The Birmingham age-herald., 1912-09-01
N KIT IS GETTING LADY FOR ACTION Sparring for Points During
 the Past Week TO REOPEN TUESDAY Thousands of Brokers Who Have Been Taking Dog Day" Vacations
 Will Be Back on the Job
 This Week
By W. G. NICHOLAS

By W. G. NICHOLAS
 New York; August 31.-(Special.)-Th stock market has been sparring for points all week. It has acted as though getting ready to do something spectacular. Whether the next movement is to be a boom break Is problem about which opinion seems to be very evenly divided. at least among the spectators who trade for turns. One result of the nervous, nar- row uncertainty of the situation lately has been to encourage the creation of heavy short interest. That makes it easy for the really important people to keep mat ters well in hand and in shape For big action when the time arrives.
 The statistical and news features are overwhelmingly bulIish apparently, but for some reason which is not clear to the. world at large stocks do not go up. There has not been much of a reaction from high prices reached two or three weeks ago but the public Is no longer buying in quantity and the banking and syndicate interests are doing as little as they can, and still keep up an appear ance of life. This latter clause of tho statement does not apply to the bobtail pools which have taken upon themselves the manipulation of a. long list Of new things, chiefly industrials as yet com paratively unknown to the outside world. Likewise they are unknown to the in side world, but enough life has been in- fused into the queer stuff to arouse more or less interest among the traders. The daily reports of sales on the exchange show that there is quite a bit of trading back and forth in them but as to the merits of the securities there is no in- formation except what is given out through the paid or interested agencies employed to market the output. As result "chromos are in numerous circula- tion in and about Wall street. The "en- velopes" of the brokerage houses are full of the goods. a considerable volume of which finds it's way into the banks as collateral. Without the names of the banking and brokerage houses as n- dorsers the stuff would have no value with the banks. It is simply used as filling" Should there be any material break in prices the junk would be thrown out without mercy.
 This accumulation of securities of un- known value or no value is really becom- ing a menace to the general Situation and may yet play an important part should there ensue period of decided liq- uidation. Broad conditions are gen. erally encouraging but there are just sufficient uncertainties in front to un- settle speculative and investment con- fidence to some extent, in spite of ooun,e- ous crops and tremendous industrial ac- ;. tivity. Politics, labor agitation and the strong probability of tight money are among the factors which operate against an advance at this time in the inme- diatei future. The bullish oratory and arguments make light of these tales of impending calamity and insist that noth- ing can stop the great wave of pros perity which is to find reflection on the tape" These two sets of arguments place the market on an even keel 50 to speak, and give the spectators field for the play of imagination and q chance to gamble their money.
 The Labor Day recess marks the end ing of the recognized period of dog day dullness, which is supposed to begin about July 1 and end as beforesaia. with the almanac arrival of the day given over to the observance of Labor Day. The vaca- ton season is over. and on Tuesday next the financial district will witness the return of thousands of men usually ac-, tive in the stock market and affiliated lines. but who have been practically dor inant for weeks. They have been at sea- shore and country resorts in drovcs, and their return to work will be a great event GOT ought to be.
 The week has not produced any very great amount of news. The adjourn fneut of Congress had some sentimental influence, but it was not felt very long. The incident was celebrated by a rise in the stock market of a point or two but the improvement did not hold. Neither has there been a serious re- action, just setback to encourage renewed short selling by an irrecon- cilable bear element which gets strong and aggressive whenever trading stag mates. Leading bankers and f1nanciers and the managers of the vast indus trial end railroad interests are for the most part bullish, but they con- fessedly admit that they have no fixed opinions looking very far ahead. They privately admit that Wall street takes very light and inadequate view of the disturbance which is likely to re- 2 suit from actual tariff revision, but there has been so much unrest and uncertainty in the business situation during the last two or three years that people of affairs as well as the com mon people have become hardened to the experience. They are in a. frame of mind to stand almost anything with out going into convulsions. They are like the eel that was skinned so often 1t got used to it.
 At the bottom of the unrest Is the ,undeniable and as yet not thoroughly understood fact that we are passing through revolutionary readjustment
 
 as social conditions due to the expan- sion of gold. This has been going on with increasing volume for 12 years and has lowered the buying power of tho paper dollar 20 to 40 per cent The wisest are unable to forecast with assurance when and where and how the mighty problem is to be solved. Such being the case, Is 1t a wonder that the multitude is stirred up and does not know exactly what the matter is? Bonds and other forms of fixed in- come bearing investments are declining month by month and year by year. At the same time rampant spirit of spec ulation is generated which sooner or later will make itself manifest in the stock market. That is the natural chan mel for the gas to work it's way out. Industrial activity is under highest pressure. It is geared for speed and volume. Steel Is the leader. The mills