The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-09-27
NICHOLAS WALL
STREET LETTER
Stock Assumes a More Peace
ful Mood
FEAR OF THE ELECTION
Wall Street Is Not Certain That Taft
Will Be Elected-PeopIe Are
Slow to Put Wagers
on Result,
FEAR OF THE ELECTION
BY w, G. NICHOLAS.

BY w. G. NICHOLAS.
New York, September 26-The stock
market seems to be emerging from its
CONFUSION and entering upon a rather
more peaceful period. The election scare
spent its force, in part at least 1t made
a lively time while it lasted, and there is
no certainty that we will not see one or
| more repetitions of the excitement be-
| fore November. 1t Is difficult to correct
| ~ appraise the scare and determine how
| much of it was genuine and how much
attributable to official agencies. There
| is shrewd suspicion that veteran mar
| ket manipulators took advantage of an
| opportunity to throw a scare into the
market and engineer a sharp break in
| prices without much real reason there.
| for, except the desire to make money
| Now that the keen edge of the furry is
| over things are moving along about as
| before. There is a bare possibility that
| the market many not be taken hold of
| with the same old vigor by the same old
| Hartman Standard Oil crowd until after
| election, but at the same time it is pretty
| clear that the big market generals have
| not released their hold or lost control of
| the situation.
| Undoubtedly there was a heavy distri.
| button of clique and syndicate holdings at
| tie HIGHEST range Oh prices
! and there is no positive proof that the
| distributors have replaced their lines to
| any extent on the break that occurred.
| Indications are that they came to the
| support of prices, but to what extent no
| body is able to know except those strict
| ly on the inside. The break was helped
| along by extensive sales for short ac-
| count The nimble-footed professionals
who made this play on the short side
took profits, as a rule and the situa-
tion stands today it will appear that in
spite of the terrific raiding, the short in.
terest is far from being unweldy or dan
| geroug On the contrary, it's partial
! elimination leaves the market technically
weak, and strong and persistent buying
on large scale would seem to be nee
essary to material Improvement in val
ues.
The definition is confined to prices and
quotations. AS to the question of values,
| 1t would seem that the advance which is
still held amply discounts about all the
good things that can be said in favor
of better times and recovery from acute
business depression. That there is some
betterment in the general merchandising
and in some lines of industry is no doubt
true, but the attitude of bankers and
conservative business men generally is
such as to discredit ultra optimism. AS
a matter of fact, the owners and lenders
preaching a dry panic. Actual money is
as hard to get, except for short time ac-
count and on liquid collateral of highest
class, as it was during the period of ex-
IRENE fright and uncertainty following
the panic. The banks do not lend their
money out beyond the range of imme-
date vision, and then only to the favored
few The big market manlpulators have
the first call available funds
They have used this advantage for fla
grant market manipulation and the rig
gng of prices. Even in that respect the
banks are beginning to show increasing
conservatism. Within the past week, or
ten days they have adopted a policy of
demanding very much wider margin
of security on loans and in their applica-
ton of this rule they are not playing
faVorites as much as might be expected.
They have seen prices marked up 20 to
5O points without excuse for half that
much advance, and they are taking Off
cial notice of the fact in the manner set
forth. They are serving notice on their
favored customers and friends that pru-
denee dictates curtailment of specu-
lative enthusiasm on the bull side.
Wall street is not so cock sure of Mr.
Taft's election it was, although still
believing in the success of the republican
national ticket There is a growing dis
position to admit that Mr.. Bryan may
have a show, however. This is very
marked concession the part of Wall
street, for it is VIGOROUSLY reluctant 10
confess that it is ever wrong in its con-
clusions, however immaturely they may
be formed. When it comes to sizing up
national political situation, Wall street
is in the infant class
1t judges the whole country by senti-
ment generated and held within five min
utes of the stock exchange and stub
bornly refuses to admit that the rest of
the country can by any stretch of pos
siblity entertain Views to the contrary.
1t is fact that in the estimation of a
great majority of the population of the
financial district of New York the North
river marks the western boundary of the
United states. Some of them dimly I'M
derstand that lot of people live west of
the Alleghenies, but they are for the
most part 'hoosers,' suckers" "badg-
ers wolverines and other uncouth
specimens of the animal kingdom wear
ing skins for clothing and running about
barefoot.
Certain officials associated with the
inner management of the big Steel Cor
poration are showing signs of distress
although as yet they maintain a very
brave front, SO far as the world at large
can see They are beginning to feel that
they may have made a mistake in
''plunging' too heavily on the election of
Mr. Taft and a republican house of rep
resentatives. They went on record in the
very early stages of the campaign in
extravagant praise of the Roosevelt adj
| ministration and policies and confident
predictions Of republican triumph
Judge Gary went to Europe feeling
placidly assured of the accuracy of this
| view, and while he was gone a riotousy
successful bull campaign was conducted