The Birmingham age-herald., 1910-12-12
The Wall Street situation

| The Wall street
 Henry Clews, in his Saturday review, says in part:
 "A somewhat better feeling has lately developed on the stock exchange. Last month prices were pushed upward at too rapid a pace; liquidation ensued, and the decline wfiich followed appears to be bringing in fresh buying of a better character
 "other factors have also contributed to improvement. The Presidents message was well received, inasmuch as 1t ad- vised the cessation of attacks upon cap ital and advocated strengthening of con- | idence in business This moderation of government activities which undoubtedly did much to make capital timid and aggravate unfavorable economic condi- tons was favorably accepted in f1nan- cial circles. Since the Presidents mes sage marked out no new programme of importance it can now be taken for granted that there will be little if any important legislation in 1911, beyond pro- y.ding for appropriations and regular rou- tine affairs.
 "An important stimulant in the mar ket was the continued ease of money. This must be attributed to slackness of trade, a decline in values and liquida- ton of speculative risks which unques- tionably released large sums of money. For some time past bankers in all parts Of the country have been insisting upon conservatism, the result being contrac- ton and retrenchment in nearly every di- affo orto nd wise; and as a result the banking sit uation, though not yet entirely satisfac- tory, is greatly improved, and there Is no longer any danger of the crisis which , 1t was seriously feared would materialze about this time. Instead of distrust and pending disaster we find loans contract ing and interest rates comparatively low not only at home but also abroad. where reactionary forces are beginning to mani- | fest themselves. The strength of the Bank of England at this time is particu- arly assuring. as it renders gold ex- ports from this side later on more diff cult and will materially facilitate the raising of much needed capital for the completion of railroad enterprises. Our borrowings abroad just now are already quite liberal.
 Our railroads are greatly in need of | funds to carry out projected improve ments, made imperative by growing traf- I fife requirements. Success in the plac- | ing of these issues will undoubtedly stim- ulate business activity. Orders for rails and equipment which have been held back for months will be placed, perhaps gradually, but with sufficient freedom to impart fresh life to the iron trade, which is now running only little over half its full capacity. Other lines of constructive work will also fenefit; so that while many business conditions must still be classed | as unsatisfactory the outlook Is for bet terment, chiefly because of easier money It Is thus that liquidation and lower prices pave the way for fresh forward movement.
 "As to the future of the market, the outlook is promising for rather more ac- tiYity and a fair advance, although in View of lessened satisfactory conditions Of business no very pronounced upward movement is yet in sight. Readjustment
 s not yet complete. and imitation has not been entirely eliminated, but there IS nothing seriously unsound in the sit uation; and if commodities can only be brought to a more reasonable basis there Is nothing to prevent a restoration of
 business activity"