wise ones figure out that If he breaks even in his Wall street play ne Will still come out a big winner through his distribution of his Boston gas stock. Opinion is still very much mixed now as always as to whether Lawson is a lunatic or wonderfully clever man who is working his egotism for all it is worth for the coinage there or in dollars. Whatever may be the fact about the mental status of this unusual person, 1t is clear that he has capitalized the first person singular for many mil non dollars and sold the full issue to the public at premium.
 There is much testimony which is con- sidered good in Wall street going to show that Mir Hartman has sold out Union Pacific holding in New York Central and relhVested the money in other quarters presumably in Erie, Wheeling and Lake
 Erie and the Pittsburg Terminal securi- ties For several days New York Gen. tral certificates of stock in strange and unknown names kept pouring into the commission houses through banking houses identified with Hartman affairs. At the date of the last annual report Uhlon Pacific held in its treasury a little over l4O,000 shares of New York Central stock worth at par $l42S5OOO, but which cost S19, ,634,0 GOO, an average of about 136 central sold up to 110 last week, from which point there was decline of nearly Sl0 share. If MT. Hartman got as much as 1O5 for the lot the transaction i still shows loss of more than $4 000. GOO on the deal.
 A lttie matter of that kind is hardly worth mention in MT. Harriman's lit- erature pertaining to Union Pacific high financing. Erie and Wabash has no fur ther use for the Vanderbilt system. He found his position with New York Gen. | tral not entirely to his liking He was entirely unable to exercise any sort of control over that company or It's policies and he is never quite himself unIess he IS the whole thing. He was, therefore, quite Wiling to sacrifice s4OoO,OOO of the 1 money of Union Pacific's stool,boIdors to eXtricate himself from a saa+ of ,,,rast