The Birmingham age-herald., 1913-07-27
BUYING PICKS Up
At RAPID RATE IN
GREAT MARKETS
Small Investors Quicker to
Take Hold Than Some of
the Regulars
DECIDED CHANGE IS
NOTED FROM ABROAD
New York Pays Little Attention to
All the Sensational Stories Being
Sent Out From Washington
About Complications
Rx w. G. NICHOLAS

BY w. G. NICHOLAS
New York, July 26.-(Special )-Friendly
Brokers and financial scouts have been
exchanging notes of late on the volume
of investment buying of stocks and bonds
since the recovery began few weeks
ago. There has been a general canvass
throughout the Wall street district and
the result represents not less than % per
cent Of the total number of Stock Ex-
change houses and banking institutions
that specialize in that class of merchan-
dise-a number large enough to give a
line on what has been going on.
From the figures already obtained it
is safe to estimate that the investment
absorption of securities has already run
up into the hundreds of thousands of
shares of stock and probably an equiva-
lent amount of bonds. Buying of bonds
on a liberal scale, however. is of recent
origin, although the demand in that dl-
vision of the market is assuming salts
factory proportions. 1t is the little fell
lows" who have shown the most nerve
and the quickest appreciation of returning
courage and sanity. The so-called Job
lot" houses have been doing the bulk of
lne investment lOT Tue puDliCs III LWO
or three concerns that have specialized in
.'job lot' trading the individual buyers
number far up into the hundreds, the ac-
counts running from 1 to so shares each,
the average being about IS shares. The
bulk of this class of buying is evidently
for the account of people of small and
moderate means. The transfer books of
railroad and Industrial companies with
seasoned records for earning and paying
dividends are the favorites, industrials
standing about as well as the rails
Liberal Percentage of Money
On the new investment lists there is
liberal percentage of women and truss
tees Savings banks and insurance COM
panies are also feeling about. "On paper
they suffered heavy losses by the decline,
but as market prices recover their posi-
ton becomes stronger and their state of
mind more comfortable. And then there
is the neutrality-suspicious. class, the
largest and strongest contingent in the
market The rule is that when they get
stuck with big losses they sweeten their
accounts with fat fresh margins to the
extent of 20 to 30 per cent, and then go
about their business, they having deter
mined as a finality that the investments
are intrinsicaly sound and that it is
sense as well as patriotism to stick tight.
This they do, en- masse. When this de-
termination is reached by large aggre-
gate of people it almost invariably marks
the end of a long decline in prices.
Foundation building generally goes on for
weeks and months, as in the present
case, ard professional traders are the
last to grasp the fact that 'the public
got in first" Not until brokers have to
IBID for stocks through a series of days
without meeting with offerings at cur
rent quotations, does the great truth con-
vincingly dawn upon them that the mar
ket has been drained dry and is harden
iug-that the turn has come; the sun shin
ing through riffs in the clouds
Change Noted Abroad
The changed tenor of financial and dip
lomatic advices from abroad was an I'M
Eportant factor in the American stock
lmarkets, especially New York The for
egn outlook is more favorable and the
controlling sentiment is one of the conf
dence in quarters where timidity was
most manifest down to a late date.
Calmness has returned to London, and to
a somewhat less degree to Paris. Ger
many expects to be a moderate borrower
for good while ahead. The war outlook
lis less formidable not because of dim
inished bellgerency, but largely because
of the wholesale humiliation of fighting
men. There has come simultaneous eX-
haustion of money and warriors. To
raise capital to meet dong continued de-
mands incident to wars and politics it
was found necessary to unload upon the
American market great quantities of our
securities, larger in volume than was gem
orally estimated. The tide of money
turned backward once more and Europe,
tnstead. of being an oppressibe burden is
again buying our securities, and at the
same time stopped further pulling down
cur supplies of gold. 1t took sos, 600
to satisfy the foreign lust for American
treasure The international money situa-
tion is more nearly on an even keel than
at any time within a year. Indications
point to the early return of some of that
gold and the retransfer of capital and
c; edit to this side of the Atlantic In
vestors in Great Britain and on the con-
Z tnent are hungry once more for our se-
curities, factor of first Importance in
supplying backbone and foundation to the
home. situation, The literature being sent
out from the financial quarter to custom
ers and the press is conservatively bull
lish in tone, but saturated with advice
to be cautious and patient
Confusion Commercial Conditions
There is sad confusion over manufac-
turing and commercial conditions. Evi-
dence is abundant (of certain kind that
the VOlulne OF general business is still
shrinking and that working men and
women are being discharged in vast num-
bers. Hard times are represented to be
overwhelmingly upon us. On the other
hand, latest reports show immense ton
mage being carried by the railroads, at
record-hreaking gross returns. The in
crease of traffic seems to extend from
ocean to ocean and the gulf to Canada.
The international movement of commerce
Is the greatest in history and the bal
6nce in our favor was in excess of $780,
100000 for the year. To such an extent
has the demand for labor developed that
over 100000 foreigners have crossed on
the immigrant ships, and the clamor is
for more. Yet in some communities there
is heard the cry of men by the tens of
thousands alleged to be "out of jobs"
The crops give promise of a full average
yield. How is the unbiased inquirer,
striving to acquaint himself with vital
facts necessary to the formation of sane
judgment, going to arrive at conclu-