The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-14

They have coined a new name for these
situation saving specialists. They call
them financial 'beach combers." These
so-called beach combers have put them
selves in the way to realize immense
profits on the huge piles of wreckage
they have recovered from the ships that
have gone to pieces on the rocks at their
doors Opinion is mixed as to whether
these banking syndicates will engineer
a big bull movement in the stock market
during the next six weeks with the cheap
money which could be used to finance
such a campaign OF whether they Will
favor the gradual working UP of prices
until the autumn demand for funds puts
ND the interest rates. AS the situation
now stands there are all kinds of money
to be had out of reach of all except most
favored borrowers. To illustrate this
point 1t may be mentioned that even
the Consolidated Gas company of New
York has been obliged to pay per cent
for a renewal of a s50o0,000 loan for
year The Consolidated Gas company has
gilt edge credit and its directors are
Identified with the richest banking insti-
tutions in the city.
II Consolidated Gas has to pay per
cent for money it is safe to say that
there Is little to be had on cheaper terms.
The banks are very strong at this writ
ing, their surplus reserve over and above
at any time since the 1908 cleanup, after
the panic of the year before. AT the
same time the leading bankers anticipate
A demand for every dollar they have or
are likely to have and they are not
going to weaken their position by tying
UP a dollar unnecessarily. They intend
to go into the fall strong, but in the
meantime they would like to find employ
nent for the huge sums at command.
They have baited their hooks with III
per cent call rate, which may go to 1 per
cent and they expect the big spectators
to bite.
1t is going to be an easy matter for
the wholesalers to borrow money at the
banks during the remainder of August
and possibly through the month of Sep
TENDER The wholesalers understand the
game thoroughly. They feel that they
are taking small risk in buying dividend
paying stocks at present low prices and
making the scalp of 4 to per cent. be-
sides the strong prospect of big profits
accruing from the advance in the secu-
rifles they buy. They have made this
kind of a turn several times during the
last few years and are not likely to let
the opportunity escape now 1t is upon
this fact and upon this situation that the
rank and file of bull spectators place
their hope and reliance for an advance In
quotations considerably above the cur
rent range
This does not blind them to the posi-
lility of an immediate reaction, however,
and the weight of sentiment fayors the
theory that prices will be allowed to set
tie back several points in order that
fresh start may be taken and in order
also that the bear contingent may once
more sell itself into hole. The bull
leaders expect to take a. good deal of
money from the bears by these tactics,
which they intend to repeat as often as
the market gets into that condition for
them to make the play.
The programme as it seems to be out
lined is for the managers of the bull
campaign to churn the market up and
down in wide sweeps. all the time lifting
each successive base line higher than the
one preceding. In other words they are
trying to make it appear that the money
will be found on the bull side Of the
market and at the same time not dis
courage the bears from renewing attacks
after each rally.
The market. however, shows decided
mower of independent resistance against
reaction. 1t does not yield easily to the
pressure of short selling or of long stocks.
Genuine public and miscellaneous de-
maud is in evidence, and expectation of
serious baskset may be disappointed.
The important news feature of the
week was the government crop report.
That report, while not all that might
have been hoped for, was on the whole
satisfactory. 1t forecasts an agricultural
production Of $1,000, 100000 to $500, oOo, 900.
At anything like prevailing prices for
farm commodities this total may until
mately reach the rosy estimate made by
Mr.. James J. Hill, who declared 60 days
60, nf or
States would produce $500 100000 worth of
stuff this year.
The government crop report gave the
public official assurance that the country
is bedrocked firmly on a continuance OF
prosperity for the great farming cominu-
mtg. 1t was something that was badly
Welded and has gone a long way to re-