The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-04-18

may illustrate the underlying strength
of the financial situation.
A few days ago a bank president was
met in a brokers' office. Alphabetically
he said: Il have come over here to es-
cape my depositors. We have 5000 ac-
counts and have just computed that, on
the average. every depositor has 50 per
cent more money than a year ago. l am
besieged by them to know in what to in
vest their money. They want to buy
stocks. but l do not dare to advise them.
Nobody ever gets any credit for advis-
ing anybody in the stock market. / have
come over here to get a brief respite,
and at that time he was not looking at
the stock market and there were not three
customers in the brokers' office. The
people were besieging the banks to know
what to do with their money. No other
result could arise from that situation than
exactly what has taken place.
One of the foremost business men of
the United States was encountered soon
after In another brokers' office and asked
concerning the situation. He replied:
Wilson and Wall Street
when Wilson was elected, l looked
over my investments and sold every share
where the companies were borrowing
money. In the corporations which 1 di-
rected l made sure that their cash was
strong; that there was no floating lndebt-
edness, and also that there was no con-
templated expansion of the business. /
felt / knew what tariff revision would do
for the United States. Today. business
is not good throughout the United States.
There is a revival in Wall street from
cheap money and In anticipation of a
change in administration, and there are
orders from the wheat sections of the
country and sections where war orders
have stimulated business. The country
= - I...t
new tariff but for this war Mr.. Wilson
has no chance for reelection and a bust
ness administration will succeed him.
Protecting the COuntry's Business
II have carefully read over Mr.. Barrons
2S articles on the federal reserve act
and now fully believe that the business
of this country will be protected from
money Irregularities
Therefore, l am buying back the stocks
of corporations that do owe money, and
l have ordered expansion in all the in
dustrial lines with which / am asso-
ciated.''
1t is this strength in the banking and
financial position of this country and the
improved political sentiment as respects
business that has been reflected of late
in the stock market.
The defeat of the government In the
shoe machinery case strengthened the
lated appreciation of the position of Beth
lehem Steel, as emphasized by its war or
ders, sent many electrical currents
through the speculative field. It's note
worthy jump past the 800 mark has
lighted anew the smouldering fires of
speculation, and as the committee of the
New York stock exchange has felt called
upon to point out, the public is making
the market and there is no control of
speculation within or without the ex-
change.
A Normal Market
That the market in Bethlehem Steel is
perfectly normal and that the stock Is
disappearing from the street. cannot be
gainsaid from any source.
In investigating this subject. all the
former large holders of Bethlehem Steel
have been heard from, and the only un-
solved problem from this investigation is
as to why SO many of the directors and
large stockholders of the company should
have parted with their stock at from 56
to 81.
More than one director sold his stock at
around these prices, and others declared
that If they had had any blocks they
would have sold at these prices
One of the largest stockholders says:
Yes, it is perfectly true. I carried Beth
lehem Steel in large blocks for 10 years
and closed out at ST.
Where Mr.. Schwab Stands
Mr.. Schwab tells his friends frank
ly that he Is glad to see the credit
of the company improved it's bonds
selling better; but that he is not a
seller of the stock and never will ne
seller until he sells it in its en-.
tirety; that should any interest APP
pear desiring control, they cannot get
1t in the stock market, but will have
to reckon with him.
1t is we'll understood that Mr.. Schwab
has for years held about one-half the
preferred stock and such a minority
of the common stock as would In or
binary course make 1t impossible for
any other interest to purchase control
IN the open market.
Mr. Schwab has worked without SAL
airy; has refused to be dominated or
have his policy controlled by anybody
else, and when the man who Is rrot-
ably today the second largest stock
holder in the company threatened to
bring suit to have the full dividends