The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-04-17

dends in the stock market which they
are unable to do In actual mining opera
lions.
By the way, the most effective combi-
nation for the maintenance OF prices
which the world has seen for good
while Is found In the iron and steel trade,
and even that has not always worked
out Only last yeer the combination went
to pieces and it became necessary for the
Steel corporation to smash prices TO
smithereens In order to demonstrate that
It would not go on indefinitely holding
the umbrella over Independents. The
Steel corporation management indignant
ly denied that the design of his whole
sale raid on prices was for disciplinary
effect, but whether 1t was or not, the
independents came back on the reserva-
ton under solemn promise to sin nc
more Wickersham appears never to
have heard of this combination, Witch is
still in force, although possible intangi-
BILE to the grip of the law. Possibly the
law department at Washington holds
that such a combination in restraint OF
trade is not unlawful If it Is subject to
failures such as occurred last year as
mentioned To be conspiracy the con-
spirators must always win.
Just how the banking interests check
the momentum of the gold movement has
not yet been explained. 1t was only
week ago that all the talk In influential
financial quarters was to the effect that
prices of commodities or stocks and bonds
would have to come down to a level
which would induce foreign buying In
large volume, or else gold by the whole
sale would have to be shipped TO meet
maturing obligations abroad.
The same kind of talk is still INDUCED
In but only in regard to commodities
Stocks are several points higher than
they were week ago and the bond
market is decidedly more active. At the
same time those same banking interests
seem quite willing to see the particular
kind of merchandise they deal In &c
higher and to have the public partici-
pate in the speculative movement,
This Is probably because the bankers
and underwriting syndlcates which have
been hung up with hundreds CT millions
of dollars of new bond issues see the
light breaking ahead and hope to be able
to distribute the goods without being
forced to let prices off and start the
boom from lower levels. Manifestly II
would not do to allow the gold to go Out
under such improvd conditions at home
and 1t is more than likely that there has
been a good deal of borrowing OF money
In the European capitals for American
account during the last few days, Any
way the big end Of the gold which was
going to be shipped out of the country
will be kept here to help finance stoch
speculation That is a better use thar
sending 1t away.
Steel common has taken the place OF
Union Pacific as the great market leader
1t is the red-hot popular favorite these
days, and transactions in that single
stock are rs to 80 per cent of the tota
daily transactions. Rock Island is also
taking conspicuous position. 1t is still
several laps behind Reading and Unlor
Pacific, but seems to be gaining groune
every DAY in the esteem of the traders
who like lively action in something they
can get in and out of without fear OF the
leo breaking. The immense activity II
steel is commonly attributed to the mi
tiatiye of a very powerful and industriou:
pool generated not thousand feet from
the office of J. p. Morgan & Co. The
Morgan influence in the Steel manage
ment is stronger now than 1t ever was
before.
The prevailing belief is that at the
directors meeting next week the dfvi
dend on common will be raised to 3 pei
cent There are some who think pei
cent will be decided on. The corporation
has entered upon the second quarter Of
what promises to be far and away the
biggest year In It's history. 1t Is making
at the rate of IS to 20 per cent on the
common and can well afford to pay
, per cent or better. .