The Birmingham age-herald., 1912-10-06
THINGS CAUSED REACTION Time Not Opportune for Big Bull Movement GOOD TIMES AHEAD Representatives of Every Line of Big Business Convinced That Onward
 and Upward Is Now Upon
 the Country
 By ". c. NICHOLAS


 New York, October 5.--(Special. )--The stock market had it's setback thls week and the recovery. It was going too fast uphill and got out of breath. It went up against s1s per cent call money, a series of semi-panies on the Continental exchanges incident to the threatened Bal kan war, an over-bought condition on the New York Stock exchange and a general feeling that it was time to call halt. The street was full of "sold out bulls who had taken profits and were waiting for reaction of importance so they might get back in again and this element has considerable influence in shaping sentiment. It stands around looking and talking grouchy and predicting all kinds of disasters. The sold out bulls are really of some consequence by reason of their drowning attitude and the knowl- edge that they are at heart bulls. That they should believe prices will go lower Is, therefore, impressive upon the multi tude. And then there were many honest. unbiased operators and business men in and about Wall street who felt that the time was not opportune for big bull movement in the stock market-not while there was still heavy financing to arrange for in connection with the moving crops and in the care of general business. It also transpired that the banks not only of New York. but other large fiscal cen ters had to prepare for very heavy dis tribution of october dividends and interest payments. Also the comptroller of the currency had discovered that tle national banks throughout the country had been over-extending the loan account At the same time they are reducing cash depos- its. In obedience to the signal the banks have been calling in loans and putting on the brakes in other respects.
 Altogether the situation favored a re- action and 1t arrived a little late, but none the less effectively It hasn't been much of setback, however, and while some of the leaders and favorites have backtracled several points, the general list shows comparatively small loss. Ii is a fact which the events of the week have disclosed, that the public Is in stocks on very much larger scale than com monly estimated. The public has seen and realized the measure of industrial 
 clearly than Wall street and has assumed a very friendly attitude toward the stock market in consequence. The public has been picking up all varieties and brands of stocks, from the low priced speculative and wind-blown issues to the seasoned securities that have record for earning and paying dividends. It is a steady and absorptive demand from that source which is encountered on every reaction. big and little. It is the element which disturbs the sold-out bulls and trightens l them into buying on the small breaks | when they had planned to wait for slumps. They are oppressed with a fear that if they put off buying they will be | condemning themselves to paying higher | prices later on. They believe that the | situation is bullish and that prices are | destined to go much higher before the | end of the year.
 As near as can be learned, a very heavy | majority of the leading men in Wall street | and that classification includes repre- | sentatives of every line of big business in | the country, are firmly convinced that the | country is in the early stages of great | onward and upward movement and that | prosperity is a thing of the present as | well as a feature to be considered as | part of the next two three years. Feel i ing that way, they are shaping their | plans accordingly and are friendly to the | stock market. That does not mean that | they are backing wild speculation or en- | couragng it. The experience has taught | them that the best way to promote Q | grand bull movement is to check extraya- | gant demonstrations and proceed with | moderation That is what they are trying | to do now, and circumstances are helping | them The features mentioned Tn the | opening paragraph of this dispatch are the agencies that are working naturally 1 to repress unsafe nthusiasm-something | the market was in need of. The volume | of trading on the exchanges is heavy | and extends through all varieties of se- | curities Brokers who represent to large | degree the professional element are di- | viding the Business with the commission l houses which represent the public. For months the strictly brokerage concerns have the bulk of the trade. There was no let up. however. in the | activities of pools and syndicates behind specialties. Every new industrial and many of the old ones are represented on | the exchanges by combinations of greater | or smaller consequence, al lbent on max ing money by manipulative maneuveiing. | The street has not been so saturated l with the gambling spirit for two or three years as it is now. The theory IS that the public will dump hundreds of millions of dollars into the market and every body who has stock promotion scheme on wants to get some of it. Those who have some semblance of conscience left say they want to get the public in Tn order that the multitude may participate in the good things that arc floating around. The