The Birmingham age-herald., 1911-12-17
STEEL AND COPPER IN CENTER OF STAGE Prices BOomed With Fire works During Week GROWTH IN ORDERS Industrial Output Is Enormous But Prices Continue Low-The Ten
 dency, However, Is To-
 ward Advances
GROWTH IN ORDERS
BY ". G. NICHOLAS

New York, December 16.- Especial J. boom in the steel and copper indus tries was introduced into the stock mar ket with every possible theatrical ef- feet--red hre brass bands, and every method of publicity and sensation. It was a good offset to the scare that had been previously worked for all it was worth and for time it has served to detract attention from the skull and crossbones performance which is going on endlessly in Washington.
 The immediate effect and value of orders for few hundred thousand tons of steel rails and other products of the mills counts for more in the bank account than the terrors of something that may happen some time in the in- definite future. The imagination may be terrorized by visions of evil, but there is wholesomeness about actual new orders on the books which more than counteracts the dim distant evil. Wall street seized upon the opportunity and played up the fireworks for all that could be made out of the occasion. The really big people were not much dis- turbed, nor were they carried off thelr feet by the demonstration, but the spectators and fraction chasers on the exchange became immensely enthusi- astic. Good times were restored over night, and employment was to be given hundreds of thousands of idle men right off the bat. The favorites on the eeX- change were advanced sharply and the entire list trailed along with more or less earnestness. The big people who are seasoned to that sort of thing quiet : ly let the boys have some of their goods on the advance, a fact which tended
 
 ends with a considerable part of the improvement held, and some outside support worked up for stocks at the increased valuation The underlying feeling is, however, that the little boom has been worked for about all it is worth and that a reaction is in or der.
 A greater degree of confidence is felt in the reports of improved condi- tions in the steel industry than in the copper expansion. The premises are not the same. It is universally under stood that the basis of the revived in. quiry for copper and the higher prices that have made for the metal are the direct results of artificial curtailment of production, and that every fraction of cent rise in the raw material will stimulate the output; for that reason the theory is commonly held that the situation may be short lived. Gentlemen's agree ments to curtail mining operations are not strong enough to withstand the temptation of Is 3h c to 14c for the metal It is true that the development of the electric industry makes continuously for broader permanent demand. There has been a remarkable increase in production for the last few years, and there appears to be no definite limit for the uses to which copper can be applied. The great mining companies feel con- fdent that they have the situation we'll ill, hand now, and can protect the mar ket against any future overplus in supplies. They feel that there is reas- onable chance for establishing the price of the metal around 14c and holding it there indefinitely That would mean money for the miners and would entail no hardship upon manufacturers and consumers.
 At the rate orders are coming in for steel mill products, there would be a production of 30,000,000 tons year. provided the speed is kept up. That would be about 4,000,000 tons above the record. The fear is, however, that the present pace cannot be maintained although prices are certainly tempting to buyers and users of material and equipment. Railroads and other large users of steel products evidently feel that they will be able to obtain sup plies at lower prices, and that they will be wise to make contracts around these figures. It is admitted that the mills are making very narrow profits at quotations they are now taking orders It is not surprising, therefore, that al most every day brings it's notice of a marking up in the price of the goods There is nothing in the market situa- tion which enchians he.attention of the street more than the current devel- opments in the steel and cooper trades.
 The public at large is absorbing standard dividend paying stocks stead fly but not noisily At the prices now ruling, a great many stocks with long records as dividend payers can be bought on an income basis of to s per cent This is a very good yield on the investment and beats bonds and savings banks ? to points, As the stock market is always here investors who put their surplus into active stock S that pay their way, take small risks. This Is not the kind of business which makes loud impress, but where 1t is continually going on, the effect is felt It makes a backbone for the market and goes long way towards sustain ing prices and imparting genuine sta bility to values.
 At the current range of prices. the Hidrket IS aDOut midway between the nigh points attained in January and July and the low levels touched on the slump which took place in September last Taking into consideration the general business depression that ha x lasted in varying degrees throughout the year. 1t can be easily reasoned ont that values are about where they should De. Union Pacific at 175 is 22 points above the low of the year and IF points below high. United States Steel com. mon at 6S is 16 points up from the bottom and l 1 points below high Read ing IS IS points above bottom quota tons of the year and 10 points under the highest reached. Eastern trunl iihe stocks have swung within a range or lo 10 l5 points, and are now occupy- ing station about half way b~tween tne TWO extremes. It is in this class ol stocks that the small investor has been busiest. He has taken an enor- nous aggregate out of the floating sup ply and tucked away in the strong box. as evidenced by the large increase in the number of stock kholders of record in such systems as Pennsylvania, Balti more and Ohio. Louisville and Nashville Atchison, .e1u Chesapeake and Ohio
 St le one of the roads that mas E9istently under the ham, mer. k4he present writing it Is only Aabove the low figure reachq4 le decline. St. Paul is not shl p' well in point of earn ings, ef ss or net. Experts claim that ic qpming within ? or a points kg dividends and that if cOndu0I riPjd lipes if would