The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-17
EFFECTIVE WORK
FOR REINSURANCE
Is Being Done to Bolster Up
Wall Street Securities
PRICES ARE GAINING
Easy Foreign Money Market Has Good
Effect on American Cash Move
ment-Copper Continues
Sore Spot In Street
BY w. G. NICHOLAS

slocK market and to restore to the pub
lie mind degree of confidence very
much needed. Leading fnanciers and
captains of industry have Joined in the
campaign and are lending it their active
help. They are apparently working
with an entire agreement of purpose and
are coming out In interviews of most op-
timistic tone. They say that in their
| opinion the depression In business and in
the stock markets have gone far enough
and that the time has arrived for
change of front
| There is also substantial agreement
upon the general proposition that present
prices represent the discounting of about
all unfavorable developments and condi-
| lions likely to appear. This is certainly
encouraging, coming from group of
men more than half of whom have been
either openly or secretly against the
market for a good while. The team
work. is undoubtedly having beneficial
effect on sentiment and while open and
aggressive buying is not yet so much in
evidence as might be desired by over
anxious spectators there has occurred
an almost entire stoppage of liquidation.
The bears have discovered this latter
feature and they are beginning to draw
in their horns Being skeptical as to the
sincerity of these interviews and con-
STRUNG the campaign of reinsurance as
move upon the part of insiders to talk
the market up so that they might unload
some more stocks the bears proceeded to
pound the market on every sign of reac-
ton or weakness.
They succeeded several times in break
ing prices a point or two, and on the re-
port that Germany had made an Of
| fensive diplomatic play against the
United States touching Nicaraguan af-
fairs they broke two or three of the fav-
orites 3la points or more In one day.
Then again on the announcement that
| the interstate commerce commission had
decided to suspend the freight rate adj
vances four months they raided prices
again. In both cases the disconcerting
fact was brought to light that the break
In prices was entirely carsed by short
sales, almost no long stock having been
dislodged.
These two raids resulted in very ma
terial increase in the outstanding short
interest and the bears were compelled to
bid against themselves to get back a.
part of their lines. Consequently the
market sharply and easily recovered
Hoses and with each of these develop
ments the situation took on more
cheerful color. Actual buying for long
account set In to reinforce the Job lot
and small investment accumulation
which had been going on for two or three
weeks
There was nothing really new In what
| o. hor
surance propaganda, but the force of the
action lies In. the fact that the people
who did the talking were willing to say
anything. Their loquaciousness must be
taken as evidence of desire to see mat
tiers mend Thus far nothing has been
heard from J. P. Morgan, William Rookie
feller John D. Rockefeller and several
others representing enormous interests
These may come along later and will be
quite as welcome as though they were at
the head of the list of cheerful takers.
The flood of hopeful utterances is being
contributed to quite extensively by men
who are more than suspected of having
been actively on the bear side of specula-
ton Off and on since last fall With few
exceptions they have been either in ex-
pressed or silent sympathy with the
crouch because of the governmental de-
termination to take further decided steps
for the supervision and restriction of
corporations. A sentiment which runs
through good deal of the uplift liter
ature is that a good deal of the grouch
was due to the inability of the financial
leaders to understand the depth and
force of the popular feeling behind the
action of the administration and Con-
gress to restrict the freedom of big In
siders to exploit the corporation over
which they had command and run as in
dividurl assets.
Reluctant admission is now being made
in these very quarters that the restrictive
and supervisory movement has come to
stay and that still more advanced ground
is likely to be taken very soon in the
enactment and enforcement of laws for
federal control of new capitalization.
bonds and stocks. 1t comes hard for the
banking combinations in Wall street to
have to yield to any authority in these
matters, they having heretofore enjoyed
a freedom which has amounted to license
to levy oppressive tribute on all i'm
portant enterprises which need new cap-
ital.
They naturally rebel against the taking
away of their toll-gate privileges These
eleventh-hour interviews would seem to
show recognition on their part of the
inevitable and of a willingness to desist
n
lie and the politicians any more object
lessons at enormous sacrifice of values.
as they have been doing for the last year.
The improved tone of the stock market
has been attended by gradual gain In
prices The average of quotations Is al
ready several points above that reached
at the extreme of depression. Opinion
in the street is still very much two
sided as to the immediate future, but
the bull side is gaining recruits day by
day, and there is a growing feeling that
we may witness rising markets through
out the remainder of July and possibly
well into September when the demands
for money for crop moving purposes may
serve as a temporary check on specula-
tion Since the July distributions of div
idends and interest, call money has been
getting easier and funds for stock mar
ket purposes are once more easy OF ac-
cess.
Another cause which Is contributing to
the feeling of speculative confidence is
the case of the foreign money markets.
London call money Is now down to per
cent and London time money is also easy
and in over-supply This situation makes
1T altogether probable that the inflow of
gold will speedily assume large volume.
THE disparity in interest rates between
America and the old world money CEN
tiers increases the likelihood of extensive
imports of the yellow metal. Another
thing chat tends to better feeling In the
home money markets il the discovery
that western and southwestern banks
are in a sounder condition than they were