The Birmingham age-herald., 1908-12-06
NICHOLAS WALL
 STREET LETTER
Edge Seems to Be Off Specu-
 latiOn for lime Being
STOCKS MILDLY BEARlSH
Shipments of Gold When There Is No Profit in Transaction Is Pug zIing Wall street-Fi-
 nanclng of Frisco.
By w. G. NICHOLAS.

ny w. 1s INlOTIOEHSs
 New York, December 5.-The edge seems to be off speculation for the time being.
 The sentiment of the stock exchange is mildly bearish. Nobody looks for a seri- ous slump in prices, but there is a feeling that the situation is in for reaction. Consequently there is a marked diminu- tion in the volume of buying for an inn mediate rise. A steady line of invest ment buying is going on, but those who are taking on securities are in no hurry about 1t. They do not rush in and insist upon having their orders filled on the bulges. They know full well that the market will be here tomorrow and the next day and the day after that. They also realize that at this stage of the game it might pay to go slow,
 There are many reasons why the wis dom of the street subscribes to the theory of a reactionary period in the stock market. In the first place. there has been a tremendous advance in prices-enough to discount pretty nearly every favorable condition realized or anticipated. This great rise is due very largely to manipu- lation. A manipulation which might apt ly be called righteous manipulation, inasmuch as it has been for the benefit of the country at large and has been very leading factor in restoring general confidence. It is one case where the Sa- tanic machinery of Wall street has been employed for the universal uplift.
 It has been, broadly speaking, a grand gospel movement for the installation of pie. Without 1t the return of good times would have been much slower Hence it is that the country at this time owes to Wall street a debt of gratitude which it may be slow to realize but which is none the less provable An offsetting fact may be that Wall street is responsible more than any other element for bringing on the panic of last year, but Wall street was not alone in feeling a sense of panic due to political agitation and overexpan- sion.
 Tn the second place, there is growing realization of the significance in a busi- ness way of tariff revision Changing the schedules Is always disturbing influence and although in the present case the evil effects of a readjustment of duties Is minimized by a knowledge that it is in friendly hands; yet the fact itself looms in the foreground. As a market factor tariff revision in It's milder form is fig ured as operating against prices. The best that protected interests can hope for 1t the worst of it. From no view point can the process itself be construed favor ably to the manufacturing interests. the new conditions imposed by revi- sion then there will be time enough to talk of the increased benefits accruing from an enlarged business.
 This Is the ideal condition dreamed of by free traders, against which visions there stands out the fact that the country has progressed wonderfully under protec- tion and that any change from that pol icy involves doubt, uncertainty and ex- perimentation The stock exchange, in comon with business interests generally, Is not keyed up to the academic view of the situation and confines It's observations largely to the immediate future. This future at the present writing is filled with the picture of six months more of tariff agitation, with every chance that 1t will become more acute as the day for the passage of the new tariff law approaches The tape Is beginning to reflect its feel ing in very moderate way.
 The industrial division of the stock market continues to show hesitancy and growing inacton. Down to this timo there has not been important recession in prices, but there Is continual grip of long stock and an absence of vigorous support in any quarter. Thus far as noted in the beginning of this dispatch there are no evidences of wholesale or wide spread liquidation In the industrals. That may or may not come later. Sentiment on the exchange Is visible forecast of further decline in quotations.
 In the railroad list there Is little of this feeling manifest, although the boom seems to be out of things. There are exceptions to this rule. Rock Island, for instance, gave an illustration of independent strength which cut quite a figure. This was due to inside knowledge that the Rock Island company was about to be re- lieved of the drag of financing the Frisco system, which has been handicap of the big holding company almost from the date of annexation five years ago. Con firmation of this foreknowledge was given
  house of Speyer Bros. had underwritten the 900 issue of Frisco bonds. the proceeds of which are to be used in wip- ing out formidable floating debt and providing capital for certain necessary betterments.
 As a sequel to this transaction there is a tacit pledge that in the near future div idends will be resumed on Rock Island preferred. The Speyer deal will restore to the Rock Island treasury not less than s20, 900, GOO in bonds and stocks which have been behind Frisco loans and will re- imburse the holding company for large cash advances. Rock Island is emerging with credit from a protracted period of hard trial and tribulation.
 Just why this country should be ship ping gold when there is no profit in the transaction Is a present puzzle to Wall street Europe does not need the gold and we have lots of 1t to spare. but as be- fore stated, there is no money in ship ping it across the water. The United States already has an enormous credit reserve in Europe, and the steadily in creasing balance of trade in our favor Is adding to this reserve. Yet here we are forcing the yellow metal into the gorged stomach of the old world It does not speak well for the home situation when we get rid of our idle money for the mere sake of shifting the responsi- biiity of storing it. Things are not as bright as they ought to be if domestic employment for the funds cannot be found with call money around ? per cent and time money ranging from per cent 10 4 per cent.