The Birmingham age-herald., 1912-10-27
HOUSE CLEANING
 IN STOCK MARKET General Resumption of Divi- dends Order of the Day REVISION OF TARIFF
As Street Becomes More Closely Acquainted With Wilson There Is MoYe Confidence That He
 Will Be Safe"
By ". c. NICHOLAS

By W. c. NICHOLAS
 New York, October 26.-tSpecial )-There l has been wholesale and thorough mouse cleaning 'oe the stock market during the last couple of weeks. The acute phase of the process was reached this week in break of to points in many of the leading speculative issues and some what smaller recession in the more steady going properties. The market was found to be heavily over- bought-that is. every body felt bullish and bought until their appetites were satisfied and then they all stopped about the same time. With the exhaustion of the buying power prices stopped going up and reactionary ten dency developed. Then came along the Balkan outbreak attended by demorali-
 zation in the Continental markets which found reflection in London and in New
 York. It was some time before the New
 York market felt the full effects of the
 European disturbance, although the ca-
 bles announced with positiveness that anywhere between 300.oo0 and 500,Oo0 shares of American securities had been dumped overboard These stories produced some
 effect, but the accuracy of the estimates
 was doubted and the bulls made light of the stories that came in of European
 liquidation. The certificates themselves came in this week in quantities, every
 steamer bringing bales of the documents. ! It is estimated that during the last ten
 days about too,ooO shares have arrived Tn | New York having a par value of siooOo,-
 coo. It happens. however. that the bulk
 of European investments in American
 securities are in the high priced things
 like Union Pacific, Reading, New York 1 Central, Pennsylvania. tho Hill stocks, Southern Pacific Atchson, Baltimore and l Ohio and Steel, with good amount of Erie, Southern railway and lesser
 amount of the chief Southwestern rai-
 roads. It will be seen that the foreign
 interest in Americans" is diversified and
 when the stuff came out considerable
 list was directly affected
 Now, the New York stock market can
 usually take care of load of that kind
 without much trouble, but on this occasion,
 the pressure came when the local situa-
 ton was none too strong-when it was
 really overloaded and the result was a l decided break in prices. The big interests
 attempted to give the necessary support l to prices, but when 1t was found that the pressure was greater than had been es 1 timated, support was withdrawn from several influential quarters. Not only. 1 that. but there was heavy selling of large l blocks. Leading operators and banking 1 f,fa toOl "a m n nj
 really up to them to make a market for
 all tho dlsgruntled and tied out holders l who might want to take profits cut losses
 short or hold off until purchases could be
 made to better advantage. It may be
 stated as d positive fact that the domi-
 hating influences of Wall street are al
 most unanimously bullish on the general ] situation and that they look for very
 much higher prices later on The demancs | upon the financial resources of the banks and capitalists are unusually heavy and l there are other interests to take care of | interests that have precedence over Wall
 street. Provision must be made for the moving of the crops and for the increased l mercantile and manufacturing depart
 ments. The general classification is | Legitimate business' in contra distinction | to Wall street and the stock exchange, 1 although the two are very intimately l intervoven. The securities market is as | legitimate as dry goods. cotton grain, | but people do not look at it that way. An "overbought' market is just as dan gerous as an "oversold' market.4 When spectators attempt to put prices up py the sheer force of buying before the time is right for grand upward movement
 murderous reactions are invited. These slumps are generally mere stock market incidents, provided underlying conditions are sound as they are at this juncture Nobody was really hurt on the break in
 prices which has been witnessed during l the last fortnight, and which seemed to have climaxed this week There has been | not the slightest interruption to the move
 ment of tonnage on the railroads, or to | any branch of the manufacturing or som- mercial industries. On the contrary con l tinual expansion is the rule, excepting in | railroads which have already reached the l full limit of capacity The United States has never been in full enjoyment of such universal activity as at present. Com | panies and institutions which have been l struggling along for two or three years
 under heaviest pressure are making money hand over fist. A general resump- tion of dividends is the order of the oay and where there has been dividend dis tribution on restricted scale the outioo< iOi HcTedsSS all dlOTS lle me outlook has rarely been brighter or exist
 ing conditions more satisfactory to capital and to labor.
 To many the chief disturbing feature s
 the accepted certainty of tariff revision. Wall street and the business interests generally are quietly accepting that de-
 velopment as one of the things from which there is no escape The election Of MT. Wilson. the continuance of a democratic majority in the House of Rep resentatives and strong possibility of derl- ocratic control of the Senate are discussed as things accomplished and to be faced with all the consequences. For some req son that is not clear the ascendency of these new forces has come to be regard ed as possibly the best thing that could happen. The closer the street becomes &C., quainted with Mir. Wilson. the greater the confidence that he will be a safe man. It Is now believed that his influence will be to restrain radical political action and to 30 about the all important issue of tGrin revision with due moderation and desire to avoid unnecessary disturbance
 in manufacturing and commerce The be-
 lief becomes stronger that he may even