The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-11-02
MARKET NERVOUS
BUT REFUSES To
HIT THE BOTTOM
Chairman Clark's Speech
Regarded as Piece of Good
Stock Market News
GOLD IMPORTS ARE
ANOTHER FACTOR
Steel Corporation Earnings Somewhat
Less Than Expected for Quarter
and Railway Earnings
Show Falling Off
Bx w. G. NICHOLAS

BY w. G. NICHOLAS
New York. November ESPECIALLY
Within narrow limits the stock market
is in fever of uncertainty. Any medi-
cal student looking for cases of acute
nervousness to study would have had
the time of his life in Wall street dur
ing the week. Everybody has been
nervous. Most of the professionals
have been upset by the persistent re-
fusal of the market to make sensation
ally-new low prices on the bad news
that has been published. There has
been a food of disquieting news. On
Thursday morning the financial pages
of the newspapers recorded that the
earnings of the United States Steel cor
poration were some $4,000 600 below ex-
pectations. that the earnings of the
Union Pacific for the three months end
ing with September showed a decline
in the net of little more than $780,
900, that the earnings of the Southern
railway for the same period declined
sharply. and that London was growl
Ing because American financiers had
engaged $2OO0,Vo0 In gold in London
for import into the United States.
All of this news, from the viewpoint
of the SPECTATORS. was bad news. On
news was published IL was that Chair
man Clark OF the Interstate CONNER &c
commission In a speech had said Lnat
the increased euicIency uemanued from
the railroads would eventually result
in Increased cost 10 the shippers. sucn
was the technical CONDITION OF the mar
ket that ii disregaraea the Lau new
and hardened on the somewhat yas ue
remark of Mr.. Clark. 1t is a TACT, now
ever, that since Mn Clark made mis- pa
CHIC suggestion deciueuly better ieel-
ing Is developing, and the prediction is
beng frequently voiced that uistInc-
lively forward move is making Tor per-
manent peace between hitherto bathing
factions The Clark speech was quite
an important market incident in the re-
cent proceedings.
Steel Corporation Earnings
The statement of earnings of the
United States Steel corporation, while
a disappointment in a way. was still
| the third best statement for the thira
quarter of the year ever put out by the
corporation. Net earnings of S3S,450,-
600 for three months are impressive
when regarded by themselves. Of
course. they are not so impressive when
compared with estimates that ran IN
! some cases as high as $43,UOO,UoU but
at the same time the earnings of the
corporation would be considered to be
eminently satisfactory were 1t not for
the feeling that from now on there may
be further contraction of the steel
| business and a consequent falling off in
earnings for the balance of the year.
But IL the railroads were to be favored
With an early increase of freight rates,
the buying from the railroads alone
might conceivably tu.n the tide of the
earnings of the Steel corporation from
the present downward trend to still
higher figures. This might happen dur
Ing the last quarter of this year, or dur
ing the first quarter of 1914. 1t may be
said here that German steel competition
under the new tariff law does not look
more than one-third as fearsome as IL
did few weeks ago. The Germans are
making a lot of figures for American
consumption. but they are not. thus far,
making much steel for us. Their fig
ures will not hurt us If their steel does
not come here.
Railway Earnings
1t is generally conceded that the
statements of earnings put out by the
Union Pacific and the Southern railway
are samples of earnings that are likely
to appear for the various railroad sys-
TENS for some little time to come There
Is no question at all now. but that
American railroad earnings fell off dur
ing September and the same Is true
of october. So statements of earnings
are apt to be poor. But at the same
time II must be remembered that the
stock market has discounted some pref
ty poor statements by the declines
Stocks are always low when the divi-
dend return on them Is conspicuously
above the rate commanded for mdAey
Railroad stocks are now down to a
point where they yield the investor bet
ter than per cent In great many
cases.
Money is loaning on time at from s
TO 5M per cent and the call rate Is
around per cent Unless there is to
be complete collapse of our business
machinery there must come q readjust-
ment, and as money is at about normal
rates for this period of the year It
seems to students Of such things as IL
the adjustment were most likely TO
come from an advance In the price II
stocks to point where their dividend
yield will about balance the money rate
OF course In boom times stocks go SO
high that they yield. in many cases.
only three or four per cent. Nobody
expects anything like that to happen
for a good while, at least.
Effect of Gold Imports
Gold imports usually act as tonic on
business The engagement of 5000. 900
In London for import this week did not
act as a tonic. Gentlemen whose bus
mess 1t is to watch the international
money market said that when New York
engaged that 100000 in competition
with the Bank of England the British
Lion let out roar that was plainly
heard from Threadneedle street to Wall
street, and there was a prompt SUCCESS
ton that the Bank of England might
make another advance in it's minimum
rate Of discount to prevent any more
gold being shipped to New York The
Bank OF England rate is now 5h per
cent, and II 1t is advanced at all it will