The Birmingham age-herald., 1911-04-16
Empire Building

and the United States has a credit bal snce in London and continental banks Of from s150,O00,000 to $2o0, ,000,000. This bal ance is increasing rather than drawing down, largely on account of the tremen- dous volume of excess exports over im- ports,
 Our internationa trade for the fiscal year ending June next promises to he larger by hundreds of millions of dollars than ever before in any corresponding year. Europe has also been a large buyer of our securities, which helps to increase our foreign credits. The money market conditions broadly favor the stock mar ket People cannot find better employ
 ment for their money than in securities that pay two or three times more than can be obtained on deposits in banks and trust companies. That is in realty the backbone of the stock market situation. An interesting story is just finding its way into circulation explaining why John D. Rockefeller and his followers and friends got out of Steel. According to this bit of gossip, which bears the ear- marks of truth, MT. Rockefeller clashed
 with the Morgan and Gary party nearly two years ago on the policy of maintain
 ing prices. MT Rockefeller. with the strong personal backing of MT. H. H.
 Rogers and William Rockefeller. vigos- |
 iron and steel prices against the manifest downward tendency in general business. The Gary Morgan theory was that the
 wise play would be to maintain prices at all hazards. MT. Rogers and the Messrs. Rockefeller held that such programme would inevitably lead to disaster. They
 pointed out that 1t would multiply ca pacity, increase competition and at the same time drive away and curtail bus mess Incidentally also they opposed the payment of dividends on common stock.
 Being overruled at all points, MT. Rockefeller and his associates determined to get out of the corporation and they have done so. It is said that John D. Rockefeller does not today own single
 share of stock in the United States Steel corporation, although at one time he was | far and away the largest individual own CT of common and preferred. He is said to have realized from his sale of Steel securities nearly $l00000,0O0. which lie either has in bank or has reinvested Tn other things. MT. Andrew Carnegie is
 also known to look with disfavor on the Gary Morgan price theories. Most of his gifts and benefactions during the last year have been in the shape of Steel bonds.
 The Gould family is understood to have disposed of very considerable part of it's holdings in Missouri Pacific since the Kuhn, Loeb banking combination took virtual control of the property into it's own hands Since the annual meeting
 something like a month ago, Missouri Pacific has declined in price S7 share and there has been heavy inside selling all the way down. Within the last ten days one brokerage house has openly
 sold nearly 100000 shares of Missouri Pa cifc, supposedly for Gould account. 
 An enormous amount of wise money" has gone into placer mining since it was discovered that vast areas of rich gravel deposits previously valueess for variety of practical reasons could be worked at
 almost fabulous profit by. gold mining dredGes One of these huge dredgcs with a crew of half dozen men can do more business on a placer deposit than 1000 men by old processes. The success achieved by rich London, Boston, New Yorl, and San Francisco syndicates in the Sacramento valley, California, where they are taking out gold at the rate of nearly SIC, ,OOO GOO a year. has drawn the best min ing talent in the world into that field.
 Experts representing multi-millions are now securing every continent for suitable placer territory. The latest to abandon old line gold mining for the gold min ing dredge is Oscar A. Turner. former Paltimorian famed as the principal own CT of Tonopah mine of Nevada, a prop erty that netted it's stockholders x,OoO,o0O
 in dividends and has a present market value of ssOoo.o0o MT. Turner cleaned up several millions of dollars for his own account before he relnauished con- trol of the mine. He has secured large placer areas in Oregon and expects with in the next few years to quadruple hls fortune.
 He thinks the dredge will double tho gold production of the world. MT. John Hays Hammond Is another enthusiast on the gold mining dredge and is 'plungng' on it with his usual amazing energy an l intensity of purpose.
 The court decision in favor of the rail roads in the Minnesota rate case was hardly noticed as a market factor al- though it should have given the railroa1 managements great satisfaction. It must have shown them that the courts will not permit populist legislatures to enforce unjust and confiscatory laws.
 Although there has been some reaction in prices of railroad and industrial stocks since the high prices reached the first of last month the average is still 5i2 to C points above that prevailing at the end of the old calendar year three and d half months ago.
 The proposed issuance of 10 per cent additional Pennsylvania railroad stock at par increase the capitalization of that company $41, ,000. 600. bringing the total up to s453, 100000. That was another incident which was passed over almost without notice.
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