The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-26
aOssIP on RALL srREEr.

In an unfayorable exhibit OF conditions: due
allowance evidently was not made for a
heavy reduction In loans as a result OF the
weeks stock market liquidation. The gen
eral market became buoyant Immediately
| after the bank statement but toward tho
close proat taking on long stocks about bal
anoed the short covering and the results
Of the days speculation were negative. Pro-
| fesslohal sentiment. perhaps. was somsw hat
more bearish after the close. most traders
espOuslnR the opinion that stocks should be
sold for turn on a strong opening Monday
morning. There IL still. however. an ex-
tended short interest In the market From
the tenor Of comment In beaTlsh quarters IL
may be guessed that q large proportion Of
the professional bear contingent overstAyed
the short side Of the market last week
The best buying seen last week was done
on q soale-doWn Brokers do not believe
that much new buying for the long account
followed the recovery, lncllninR rather to
the opinion that the good buying subsidized
on the advances and IL likely 10 be renewed
only on fresh recessions. The same au-
thorities expect the speculation to be some
what more narrow for while. with bullish
operations confined largely 70 special stocks.
Further activity IL predicted on the long
side Of certain industrial specialtios.
The most aggressive buying anywhere in
the railroad list yesterday converEed upon
Southern Pacific. which enjoyed an advance
OF ~ per cent. In the last half hour, how
ever. with the general market more buoyant
Southern Paclfc's advance was arrested.
Wolf Bros. and Rutter Gross were the most
prominent buYerG No explanation Of the
movement was heard. Advances in various
stocks were checked By the freedom with
which stocks we're supplied. One very proml-
minent house, for example, supplied 1900
shares Of Steel common. checking the recovery
In that stock. There was also some very active
realizing in T. c. |.
Traders who have been following the tape
on Union Pacific confess that the fluctuations
OF the stock are extremely confusing. There
will be every indication that stock has been
very freely supplied on a certain price level.
and on such indications the trading element
will get on top OF the market only 10 discover
that appearances have been deceptive; again
there win be all the signs by which traders
recognize strong buying. but the technical
indications are equally deceptive on that
side. Only those who have sat still In Union
Pacific have made big money out OF It. The
element that has been tradln g In and out on
the tape has been more often wrong than
right on the little swings or Of points.
The traders. In fact. have served the useful
purpose of making q tremendous market
themselves in It, On the level OF $50 In Fri
days session the stock invited heavy profess
sional selling. and II was the same yesterday
around 1871. where II seemed ~ II q block OF
LONG stock had been put upon the market
AfterWard the price advanced 70 isiH.
The point Of view Of the professional trader
who. without necessarily being ignorant Of
values. may ignore them because he deals
exclusively In fluctuations. IL WOl stated
by one who was successful In turning from
the bull TO the bear side Of the market at the |
extreme top. The big men," be says need |
big water TO turn IN. We are the tu Eboats !
and our drauGht u light. II is not our money
that they want. We merely tail on. There |
is q two-point break and We are out. We |
have gone along here for g year and have |
had . tremendous speculation. and the water |
has got big and deep. A lot Of people have |
made large profits and are out and feel very |
smart about IT, 1 ind such people every
where. One has made 600. 900 and has put
twice that much and has hkewise put Il away |
Others have made Lesser and others greater
amounts, and they are all out and waiting
What are they waiting fort A good break
on which they may set In again. Now.
what would you call a good break7 Would
10 points be . good breskl Let US say we
have q break Of IS points; that would bring
then. should say. they are likely 70 be landed
with the stocks. That is the kind OF money
the big men are after. The money we make
is different, We don't stand for big losses.
The other people do. When you stop 10 think
that the big men have carried prices up
20 and 90 points, you will see that they can
afford TO sell either at these prices or a great
deal lower. They serve the cards to make
the stocks look very strong when they are
selling. and II you sell with them. divininE
what they are az. you are likely 10 get an
awful headache. but II you can only stick TO
II and keep selling on q scale-up you will
make q terrible lot OF money. A lot OF the
big outsiders who have made 30 much money
In this market are going to be landed with
stocks In the end. They may be out now.
~ say. and may feel that they have beaten
the game. but they viii come back and buy
more. The big men are letting the little
pools play on this level They always do
that. IL helps TO keep the game big. When
prices are down. though, you don't hear
70 much Of the little pools. They interfere
then with the operations Of the big interests
md are discouraged"
A correspondent inquiries why there should
be any price disparity between the old Leather
,ommon and the trust company certificates
representing deposited stock. This dis
parity at time has amounted 70 more than
* per cent, An imaginary value seems al
Ways 20 attach - unassented stock over |
he assented In reconciliation proceedings.
That is the only way In which brokers Ao-
count for such disparities. II would be pos
Ible 10 cay In some Instances that tho un-
,ssented shares were being bought In the
,pen market 70 be deposited, but In the case
Il Leather common at the present time
transactions from day 70 day are Of very
mall volume, There 10 rather more activity
n the trust certificates. There has been some
harp aToitragin between the new Leather
common, which IL traded In on the curb In
he form when issued and the old Leather
took. ,
Occasionally In every stock brokers' once
here will appear from somewhere outside
man who has had faith enough in his country
o buy stocks when they we're thought 20 be I
worthless and 20 hold them through panics {
nd depresslons until they have become
Ugh priced investment securities which
nybody IL glad to take on his hands. This ,
,rodlgy Is never a Spectator in the familiar
meaning Of that term. When he comes in 7
nth his stock TO sell II and buy something
lse he does not hAERle over eiRhths and {
uarters. He has come to Wall Street TO do {
omething and he does IL, and while he Ia :
-aitlng he IL exhibited 70 the traders in that S
nice AZ A man Of unusual good fortune /