The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-11-07
BULLS AND BEARS
BOTH RECOVERING
Money Relief Has DispeIled
All 1inidity
NEW PIC IRON RECORDS
New York Central Improving in Wall
Street Esteena--South Work
Ing Into Stronger
Money Position.
eY w. G. NICHOLAS.

RY w. G. NICHOLAS.
New York. November 6.-The bears who
want to get out of the market and the
sold-out bulls who want to get in are
more or less reluctantly recovering from
the depression of spirits caused by the
prospects of scarce and dear money The
one thing that occasloned greatest alarm
last week among these two elements,
mainly the trouble that was to ensue
on account of financing the 50, 900, coo
or s30,0o0,000 worth of American securities
being turned back upon Neg York by
foreigners, hardly caused q ripple of ex-
element in the money market. No trou-
BILE whatever was encountered by those
who had to raise the money. They got
all they wanted and there was plenty left
after they got through. There was SO
much, in fact, that rates softened imme-
diately and word passed along the line
that there was no real need for further
alarm. This is In exact accordance with
the view which appeared in my last
weeks dispatch in the shape of state
ment from a leading international bank
err He had no hesitation in taking a
position contrary TO the great prepsp.
derance of opinion and declared that
there was no dang& of serious none
tary stringency and that he was satisfied
there would be plenty of money to go
round at cost which would not be
oppressive. This Is turning out to be
exactly the case, and the turn for the
better is taking place ahead of schedule
time.
The market effect of the money relief
which is being experienced has been the
feeling of timidity and uncertainty. The
market has acted stubbornly all week,
and has shown marked power of resist
ance against the feeble attacks of the
professional and bear contingent. Where
stocks declined the loss was Insignificant.
There was unmistakable strength of I'M
dertone and seemingly moderate though
steady accumulation in many quarters.
The volume of business indicates the pres
ence of a good sized public-a conserva-
lively bullish public and one more than
ever convinced that 1t Is a bad time
to sell. From that attitude it is only
short step to a resumption Of buying.
The accumulation for investment account
seemed to be most strongly seen In the
standard railroads and in the seasoned
industrials. There was halt In the
buying of the big steels' and increased
activity among the minor industrials.
notably American Car and Foundry,
Pressed Steel Car and other equipment
issues. Colorado Fuel and Iron took an
other jump. Just why nobody appeared to
understand, unless 1t was to make good
the innumerable tips that have been in
circulation regarding that stock. Amalga-
mated Copper took actual market leader
ship at times, and the air was drugged
with stories about the merger of low
cost producing properties and the Anal
gamated. On merit Amalgamated Copper
is apparently 80 points too high, but
mighty is the power of manipulation. 1t
cannot be said with positiveness that the
market is being worked to enable the in
siders to unload at high prices, but IL
such were the programme the machinery
would probably be operated about as we
see day by day on the stock exchange.
Amalgamated at best Is blind pool run
for stock market purposes. 1t has never
been anything else. 1t has been a mighty
gooe COW to milk for the insiders, but at
the present disproportionately high range
of prices its usefulness in that role seems
to be about over. Hence the desirablity
of unloading on the public and letting the
price down where 1t belongs. There Is
unquestionably a largely increasing de-
mand for copper metal, but producing
capacity keeps ahead of consumption and
the new mines are almost entirely among
the low cost producers. If Amalgamated
is worth 80, then Steel common would be
cheap at 200 based on earnings and pros
poets.
The October production of Steel corpora
ton was at the rate of nearly 100000
tons year. The rate for November will
be even greater. The output Of pig iron
for the last quarter of 1909 for tho whole
country will be at the rate OF about
81 900. 900 tons a year. or fully 100000 tons
per year above the high record Of 1907.
when the production reached its total of
25. 7S5, 600 tons. This increase Of 5000, 900
tons Is figured by railroad traffic experts
to mean S0000,000 additional tonnage for
the railroads. At the low rate of 81 per
ton freight this would mean $40. 900 in
new income for 1910 over the best figures
heretofore. An increase OF that amount
would be equivalent to the freight row
enue on about 15o.0OO.o0O bushels of wheat
from the country granary to tidewater.
New York Central Is perceptibly Inn
proving in wall street esteem 1t is
vantage than In many years. Every
wheel is rolling and every dollar that it
Is possible to get out of the property Is
being secured. 1t could do 10 per cent
more business IL 1t had the equipment.
The deficiency in this respect is being
remedied as fast as possible by the addi-
ton of new cars which have been or
dered by the thousand. For the first time
in FIVE years or more William X Van
derbilt is taking a live, aggressive inter-
est in the property. He Is personally "on
the Job and II he has patience and per-
sistence of purpose enough to stay here
the system ought to make very impor-
tant Roadway within the next year and
pull up substantially In its race with the
Pennsylvania. The. danger Is that Mr..
Vanderbilt will get tired quickly and try
once again the unsatisfactory plan of
running the road from Paris and the
cabin of his yacht, as 1t cruises in for
eign waters. 1t was that sort of thing
which was largely responsible for the
roads slow progress In comparison with
that of it's big rival on the south. Mr..
Vanderbilt had such scare. however,
that 1t may be he will attend to business
more strictly In the future 1T was
Mr. Harrif1ans intention to back
Mr. Vanderbilt UP or the boards and
take control OF New York Central That
he would have done this had he lived is
altogether probable. He had the Wander
bilt regime going. If the experience re-
suits in d regeneration or the Vanderbilt
the stockholders In the
will have much to be thankful
for.
In money way the wesi Il taking