The Birmingham age-herald., 1913-01-05

division of activity-industrial, financial
and commercial The new year is entered
upon with unusual prospects of contin=
uation of the era of good times that set
in about six months ago and has pro-
gressed without interruption down to
date
A feature of the stock market as it
now presents itself is the light floating
supply of shares available for speeula-
tive short selling. The enormous volume
of securities that came on the market
during the period of liquidation which
began around the first of November has
dwindled to small proportions, so far as
the professional observers can determine.
Where has the enormous supply gone? is
the question that is now holding the at
tention of Wall street
It has either gone into the hands of the
public or of strong concentrated inter-
ests. 1t is a fact that the public has
not absorbed securities during the last
go days as freely as good many people
would like to make themselves believe.
The generality of commission houses and
brokers agree upon this point There is
always a quiet buying of stocks aud
bonds during periods of depression but
it has not been going on of late in
very impressive way. The prevailing dis
position among the small investors has
been to hold off. 1t is very doubtful If
the number of actual shareholders is as
large now as it was 60 days ago. The
conclusion is therefore general that very
rich combinations and interests are 'un-
der the market" to the extent of locking
up any over-supply which might other
wise embarrass the situation and prolong
the uncertainty of the public.
The gamble Is at the present moment
will the big interests let prices down as a
preliminary to bull market upon which
to float new issues of securities, or will
they hold the market steady around cur
rent levels until the inflow of money sup
plies the necessary raw material for a
campaign for higher prices? The bulk of
opinion leans TO the latter theory. The
automatic inflow of money for 10 years
or more with a single exception) has
been at the rate of about $10,000000 a
week for the five weeks following the
first week in January and there is no
reason to believe that the tendency will
be changed this year. The period of vis-
ible money relaxation in this center usual
ly dates from about January IS and con-
tinues until nearly midsummer BY that
time crop prospects take form and spec
ulation is influenced by the agricultural
outlook
Apparently there is no good reason to
anticipate radical departure from the Gus
tomary January routine in the action of
large business affairs. The problem be-
fore the ruling combinations in the bank
ing and business world is how they can
direct the forces to their best advantage
and to the advantage of active enter
prise
Railroads will be the leading and most
urgent candidate for the surplus capital
which will accumulate and they are well
advanced with their plans. Whether
these plans will materialiZe as tentatively
proposed remains to be seen. If they do
the year ahead will be record breaking in
the amount of money spent on railroad
improvements, of track terminals and in
increased equipment. This Is the hope
and expectation of the men entrusted
with the management of the great trans
portation systems which represent more
than majority of mileage and traffic.
To what extent tariff revision will in
terfere with or interrupt business head
way rs a problem upon which there is
considerable disagreement of opinion. and
it is undisputably a factor of decided
market Importance. II is a habit among
flnanciers and operators in the stock
market to attempt to make light of the
tariff agitation, but the great body of
manufacturers and their financial fnti-
mates know better than to treat the sub
ject lightly from a false viewpoint
They are preparing to meet DEVELOPMENTS
as best they may and do not really an
ticipate heavy losses. Their policy will
be to meet the situation fairly and
squarely and readjust themselves to
conditions with the least posi-
BILE Inconvenience and sacrifice. Political
assurances from washington that the
tariff will be revised with the least possi-
Bile disturbance is being taken In entire
good faith by the multitude of solvent
cerned. Scare talk will be largely con-
stock market which prefers to play the
bear side.
A spirit of buoyancy pervades Wall
street which has not been felt there in
weeks 1t is reflected In a vast majority
of the offices of brokers and bankers 1t
is felt by the army of investors and spec
ulators. There is no disposition to fly
off the handle and 'lunge' in antieipa-
tion of a spectacular boom. Rather, it is
a sense of certainty that conditions favor
a gradual and healthy improvement in
every directon-a movement which is
based on firm faith that we are all in a
growing state and that sensible people
can look forward with confidence 10 a