The Birmingham age-herald., 1909-02-14

which will not be frightened out of its holdings by the stereotyped "shake-out" which on so many previous occasions proved efficacious in the separation of the sucker from his money These days, strongly fortified in the belief that the country is on the eve of tremendous new development averages down whenever the market breaks, buying additional stocks on the breaks instead of being frightened out of what has already been accumu- lated This makes the recognized meth ods of stock manipulation extremely haz- ardous.
 For weeks past the bears have made continuous small losses. They have at tackled the market nsistently and now and then have succeeded in breaking spe- cial stocks several points. only to find that when they tried to cover they had to buy on a scale up proceeding in which there was no money for the operator. Un- occasionally Wall street now has to deal with an educated public. The success that attended purchases during almost the whole of last year has taught the rank and file of spectators and invest ors, the financial value of the old maxim to buy on reactions instead of bulges.
 For the next two three months the dominating issue In the stock market is likely to be the tariff. Individual stocks will be worked up and down on news from Washington as to what Congress will do in the various schedules. This tariff influence, however, may be power less to check an upward sweep in prices due to a growing sentiment that when ever the tariff thing is settled business will revive.
 The big men of the street and those x.v1,a 1oxr fv. speculation and promotion gain their big profits by discounting the future and buy ing when stocks were low, knowing that within discernible distance the mighty currents would produce results with mathematical certainty. Reports from every department of industry are to the definite effect that mills and factories are banking with certainty on a tremen- dous revival in business before the end of the year. This is particularly noticea- ble in the iron and steel trade.
 Orders for millions of tons of rails, structural material and other products are being held in abeyance pending the ac- tion of Congress on tariff Buyers are holding off until they know just what is going to be done or until they can get line which will enable them to sec themselves out with safety. This condi- ton is almost inevitable to the unsettled situation. A trade publication of recent date gave several columns to an enumer- ation of items of construction work which were held up until Congress acts. What is true In iron and steel applies also to other branches of industry
 The province of speculation is to antici- pate results and for that reason the wise ones in Wall street are hardening to the view that the next great market boom will not wait for Congress to act, but will assume that settlement, whatever it may be, will liberate the forces of manu- facture and start the wheels going in every direction, Certainly the course of prices since the first of the year is con firmatory of this theory
 The money market has been acting to the advantage of bond makers and bond sellers The treasury withdrawal of matter of s35 GOO from government Repositories hardened the interest rates somewhat, but otherwise produced slight effect. It did not frighten corporations into unnecessary competition for funds
 These people feel that they will not be the losers by undue haste in grabbing at available cash. With revived activity in business, investors will become more courageous, they figure, and bonds that might find slow sale now will go into the strong boxes with increasing volume. It Is observed, however, that these same investors are already active. Transac- tions In bonds thus far this year are about double what they were for the corre- spending period of 1908, and prices have recently shown an advancing trend It is taken for granted by the manufacturers of bonds and the salesmen that reouire ments In that direction will be pretty well disposed of before urgent competition sets In from industrial and commercial ouar- ters.
 The report of the Copper Producers as- sociation, which was one of the statisti- ! cal outputs of the week, came rather as surprise. It showed copper stocks on hand to be about 14i0000OO pounds whereas common report made the amount anywhere from 250 000. 900 to 30o.000 900 pounds. For line of production that should have accurate statistics, the con- per market is very poorly supplied The l data which has been doled out to the public has always been received with more or less doubt. Its origin lays, the information open to queA n as to its en- tire accuracy. The rule of copper statjs- tics is that there is always something up the sleeve-something hidden and known only to insiders-either concealed stocks or concealed scarcities It will be a blessing if this Copper Producers as- ! sociation Is able to furnish the trade and
 the public figures on copper supplies and 1 copper production that can be depended [ on.
 The report of the profits of the Peoples
 Gas company of Chicago is a blow to the 1 pretensions of the big gas monopoly of l New York The New York corpora , ton has been violently insisting that it could not make gas at
 profit at so cents per 1000 feet. The rec
 ord of the Chicago institution is that 1t is
 able to earn about Sh per cent on s5 cent i gas without half the income advantages that obtain here. The New York com
 pany has in addition to ownership of the gas making monopoly. the entire owner snip or electric lighting. The two com bined give reasonable assurance of a con tinued dividend of per cent. or better. although spokesmen for the concern make earnest denial of this