The Birmingham age-herald., 1911-11-19
PUBLIC IS AT LAST ! GETTING VERY WISE Wall Streets Hatband Is Much Smaller POLITICS IS A FACTOR Roosevelt's Attack on Tafts Policy Has Created Genuine Sensation
 on the Street-Is Roose-
 welt a Candidate?
POLITICS IS A FACTOR
By ". G. NICHOLAS


 New York November 1S.-(Speciai)-I The pace was too fast The market en- tered upon a reactionary stage, as almost 1evervbody expected. boom of 10 to 15 points on merely happy change in sen timent was about all that could be looked for ar houed for under the circumstances. The public came in on the earlier stages of the advance, but turned cold as the boom approached a climax
 More correctly speaking, the public did the bulk of it's buying on the decline which carried Steel down to 50 and the other speculative leaders to the low quo tations of the year. Oh, that wise old publici It has ceased being the 'easy' mark of previous years. It has become educated to avoid the snares and pit falls that for so long enabled the bank CTS and brokers and gamblers of Wall street to maintain yachts and indulge in the luxury of million dollar cottages at fashionable seaside and mountain re- sorts. It is buying a few yachts tseH and adding to its own bank account. Any how. the public realized before Wall street did that the decline had been al- lowed to go too far, and that when tried and seasoned railroad and industrial stocks could be bought on an income pay ing basis of 6 to s per cent 1t was time to invest.
 It didn't seem to make much difference to the miscellaneous investors whether the banking combinations and trust mag mates enjoyed the new experience Of be- ing summarily compelled to obey the law and conduct corporate affairs as directed in the statutes and in compliance with recognized business ethics and common honesty. It was understood in a whole sale and wholesome way that the country would be benefited instead of injured by the reconstruction and readjustment which is in progress, and that stocks would not be likely to suffer more than temporarily while the process Is going on. That was why there was neavy Invest ment by the rank and file of large and small capitalists outside of the immed- ate influence of the New York Stock exchange.
 The so called Large interests" of Wall street were naturally interested in check ing the great decline in the stock mar ket and in developing upward ten dency in prices. Their concern was large ly due to the fact that their banks and trust companies were loaded down with collaterals whose value was being threat ened by the growth of pessimism and con- tinuous market raids by bearshly trained professional spectators. great many of the Wall street magnates would per- sonally like to see the decline go fur ther and thereby give the. politicians an object lesson of ruin which might be wrought by political agitation, but the risk was too great. Their own pockets were being affected by the impairment of properties upon whose stocks they had loaned their own funds and those of their depositors To have permitted demoraliza- tion would have been a case of cutting off their noses to have revenge on their faces. The cost would have been too great for the satisfaction that could be gained by encouraging disaster.
 On the great recovery several special ties made new high records for the year, but the average on the list as an en- tirety did not come within to 10 points of the high record made in July last The present average is only little above midway between the high quotations of July and the low prices that were made about three weeks ago. The current range is not unreasonable although at the moment, the general situation is not such as to induce new buying. on a large scale. Neither is 1t such as to cause widespread shakeout or liquidation of stocks bought on the decline or during the initial big days of the recovery. The business outlook is not getting any worse at any spot, while in several quar- ters improvement is noticed. The steel Industry, for instance, Is looking bet t turing centers sending in reports of an increased activity well along into next syear-when things are quite as likely to improve as to retrograde.
 It is quite likely that in great ma jority of cases new business has been obtained at concessions in prices. but this is one of the penalties of sharp compe- :tition, such as is being witnessed mot only in the steel industry but in ipractically every other branch and di- vision of trade. The main thing in times of depression is to get enough to do to keep the great army of employees busy on the best terms possible ,and without act ual loss in manufacture or production. It is compensating factor that at the present time the cost of manufacture in the steel and other industrials is lower than eyer before. This Is true also in its duplication to railroads. The cost of ltransportation has undergone consider able reduction in spite of the added tax due to the increased wages of employees. Had it not been for this increase rail roads would be making so much money That the whole country would be agitat- ling for. reduction in freight rates and passenger service. This Is one of the things the railroad companies may find comfort in thinking about
 Mir Roosevelts attack on the Taft ad- ministration created an immense sensa- tion in Wall street, and it's first reception iwas a smart rally in the stock market fThe open rupture between MT. Roose- welt and the President injects into nation al politics an element of uncertainty, the gravity of which is not disguised That 1t will make 1t harder for the President to put through his programme during the remainder of his present term is ,adrnit- ted That 1t may have a decisive effect on presidential nomination is also con- ceded. In Its present mood Wall street halls with satisfaction any development which Is likely to unhorse MT. Taft Wall street has not got far enough, however, to make up its mind where change could be made that would improve it's condition or shape events to it's satisfaction It is enough for the moment to get rid of the man who is hurting 1t and interfering with its plans.
 A few weeks ago rumor. apparently ridiculous on its face, was afloat to the effect that Wall street interests had off, fered the presidential nomination to MT. roosevelt. His assault upon the admins tration might be said to give a semblance of possibility to the almost unbelievable kI.rA Ia l,n