The Birmingham age-herald., 1908-12-13
NICHOLAS WALL STREET LETTER al Money May Go to . .
 Per Cenr REACTION IS EXPECTED It is Felt That Ways and Means Committee Made Mistake in
 Starting Something" At
 This Early Date.
REACTION IS EXPECTED
BY w. G. NICHOLAS.

favorable conditions having been dis counted. the bulls are somewhat put to 1t for excuse 1oI further advance. The chief bull factors at the present time is cheap money, which is still in abundant supply ana ailable for the uses of fav- ored market leaders, although the bank Ing interests are endeavoring to impress people with the idea that some time dur ing the next 30 days rates may advance sharply. Some of the spokesmen for the banks are talking and per cent for call money between now and January ]. This prospect is not in the least dismay- ing to the tulls, however. They are not unfamiliar with 25 per cent call money at the end of the year, and as high as 1eO per cent has been paid within the memory of the very youngest members of the stock exchange
 The situation seems to be shaping for a reaction If considerable importance. The imminence of tariff revision has beyond doubt produced chill in general busi- ness, although for the moment the sea sonable holiday activity in mercantile branches gives an appearance of whole
 
 mum prosperity. In the background, how ever, 1t is an undeniable fact that the situation is slackening and that there is d growing disposition to await the action or Congress On the tariff schedules before becoming committed to plans for the future. The purpose of Congress to make only a perfunctory revision and have through with it as quickly as possible, is likely to be changed under the pressure
 
 revision.
 It is now felt that the House ways and means committee committed mistake in starting in on the hearings at this early date, when there was no particular oc- cesion for it to mix in. The immediate and direct result of this gratultous and alleged uncalled for iniative has been to start a tariff agitation months before the meeting of the Congress which will change the existing law. This is now vot- ed to have been a grave error, and to have been the occasion of a disturbance in conditions which might have been avoided. However, the cork has been pulled out of the bottle, and there will be no stopping the disturbance until the signature of the President Is on a new lill. It IS growing consciousness of this fact which Is likely to impart to the stock market spirit of dullness and re-
 
 It is the chief reason why railroads are not taking advantage of the cheap money situation to float new bond issues. Nearly everything they have to buy in the way of materials will be affected in price by t5rff revision and they look upon 1t as bad financeering to fill their treasuries with idle funds when they are reasonably sure to get what money they may need later on, they have drawn back into their .l.. fna bot haxy mt mo to lose by holding off, and as conse- Guenee they are contributing very little to the booking of orders for next years business. This makes the outlook for most of the iron and steel companies and the equipment concerns very unfiattering.
 Thus far however, the reflection of actual conditions is not shown on the tape So far there has been little dis position to get rid of stocks although for the moment new buying Is not in or der. The market seems to be working stale. Without important public backing or active open manipulation prices are not In way to advance much further. The public has symptoms of cold feet. What the manipulators will do cannot-be foretold. The mind reading equipment of the farecasters gets out of working order when confronted with this question.
 Few people not fin the know" who can appreciate the depth and intensity of the aftermath commotion incident to the Carnegie utterance on tariff. Rep resentativeS of every industrial in the country is stirred up and particularly those engaged in the steel manufactures. These people are in New York in great numbers and wherever they get together there is a buzzng like a nest of angry hornets They do not underestimate the opinion shaping importance of MT. Car negie's statements and to his open stand on the question they attribute the changed popular sentiment for actual revision downward. They are cursing him with an earnestness that is genuine beyond doubt.
 He has disarranged all their plans and made it necessary for them to go before Congress and the country and make fight for their lives Back of it all is a feeling that the big Steel corporation should be held responsible for the newly arisen unpleasant condition. A serious cut in the duties on iron and steel and their products might mean ruin to scores of independent concerns, while the giant corporation would in the end be a gainer by reason of it's enormous resources and its advantages in the way of cheap raw material and transportation. Leading of fcals of the Steel corporation are doing their best to counteract this impression and it Is known on the inside that MT. Corey will go before the ways and means committee cooked and primed with facts, figures and arguments to controvert ev- cry position taken by his old chief, MT. Carnegie.
 In the opinion of the iron and steel specialists the promised dispute between the president of the Steel trust on the Washington stage will be sensational in the extreme. The corporation manage ment feel that is has to make good with the independents, or run the risk of trade fight which might bring disaster on the whole country and put an end to been the endeavor of the corporation to The situation from market standpoint becomes acute and interesting and may have a decided effect on prices of the entire industrial stock list.
 The writer must be excused for giving so much space to matters connected with the tariff, but as a matter of fact this is likely to be governing influence in the market for many months and discussion Of salient phases is altogether timely. Tariff revision is the one thing which will hold up and delay restoration of activity for several months.
 Several times during tie last 30 years the public has stopped buying iron and steel and many other manufactured prod ucts on account of tariff agitation. On some of these occasions 1t looked as though there never would be any more buying and periods of intense stagnation have resulted. These seasons have been marked by severe breaks in the prices of ,,,oct securities Veterap and axperi.