The Birmingham age-herald., 1917-11-17
CAUSE OF DECLINE
 IN BIG SECURITIES
By HOLLAND

1 By HOLLAND
 | New York, November 16.-(Special.)-It ! is one of the queer phenomena, of which there have been many in the se-
 curities market for a year or more,
 that this market seems to be instantly
 affected by reports which come from
 Russia, one day marking up quotations
 for securities because there seemed to be
 a brighter outlook in Russia and the
 next day marking quotations down. 1 thereby reflecting anxiety caused by
 what seems to be unfavorable news from 1 Russia.
 At the same time the ablest banking
 authorities here and elsewhere, and, it 1 is understood, some of the leaders in the
 administration at Washington, have not
 wayered in their belief that Russia is
 only passing through an inevitable time
 of turmoil and readjustnfent but will ultimately find herself and at last estab- 1 fish as France did in 1871, after the an- l archy of the Commune, stable govern | ment.
 l For instance, when some days ago the securities market was greatly depressed 1 because of very unfavorable reports
 
 Lamont of J. P. Morgan and company
 spoke for publication in encouraging words, voicing what seems to be the sen 1 timent of those who are looked upon as 1 leading bankers with respect to the fav- orable outcome by and by of the Russian situation. So also Henry F. Davison, who has been lent to the people by J. 1 F. Morgan and company so that he may i perfect and adequate Red Cross organi- zation, spoke in words of encouragement respecting the Russian situation, clearly intimating his belief that Russia Is slow 1 ly, with difficulty and yet surely, finding her way to a stable government. The administration at Washington ap- lpears to be persuaded that Russia is not lost The great orders which have come from Russia for supplies of various kinds and for railroad equipment are not to be cancelled nor will the treasury depart nent turn it's back on applications which may hereafter come from Russia for fi- napcial assistance.
 Yet in spite of the view of men who know whereof they spek and whose judg- nent is entitled to careful consideration, holders of securities are persuaded ey- cry time some what unfavorable news is received from Russia to sell their secur- ities at depreciating prices.
 1 There seems to be no doubt that real values, far exceeding those which may be represented by market quotations are l to be found in American industrial prop ! ertles of all kinds. One security not l long ago found market at nearly 200 and was quoted the other day at 1O5 This is regarded as absurdly dispropor- I donate to the, real value which is in this i property. The business it is doing is CO., l lossal. The corporation has been able 1 to concentrate its attention upon many commodities of which the government
 <l r...s-- profits and it's future is assured when peace comes. Yet some of the holders of the stock in this corporation ,ap- parently being frightened, have been willing to sell it at constantly depre- ciatins prices until at last it is only a lit- tie above par.
 U. s. STEEL CORPORATION It IS evident that the managers of the United States Steel corporation have abundant confidence in the strength of the corporation and in its ability to
 maintain it's very highly speed-up pro- auction until after the war. Then when peace comes the steel corporation will be greatly occupied with the manufac- ture of various commodities needed in the United States and especially in Eu- rope where there must be enormous urbuiiding of industrial plants and re- construction of railroads. Yet by req son of fright and the apprehension that the situation in Russia is to be so chao- tic that true anarchy will prevail there
 .a long time. Many persons who pos sessed common stock of this corpora- ation have marketed their shares in such amounts that now the stock is quoted some points below par. Those who are quallfied to judge are convinced that the quotations recently made in the se-
 curlties market for the common stock of the Steel corporation are simply ab- surdly low and that there is lkaaly greater value in the property today than avo -'NN--