The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-21

tive powers of unparalleled extent, but 1t
is by no means clear sailing. Hence 1t Is
not likely that the recent syndicate ac-
quirement of great blocks of stocks Is Oh
permanent character.
Money market conditions remain salts
factory so far as Wall street borrowing Is
concerned Call loans are abnormally
cheap and time, loans can be effected at
bargain rates. From the treasury de-
partment at Washington comes express
sion of opinion that the west will, to a
large extent, be able itself to take care
Of the crop moving financial SITUATION
Recent apprehensions of over-extension
of loans by western banks are, so Wash
ington says, much exaggerated This. or
course, Is cheerful and encouraging news
which will exercise due influence. Many
prominent western bankers share THIS
view, among whom may be mentioned D.
G. Rounds, president of the Citizens Ma
tional bank of Des Moines. President b.
f. Edwards of the National Bank OF
Commerce of st. Louis, President s. X.
Burrows of the Central National Bank of
Topeka, and the president of the First
National Bank of Jefferson City. Chica-
| CO bankers also talk hopefully OF course,
much depends on this money situation.
In Industrial circles more hopeful views
are expressed than for some time past
The Steel Corporation officials are cheer
| fully optimistic. OF course this corpora
ton is so fortified financially and Is 80
| ably managed that 1t would take a long
depression to bring about anything like
threat to It's dividends, and as an as
sured per cent dividend payer Steel
common is certainly one Of the most at
tractive investment opportunities present
ed. This is not to say that Steel COM
mon cannot go down with the rest Of
the market should another wave of liqui-
dalton set In. 1t Is but few short
weeks ago that it came perilously near to
| 60. 1t could do 1t again under similar
circumstances; but for those who want
to invest and hold, Steel common any
where below 80 Is an attractive PROPOSE
| ton. The announced policy of the cor
poration to maintain the 5 per cent basis,
but to distribute surplus earnings In the
shape of extra dividends should encourage
all holders of Steel common. should In
duce them to disregard sympathetic
downward fluctuations.
| Holders of Amalgamated Copper are in
| a different situation There Is no man
agement there akin to Steel Corporation
management. There Is, on the contrary,
secrecy and mystery. There is, of course.
| no pretense that Amalgamated should
sell where 1t does on Its pitiful dividend
basis. It's present range of quotations
reflects nothing more than gambling
hopes OF course, gambling hopes some
times find fruition-more often than not.
A curious feature of the situation Is cor
responding weakness in American Smelt-
| ing which causes much struggling of the
| shoulders in Wall street. Other Indus
trials are not giving any particularly
good account of themselves. The equip
ment companies keep sluggish because
of the fear that necessary curtatlment OF
railroad orders will cause their business
| to shrink in the near future.
| General business holds up much better
than was expected. Reliable mercantile
agency reports disclose wholesale trade
| in pretty near normal condition for this
| time of year, remarkably so, indeed con-
| sidering the freakish weather conditions
which the country has suffered for so
many months. Evidently the consumptive
power of the American people has suf-
fered no serious impairment up to date.
OF course much of this is due to the con-
tinued prosperity of the agricultural COM
munity.
| And this agricultural community bids
fair to continue its prosperity. There has
been serious crop damage. notably of
wheat; there may be more before corn
and cotton are harvested; but on the
whole-it seems reasonably certain that the
| products of the farms will be great In
volume and will command prices that
mean additional wealth to the American
farmer. If this prove to be true, the as-
ricultural situation will sharply offset
| trade uncertainties.
Another element which Wall street be-
gins to turn attention to is the political
situation. The party in power is con-
| xrt1Iao xytfh a CT and aaCtfnUa
strife. 1t does not lseem possible that
machine domination can be perpetuated
| The congressional elections of 1910 are
| likely to reopen the vexed tariff issue-s
prospect never pleasing to American bus
mess men. A republican House divided
against itself would be in much the same
| position as the British House Of Com
mons, where a minority practically die
tates legislation. This chance may come
| to the democrats even should they not
succeed In electing a majority of their
own. Moreover, there seems to be no
escape from further paternal legislation
affecting the business world, all of which
| is not relished by Wall street. This may
be a far cry just now, but it will be
heard more loudly and loudly as Noyem-
Der approaches.
1t seems inopportune to call attention
to special stocks just now The market,
however fantastic Its movements may
be, moves up and down practically as a
single entity. Individual properties do
not receive individual consideration. Did
they do so. attention might be called to
the remarkable improvement going on in
Erie. Erie earnings are much larger than
for some years past and the physical con-
dtion of the road shows vast improve
ment. Erie first preferred has attracted
considerable investment buying Of late.
The Hawley stocks continue to be an
element of unrest, though trading in all
of them, except Chesapeake and Ohio
has come pretty nearly to standstill.
Chesapeake and Ohio is strongly held by
recent buyers, though Mr.. Hawley dis
plays no unusual personal interest in this
property. But when the market turns
weak Chesapeake and Ohio slides down
smoothly and swiftly. The question is
pertinent: How long can it's present div
idend be maintained?
| On the whole, sensible advice from re-
liable sources is to the effect that 1t is
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