The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-02-28

points.
There is still some confusion of mind
as to what caused the slump and what
forces were operating behind the scenes
to cause the shakeout AS matter of
fact, several things contributed to the
stock market episode. Some people dig
Nifty it by the name of panic. There was
nothing of a panic about it. 1t has even
been compared with the panics of 1908
and 1907 There are few points of SINH
larity; almost none in fact The down.
turn in the market since the December
bulge is in reality little more than
very sharp reaction. General conditions
have undergone no important changes
during the last 60 days. excepting that
the let-down in the iron and steel trade
came to such an acute phase that it
could no longer be concealed from the
public and had to come out. The curtail-
ment in industrial activities was and is
due almost wholly to tariff revision dis
quiet and on that feature of the situa-
ton every thinking man was fully adj
vised and cognizant.
There was simply halt in the progress
toward complete business recovery-a halt
which everybody had looked for and
was in a measure prepared. The stock
market was exceptionally slow in grasp
ing the significance of a tariff revision.
A new generation of traders and brokers
had come on the scene since the last re-
vision IA years ago and they did not fully
comprehend the meaning Of slash in
export duties. They are beginning to
dirnly realize what 1t may mean. Most
of the younger generation looked upon
revision as a mere political move without
very important business bearing.
They have had so much political agita-
ton that mere discussion of the tariff
hardly attracted attention. Merchants,
manufacturers. importers and exporters
did not view the situation from any such
angle. They appreciated at its true mean
ing the halt in activity everywhere man
ifested. Not so in Wall street The
enlightening revelation came all at once
and in the nature of surprise.
The big fellows in the stock market
took advantage Of the eliminating steps
of the big bull market last winter and
quietly slid out of their speculative hold
ings, realizing thereby untold millions.
They stepped aside and continued in the
role of spectators until the slump during
the last days of last week and the first
days of this week.
At the lower range of quotations many
of them reappeared as buyers, although
not aggressively So They came to the
support of their specialties In many in
stances and every important brokerage
and commission house on the stock ex-
change Is full of orders from rich clients
who buy on a scale down Il there should
be any further recession. This kind of
buying Is dead sure TO bring any kind
of a market slump TO a close and to
lay a foundation deep and strong for
| great upturn. This foundation is now in
! process of creation and it Is as nearly
certain as anything marketwise can be
| that the accumulation of stocks on a scale
| down will before a great while show
! profits. The big people and the great
market leaders have made no conceal
ment of the fact that they were indif-
ferent to the course of the market after
| they let go of their gambling lines.
They have not been particularly OPP
| posed to the public hold in prices at a
! very moderate reaction from the high
| levels, but they have not been surprised
at the sharp break and are rather pleased
than otherwise at being thus enabled to
replace their holdings at many points
| below the figure at which they sold GO
or 20 days ago. OF the future they have
no doubt whatever, although they still
look for an intermediate period of slack
| times.
| The cut in the price OF steel and iron
products is unquestionably stimulating
! buying orders at a tremendous rate. The
| larger manufacturing companies led by
United States Steel, are in the field look
ing for business in way that clearly
| foreshadows an early resumption of ac
| tivity on very extensive scale. The
break in prices is bringing this about from
! two to four months earlier than most peo-
pie had been looking for. Indeed 1t seems
| hat fba of, ftxr
is preparing to adjust itself to reduced
tariff rates even before the meeting of
Congress, which is to act thereon.
1t is of common knowledge that every
body of consequence in most of the lead
ing branches of industry have been given
a reasonably close foreknowledge of the
frame-up of the bill which is being pre-
pared by the House ways and means
committee and put in a position to fix
their affairs to suit. There is no be-
trayal Of confidence in this distribution of
advance information from Washington.