The Birmingham age-herald., 1913-07-13


cial recession, crops still an unsettled
question although of fairly satisfactory
promise, a threatened railroad strike of
magnitude, continued uneasiness In
foreign money markets, political agita-
tion at Washington and elsewhere and
progressive liquidation of public uitli-
ties companies. Values have not un-
dersone serious change, although a
downward tendency was the ruling
force most of the time. Considerable
Investment absorption of stocks by the
small people is reported by the general
run of brokerage houses. Low prices
are attractive, from an interest stand
point.
The recent so-called sporadic" finan-
cial explosion in Pittsburg calls atten-
tion unpleasantly to the possibility of
an expansion of that class of disaster
to other cities. When the public began
to desert the New York Stock Exchange
a couple of years ago 1t turned its at
tention to public utilities, and oil stocks
and widespread speculation sprang up
in them Philadelphia. Pittsburg, Gin
cinnati. Louisville. Cleveland, Chicago,
Detroit. Milwaukee, st. Louis and sew
eral cities of lesser Importance became
hct beds of undisciplined speculations
in the shares and bonds OF newly or
ganized companies. Prices were
doomed all along the line Underwrit-
ing combinations acting with the
friendly cooperation, and oftentimes
actual backing of banks and trust COM
panies, lent force and confidence to the
campaign and contributed to the ac-
tivity of the freshly discovered get
rich quick enterprises. Excitement ere
long degenerated into frenzy in many
communities. Millions upon millions
of dollars of foolish money We're in
vested in rainbow securities by a cre-
dulous horde of men and women
throughout the length and breadth of
the land. AS prices advanced the ex-
citement increased and the volume of
distribution of doubtful or worthless
certificates assumed appalling proper
tions. Hundreds of millions of good
will'' and Expectations" sold at fancy
hgures. The public, which had quit the
New York Stock Exchange because of
i'll treatment. went from bad to worse.
1t is paying the fiddler.
Utilities Began to Tumble
The utilities markets finally began
to topple, and for several weeks there
has been terrific liquidation of wind
blown creations called by courtesy
stocks" In every city in the coun-
try underwriters and brokers laid down
on the banks, margins and partial
payments" went into the flames. The
"smartest" among the insiders those
who had sold at outside quotations
kept their money; others played back
profits in an Intellectual attempt to sus-
tain a grossly. artificial market. The
collapse has been general. Every COM
munity has suffered punishment. Fail
ures have been many and fresh ones
fill the records of each successive day
At first they were belittled by the lame
explanation that they were sporadic"
and of no general Importance. That
pretence is being abandoned, and now
the fear is openly expressed that we
are on the eve of a Wholesale Cor Is it
wholesome) Observation-Disclosures III
individual losses, but monumental in
the aggregate. 1t has become bear
ish factor of Importance in the stock
market. 1t Is being felt in half the
banks west of the Delaware river, and
finds sympathetic response in New York
and New England. Possibly the exper-
ience will be eventually beneficial to
legitimate stocks-sanity may some-
time be restored.
Chances of Great Strike
Down to the present writing the