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Show SPECULATION 16 GOVERNED BT MILITARY DEVELOPMENTS Decline of Stocks Brings in Buying Orders for Odd Lots; Bond Market Lags; Railroad Rate Decision Is Important. By W. S. COUSINS, Editor The American Banker. N. EW YORK, Nov. IT. The 1 speculative markets are keeping time with military developments, and shrewd' participators In stock market movements are gauging their activities in strict accordance with the signs of rise or fall of our fortunes on European battlefields. Thus when. In the latter part of last week, the Bolshe-viki Bolshe-viki uprising in Russia seemed to be a formidable menace to the allies' cause, prime securities tumbled in confusion. But when the true condition of affairs in unhappy Russia was fully known, and the decisive co-operation of the French and British apparently halted the Teuton drive Into Jtalv, Wall street breathed easier, eas-ier, and a better feeling was reflected in the securitv price lists. It is difficult to say whether a further relaxation in prices will he seen in good securities during the coming months. Most of tho financial experts have been saying, fur Ive weeks or more, that prices hud touched "bottom." But each such prediction was followed by a demonstration dem-onstration of tho ability of those same securities to go from the ground door to the cellar, and from the cellar to the sub-cellar. A great deal of conlidence Is felt in the ability of the allies to reinforce re-inforce the Italian defensive in time to hold Mackensen's army In check. The weakness of tbe Russian revolutionary forces is apparently much greater than anyone, had expected, and the Indications that Kerensky may be able to rally the array behind him have been the best features fea-tures for turning the tide in "Wall street. Meanwhile, the magnitude of America's problem has In no way diminished, though the evident desire of all classes and conditions of people to co-operate and "do their bit" should greatly lessen the pro rata share of the burden for those who so freely volunteer their "life and riches" for the good of humanity. It is significant that the public uttev-! uttev-! ances of President Wilson and Premier ! Eloyd George during the past week simultaneously promulgate the same doc- trine with regard to the conduct of the ! war and the hope for a permanent peace. ; Each appealed for solidarity and unity of j resources for a quick and hard blow j against a common enemy, and to refuse : all consideration of a peace that would be a "peace for not more than a few mtn-1 mtn-1 utes," Bonds Are Improving. One of the features of this week's financial markets has been the improvement improve-ment in bond prices, especially in the hands of tho governments of our allies-Emphasis allies-Emphasis has already been placed. In this review, upon the desirability of these bonds from a strictly investment standpoint, stand-point, and there Is evidence of an increasing in-creasing demand for them. The bonds of the French cities of Lyons, Marseilles and Bordeaux, which in recent weeks so declined - that their market prices were equivalent to a H per cent Investment, haye been slowly "coming back." The new 4 per cent government bonds have gone slightly below par, and the 38 are down three-quarters of a point. Since the latter ure transferable without expense into the former, it is plain that the difference in price is one of sentiment and not of reality. Along with the pronounced slump on the stock exchange there has come into the market a flood of odd-lot orders from investors everywhere of moderate accumulations. accu-mulations. Hoarded monev. taken from strong boxes, savings banks and faxnllv stockinga has made its appearance iii enormous volume. This happening is not uncommon In times of financial crises. In fact, there has not been a stock market panic. In the past twenty years which has not been marked by buying in large volume vol-ume of this character. Members of the New York stock exchange who, urtdnr the more liberal methods permitted by the boarrl of governors during the- past few years, have been advertising in the newspapers news-papers throughout the countrv soliciting business, report more odd-lot buving sine Steel common recently broke to around $92 per share than at any period since the days Immediately preceding the closing clos-ing down of the stock exchange on July 30, 1914. at the time war was declared by the European powers. New Public Reckoning. j It may be said, however, that with the ' appearance in droves of small-size in- 1 vestors In the market there has come a new public reckoning. Stock exchange houses and houses of repute which center tlx e Ir act 1 v i f i es in the New York curb market, report that the odd-lot buying on the stock exchange at this time is almost al-most evenly divided T.ith an unending stream of orders which are pouring Into all of the brokerage offices for popular price curb mining stocks. Timo was. not so very long ago, when the New York curb marlfet was an arena used for mining stock wildcatting operations. opera-tions. The .public was usually stung and stung badly. It was just ten years a.go that the first big New York mining stock boom started. In those days Nipinsing was the market leader. The price of this silver stock was ballooned from around $3 per share to above $20. On the strength of this great rise scores of wildcat wild-cat mining propositions were quickly groomed and marketed on the curb. When a, little later Nipisslng cracked wdde open from above $.30 a share to below ?6, the bubble was prh'ked and the whole popular price mining shares list came down with a thud, bringing gloom into the familips of tens of thousands who had followed tho deceiving light. There have been will-o'-the-wisps on the curb since then, but it is a fact that within the past several sev-eral years Uia action of the curb authorities authori-ties themselves and. more important, the education of tho investing public, has resulted In a purification of the curb market. mar-ket. Today it is generally- conceded bv the most conservative hanking and brnk-eracrp brnk-eracrp interests In the financial district that the curb market is just as reliable as tlp. stock exchange market itself, and that the day of the wildcatter is no more. Center on Cheap Slock. Na t u ra 11 y enough, buying by th e in-, vest or of small accumulations has centered cen-tered on the stock exchange in the low price stocks, such as Kansas City Southern, South-ern, Erie common. Cora Product., Sen -board Air Line. Chile Copper, Nevada Consolidated, Butte &i Superior. Willys-Overland, Willys-Overland, and others of this kind that a re selling at. under 50 a share. On the curb tho pvn lovror price metal mln- ing issues arc hdng eagerly bought at big price concessions. The most act Ive in this group and most steadily absorbed In the present buying movement are Hecia Mining, selling a t around $4 a share and paying dividends of 60 cents per share per annum; Emma Consolidated, Consoli-dated, which owns a bonanza silver mine at Alta, Utah, which produced many millions mil-lions In the early 70's and under a, new ra of development is rapidly gaining highest mining rank, selling at around 62U;o pr-r share: National Leasing, selling at. Ii' cents a fdiare, representing a "prospect" "pros-pect" situated next to the fa mous National Na-tional mine at National, New, which produced pro-duced 57.noO.uOQ of gold, and a. number num-ber of others. The popularity of these low price mining Issues is explained by the fact that usually when they sell at above 10 cents or lr cents a share they represent either a mlne-in-the-making or an actual dividend payer and that besides having important intrinsic value, they en-jnv en-jnv measurable speculative value. It wph only a yar ago that the New York curb rc-glst f red 1 b snsa tional rise in the mining stock known as Unitrd Verde Extension, Ex-tension, from around ;;o cents a share t1 abni-e ?!;.. The I.'nlted Verde Extension N now rctui)hy pa vine dividends at th rate of per pnarf per annum and it i: , said has already blocked out sufficient 1 ore to warrant the belief that dividends i of this si Be can be paid for thirty years. I It is a matter of history that every one I of the rich dividend paying copper mining min-ing properties that are now listed on the stock exchange first found its market on the New York curb. Prices which rule now on the stock exchange. In the much depressed market, are on an average av-erage 1000 per cent above the quotations that prevailed when the stocks in question ques-tion enjoyed their first activity in the curb market. The small-size investor remembers re-members this, and in doing his barga in buying in times of a market crisis pays heed to the curb's popular price mining shares list. Railway Rate Hearing. The principal points which have been emphasized by the so-called railroad rate hearing before, the interstate commerce commission during the past week are thf increasing gross, but decreasing net earnings earn-ings of the American railroads In recent mont hs. Reports from 17." roads, com- j piled this week by the statisticians of j x he commerce commission, showed that only a few of the smaller southern lines made net increases.. Net revenues for the 1 7.H roads were 51lC,Sbi),310, as compared with 117,503,174 a vear ago. Operating revenues were $347,121,273, about $32.0n0.-000 $32.0n0.-000 more than last year, and operating expenses were $236,240,962, about $39,000,-000 $39,000,-000 more than a year ago. For the nine months ending with September net revenues reve-nues showed a decrease of $13,000,000 from last year, being $S59,lS3,OOS, as compared com-pared with JS72,736,331 in 191(i. Eastern roads, whose application for higher rates is now pending before the interstate commerce commission, reported net revenues in September of $43,850,722, as compared with $47,024,265 last year. 1 Gross revenues were S14,39,40S and ex- 1 ponses 5110,543. 6S6. Western roads, which have taken steps , to re-enter the rate increase case, reported re-ported net revenues of $50,607,503, as compared com-pared with $55,426,614 last year. Operating Operat-ing revenues were $140,972,454 and expenses ex-penses $90,364,951. Southern roads report net revenues of $16,422,085 for September this year, as compared with $15,052,595 last year. Operating Op-erating revenues were $51,754,410 and expenses ex-penses $35,332,325. |