Evening star., 1912-09-01
SPARS FOR POINTS
Market Acts Like It's Ready
for Something Spectacular.
where THE MENACE LIES
Accumulation of Securities Of Un-
known Value Causes Concern.
THINK DULL SEASON OVER
Passing Through a Revolutionary
Readjustment Of Prices at Bot
tom Of Unrest.
THINK DULL SEASON OVER
BY w. g. NICHOLAS.

Whether the next movement Is to be a
Doom or break Is a problem about
Wnfch opinion seems to be very evenly
divided. at least among the spectators
who trade for turns. One result Of the
nervous. narrow uncertainty of the situ-
alton lately has been to encourage the
creation OF heavy short interest. That
makes 1t easy for the really important
people to keep matters we'll in hand and
In shape for the big action when the
time arrives The statistical and news
features are overwhelmingly bullish ap-
parently. but for some reason which is
not clear to the world at large stocks do
not go up. There has not been much OF
reaction from high prices reached two
or three weeks ago, but the public is nc
longer buying in quantity. and the bank
Ing and syndicate interests are doing as
little as they can and still keep up an
appearance Of life.
This latter clause Of the statement does
not apply to the bobtail pools which have
taken upon themselves the manipulation
OF q long list Of new things, chiefly in
dustrials, as yet comparatively unknown
to the outside world. Likewise they are
unknown to the inside world, but enough
life has been infused 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 information except what is
given out through the paid or interested
agencies employed to market the output.
As result 'chromos' are in numerous
circulation in and about Wall street.
The envelopes of the brokerage houses
are full Of the goods. a considerable vol
ume of which finds it's way into the banks
as collateral. Without the names of the
banking and brokerage houses as in
dorsers the stuff would have no value
with the banks. 1t 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 be-
coming menace to the general situa-
ton and may yet play an important part
should there ensue period Of decided
liquidation. Broad conditions are gen
orally encouraging. but there are just
sufficient uncertainties in front to un-
settle speculative and investment conf
dence to some extent. In spite of boun-
teous crops and tremendous industrial
activity. Politics. labor agitation and the
strong probability of tight money are
among the factors which operate against
an advance at this time or In the i'm
mediate future. The bullish oratory and
arguments make light of these tales of
impending calamity and insist that moth
ing can stop the great wave of prosperity
which is to find reflections on the tape
These two sets of arguments place the
market on an even keel. SO to speak.
and give the SPECTATORS field for the
play Of Imagination and a chance to
gamble their money.
Dogday Dizziness Ended.
The Labor day recess marks the ending
Of the recognized period Of dogday dull
ness. which Is supposed to begin about
the LIST Of July and end. as beforesaid.
with the almanac arrival of the day given
over to the observance of Labor day. The
vacation season Is over and Tuesday
next the financial district will witness the
return Of thousands OF men usually
active In the stock market and affiliated
lines, but who have been practically dor
mant for weeks. They have been at
seashore and country resorts in droves.
and their return to work will be a great
event-or ought to be.
The week has not produced any very
great amount Of news. The adjournment
of Congress had some sentimental in
fluence. but 1t was not felt very long.
The incident was celebrated by a rise
in the stock market Of point or two,
but the Improvement did not hold.
Neither has there been a serious reaction.
just a setback to encourage renewed
short selling by an irreconcilable bear
element which gets strong and aggres-
sive whenever trading stagnates. Lead
ayers of the vast Industrial and railroad
interests are for the most part bullish.
but they confessedly admit that they have
no fixed opinions looking very far ahead.
They privately admit that Wall street
takes a very light and inadequate view
n fc lxaly f0 re.
suit from actual tariff revision, but there
has been so much unrest and uncer-
tainty in the business situation during
the last two or three years that people
Of affairs as we'll as the common people
have become hardened to the experience.
They are in a frame OF mind to stand al
most anything without going into con-
vulsions. They are like the eel that was
skinned so often 1t got used to 1t.
At the bottom of the unrest is the un-
derstood fact that we are passing
through revolutionary readjustment OF
prices, values and economic as we'll as
social conditions due to the expansion
Of gold. This has been going on with
increasing volume for twelve years. and
has lowered the buying power Of the
paper dollar 20 to 40 per cent. The
wisest are unable to forecast with as
surance when and where and how the
mighty problem is to be solved. Such be-
|
titude Is stirred up and does not know
exactly what the matter is? Bonds and
other forms of fixed income-bearing in
vestments are declining month by month
and year by year. At the same time a
rampant spirit Of speculation Is gener-
ated which sooner or later will make IT.
self manifest In the stock market That
is the natural channel for the gas to
work its way out.
Activity Under High Pressure.
Industrial activity is under highest
pressure. It Is geared for speed and vol
ume Steel Is the leader. The mills and
furnaces and all the manufacturing en-
terprises associated with the iron and
steel specialties are running full blast.
Lake shipments Of ore from the mines to
the docks at the manufacturing end will
approximate 100000 tons this season,
or 1900, 600 tons more than ever before in
a single year. The next highest was
43. 600 600 tons in 1910 and $4,000 tons
in 1907. Shipments in 1904 were only
13, GOO 600 tons This illustrates the de-
velopment of the steel industry during a
period Of eight years. five of which are
classed as years of depression. Steel
plants have six months to eight montns'
work on their books II they are not to re-
ceive another order. Car equipment COM
panies are full up for six months to q
year. shipyards have more than they
can do at full capacity for two years.
Copper production Is the greatest ever
known. and the consumptive demands are
keeping up with the output. Railroads
are straining themselves to handle pres
ent traffic and are confronted with six
to eight months Of cord-breaking tom
mage. The grand total value of farm
products promises to approximate $1O-
on 600 600 a figure never before ap-