The Birmingham age-herald., 1913-08-17

invited to forget about Wall street and
ccme right into the treasury parlor and
help itself first hand to the savings OF
the customary back door commissions
exacted by f1inty hearted professional
money lenders.
Bears in a Panic
What followed bordered on the mira c.
ulous Wall street at first belittled the
Washington demonstration, but the public
came to quick appreciation of it's far
reaching Importance. 1t was recognized
as a complete emancipation from long
prevailing financial slavery, with the
power lodged in Manhattan island for
Wholesale control of money and credit.
| A liberated public made it clear that it
understood the scope of the Washington
| programme. Speculation and general
business made sensational response to
the McAdoo move. Things have been
happening ever since Mr.. McAdoo resur-
rected memory of the forgotten $500, ,0O0
900. Finding that neither bluffing nor
assumed contempt would dislodge the gall
| liant McAdoo, the money contingent
backed water and came into the McAdoo
camp. The money market softened every
where. An acceptable currency bill was
framed and tariff friction was slowly
ironed out Some of the poison in the
Mexican situation has been extracted
The nerve stricken European nations have
calmed down. greatly to the advantage
of both hemispheres. And then there are
the r-opst
As matters now stand the stock market
Is the chief beneficiary of the sweeping
Improvement. 1t is but the registry of
the tape that the public is able to form
correct estimate, of the significance of
the several forces that have been set in
motion, within the recent past. With
advancing prices the scope of speculation
has widened and from daily sales of less
than 100000 shares the volume of trading
foots up 100000 shares and better. Fully
half the ground lost on the long decline
has been recovered, and the element of
hopeless depression Is gone. Bears are
disorganized; month ago they had full
possession of the field and bulls were in
disgrace. McAdoo, successful politics and
good crops were the leading factors-all
of them legitimate forerunners of whole
sale business recovery and trade expan-
sion in every quarter.
Steel Union Pacific and Reading were
the leaders throughout the entire course
of the bull movement thus far. Trans
actions in these speculative favorites
averaged more than 60 per cent of the
daily grind. The Coppers, st. Paul,
Southern Pacific, the Hill stocks, the
New York and Brooklyn fractions, Cana
dian Pacific, Chesapeake and Ohio and
active and higher. Several attempts have
been made. without avail, to smash Read
ing A day is lost that does not bring
tidings of new phases to the government
suits, brought or to be brought against
the king of hard coal carriers. Less than
40 per cent of Readings by no means
large capital is free for speculation on
the stock exchange, yet trading in it
averages 20 to IS per cent of the total,
not infrequently. OF the $40 100000 of
Readings share capitalization, Baltimore
and Ohio and Lake Shore own outright
$6S, 100000 or nearly so per cent. There
have been days almost without number
when the trading totaled an equivalent
OF the entire apparent free supply. How
the game is played without interruption
on that colossal scale is the standing
puzzle for spectators and market his
tcrans. Where do the certificates come
from with which to make daily deliveries
and where do they go to without perrna-
nently disappearing is the standing ques-
tion in the financial districts of every
city in the United States.
Large Short Interest Develops
A very large short interest developed
during the last week or ten days of the
| advance According to the reading of
most market ''sharps" the bear element
| is in for either tremendous licking or
| a spectacular winning. As the market
| broadened opportunity was furnished
spectators for the first genuinely big
play in months. That they took advan-
tage of the chance goes almost without
saying An open speculative short in
terest of 100000 to 2500,000 shares would
not be surprising Many of the plungers
who take individual risks of 100000 to
200 900 shares are back on the scene. Sew
eral of the hardest players are still
abroad and cable orders are quite a fea-
ture Of the current trading. Europe has
at length recovered perceptibly from the
financial nervousness incident to the war.
The slaughter of 100000 human beings and
the expenditure of more than 100000 900
is reasonable insurance of prolonged
peace.
The triumphant campaign. for the dis
tribution OF Union Pacfic's $SS 900, 600
Southern Pacific stock has been watched
curiously by large and interested audi
ence. The theory is unkindly held by the
skeptics that very able manipulation fig
ured in the general market movement.
as preliminary to the action of actual
unloading. This covert allegation Is in
dignantly and earnestly denied by the
banking houses concerned The skeptics
aforementioned fippantly predict big
reaction in the market on the comple.