The Birmingham age-herald., 1908-01-19
MARKET IS LIABLE ID SPEEDING Movement Too Rapid for the Conservative Element NO NEED FOR MORE WORRY Indications Are That By Middle of Summer New York Banks Will
 Have Millions of Sur
 plus Funds.
NO NEED FOR MORE WORRY
BY w. G. NICHOLAS.

speeding. The advance in the general
 list was prolonged beyond most expec-
 tations and the movement was entirely
 too rapid to suit the conservative ele-
 ment. The rise, nevertheless served the very useful purpose of educating the pub | lie to the idea that the crisis was over
 and that tlmidity might safely give place
 to confidence. In that sense the bull
 movement was more important than the
 mere registration of higher quotations
 on the New York stock exchange. i That the advance in some cases has i gone too far under the circumstances seems to be generally admitted. although
 in no Wall street quarter has there been
 a marked disposition to oppose the rise. 1 Its early inception was dictated in large
 measure by a desire among the banking l and fduciary institutions to make a good
 showing for the end of the year. Pub ! lie support given to this laudable enter prise was better than expected, and the ! first half of January witnessed a very l substantial recovery on top of the inn 1 proyement which dated from the low l panic levels.
 It is now assumed that there will be no 1 further need for worrment on account of money. Lenders, who up to week
 or ten days ago, were able to put out l their funds for six months at per cent,
 are congratulating themselves. The rate l has materially softened and those whose | judgment Is rated best anticipate pe- | riod of cheap money by the middle of
 summer or earlier. Predictions are heard
 that by the end of June the banks s-of
 New York alone will have a surplus re- 1 serve of $90 COG, 600 to $100,000,000.
 Any such reserve would necessarily be at the expense of business but on the other hand it may be accepted as a l truth that no permanent recovery Tn pus- l mess can be expected until there Is an | abundance of loanable capital at the com mand of the banks Abundant money | and cheap money will be the first essen- 1 tial to a return of good times. In US
 early stages the piling up of idle capltai 1 may mean the reverse of good health l and good times. and may spell prostra- | ted industries and the enforced idleness l of hundreds of thousands of wage earn CTS with it's companion evil, reduced buy l ing power on the part of the masses and l general construction of activity in every 1 department of trade and manufacturing 1 Gradually, however, solvent borrowers 1 will appear to absorb available tunds. en- | terprises will be revived and the Wheels l will move again at normal speed.
 The two issues of greatest interest now | and towards which all thought is dli-
 rected may be compressed in the queries: | What will be the duration of the indus | trial and business depression? and i What is to be the outcome and bear ing of the national political campaign? l There is a very radical difference Of l oniuion with regard to the first proposl- | ton. People of good judgment and Of 1 the best information disagree, one set | contending that in most manufacturing nF ttxrif fXr | is now appearing, is merely cleaning l m of old business to be followed by a | prolonged period of idleness or semi-idle- 1 ness.
 1 Another set of oracles have it that | the panic was merely an interruption m the grand swelling movement of national
 prosperity and that the acute causes or the stoppage being removed the grand | broad tide will soon proceed as though | nothing had happened leaving only | scar to mark the few weeks of disas- | ter This variety of opinion affords
 wide range for speculation and makes | the stock market again two-sided- It
 would not be in the least surprising to l see a very decided reaction from the | biqb range of quotations established at 1 the middle of the month. It is not hu- | manly possible for returns on capital to | be up to normal during the next 50 or | 90 days and publication of the financial l reports of railroads and industrial cor porations cannot fail to be impressive on the wrong side of the ledger.
 l Supplemental to these showings will be | the uneasiness created by the near ap- | nroach of the two great national con- 1 ventions. It would be idle and untrue to say that the business community is not | awaiting the convention outcome with | anxiety The prayer goes up that the | country may be given period of quiet | fo 1G r n l that such blessing is immediately in | store
 The nation has been hurling itself ahead l and engaging in hurdle jumping and bare- 1 back riding until it yearns for repose | with an anxiety that is unconcealed and l unreserved. Whether 1t Is to be given tbis chance for recuperation from politi- l cal strenuosity is probably today the | most potent factor of doubt and uncer- | taintv in the whole financial and business l situation Possibly Wall street feels this 1 more keenly than the balance of the | country, but there are signs or broadly | felt sentiment to the same effect, septi-
 ment local to no particular part Of the | country.
 l From Washington comes the glad tid- | mgs that Congress will contribute noth- | inr for the promotion or prolongation Of | husiness unrest. From the very highest | Washington sources the adVlce IS recelVeu 1 that Congress will content itself with the 1 massage of a monetary relief bill framed l along the lines of the so-called Aldrich | hill and that it will do little else besides the passage of the appropriation Dill. The
 money nroiect scheduled for approval will | call for about $1, ,O00 000,000. If everything 1 sho,,ld be appropriated that was asked 1 for the amount will be $1,500,000,0O0 The
 watch dogs of the appropriation com 1 mittees of the Senate and House will l keen the totals down to the lowest pos | sible figure and by common consent I,OOO,- l GOO 900 is named as the minimum On this | programme of reasonable repression ot 1 extravagance Speaker Cannon and his col | leagues stand immovably committed. | Both branches of Congress will kill as 1 much time as possible on non-essentials
 in the matter of legislation and the con- sideration of bills of the most innocuous sort. All of this conduces to the best 1 business results and meets with the en- tire approval of Wall street-a term 1 which in this connection has a vastly broader meaning than the geographical l description of the small area on Man l haitian Island south of Fulton street. If | A kind providence should will reasonable | relief from heart-breaking presidential campaign the day of restored confidence | and of good times will unquestionably | be hastened. It is for this reason that | Wall street is watching eagerly every de- | velopment having a bearing on the na- | tional political campaign.
 It may be that by the time Congress | gets ready to pass an Aldrich bill the T 5o,,,or5 for uyi11 bavo qDhsided Tn