The Birmingham age-herald., 1913-08-03
No Satisfactory ExpIana-
ton Has Been Offered for
Present Conditions
BANK ATTITDE is
STILL DISCOURAGING
Many Believe That American Inter-
ventiOn in Mexico Would Be
BuIlish Factor Rather Than
Favoring the Bears
nv w. G. NICHOLAS


New York. August 2.-(Special)-T
stock market has had a hard time trying
to hold its own Sentiment changed sew
eral days ago, and the widely prevailing
bull feeling gave way to return of sus-
pieion. distrust and a ruling impulse
among traders to take the down side.
There was no wild rush to SELL but a
growing sense that the upward swing had
run its course and that a reversion of ac-
tion was in order. Good news and favor
able developments were no longer at
tended by wholesome rallies and the glad
chorus of publicity as a stimulus fell fiat.
Anger and disappointment were the first
symptoms of the change in market tone.
For some reason the heavy aggregate
buying for account of the public fell
away. The demand was satisfied, for the
time being. Absorption by little people
was an important factor, while it lasted,
and contributed largely to the increased
market activity, and to the advance of )
to 3 points in prices. The little people
were not borrowing money with which
to buy or speculate. They were using
their own modest savings for investment
in securities, and when that source Of
supply subsidized as might have been nat
urallY expected would be the case, the
market support weakened 1t was a case
of eating big meal and sitting back con-
tentedly TO give the food time and
cha'@as to digest.
me people who partook of the nourish-
psent are not complaining; neither
- { they in a panic of distrust. The
grumblng comes from those who over
bought the market on the rise, and are
sore because the healthy recovery in val
ues did not develop into a reckless specu-
latlve bull movement. The supply of new
and unusual investment capital was alb
sorbed, in a short time. not because of re-
vulsion of feeling, but by reason of SAT-
isfied appetite. Whether or not there win
be an immediate return of impressive bu-
lish sentiment is the open question which
now. enrapts attention. Ruling opinion
a the moment is apparently of bearish
tenor.
Bank Attitude Discouraging
The attitude of the banks has beenNdis-
couraging. They have been contracting
credit and filling their vaults with cash.
They say they have been making prepara-
tions for dividend and interest payments
and for the movement of crops-also to be
prepared for Washington attempts to en-
act currency legislation not unanimously
to their liking. Borrowers run up against
a stone wall when they appeal to the
banks.
A cynical gentleman of goodly fortune
who had the settlement of a large estate
on his hands, explained the situation
from his latest viewpoint, in these few
words: IT ehbanks are hinty hearted.
They have plenty Of money, yet they are
pinching credit at every point to increase
the hoard. Fear and distrust are at the
bottom of the policy that is now govern
ing them. ! half believed the story told
by a rich friend of mine about going to
his banker to borrow trivial $50 to meet
a passing demand What do you want TO
do with $780, asked the banker in an icy
tone The caller snappishly replied that
he might need it to build chicekn coop.
whereupon the money lender closed the
interview by tersely saying, This bank
has no money to risk on extravagances or
business expansions Wait till next
spring.
The situation isn't quite as bad as that,
but the average New y ork bank has be-