Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-19
BULLS AND BEARS.


vast preponderance of professionalism in
the market. 1t is the view of a heavy bank
ing house operator that the more profession
al the market the safer 1t is "You can
never tell what Is going to happen when
the big public gets in he says.
1T Is to be expected that the crop-re-
quirement strain on the local money mar
ket will be proportioned to the bumper
harvest begun in prospect. The course
of the foreign exchange will be important
to watch as the money market hardens
here, for it is likely to indicate the ability
OF foreign lenders to supply cases or credit
to this side whether gold is to be ex-
ported.
There are not a few careful observers who
expect sharp reaction in the stock market
IL q Japanese Russian peace Is concluded. or
when it Is concluded. because of the tighter
money markets that are likely to ensue tor
a time Ultimately peace will be powerful
bun argument, but. on the contingency OF
peace. gold exports are already being talked
OF. Washington dispatches say that the
probability of gold exports for Japanese and
Russian account is already being discussed.
Besides. 1t Is figured that an international
dislodgment OF securities will be effected by
the borrowings of both nations
Fluctuations in foreign exchange during
lively narrow limits, the high and low
points for sterling having been no more
than ten points apart Last week Friday
demand sterling closed at 4S4a4. S4%.
From the end of last week UP TO Thursday
morning the actual market for demand
sterling was between I86ca4 S6A On
Thursday some rather heavy buying. partly
Of a speculative nature. caused an advance
In the raise of points which was lost yes
terGay when the market reacted slightly
M rIne sd lnru-a nf 4 sfSnA n nd
and at about 4.S4 for sixty day bills. The
changes in rates for the week were of
comparatively insignificant nature, result
ing in net decline of ten points in demand
sterling. Continental exchange was rela-
lively firmer: than sterling, both francs and
marks showing slight gain on the weeks
operation.
, According to the chrenicle, the total
hank cIearings of the United States for the
week ending today were s.. 491 .'597 .I20. an
increase of s1.SIo ,29l. Jas over the same
week last year. or 3D. per cent.
Atwood Violet & Co. in their weekly re-
view, say:
1T is a reasonable criticism OF the stock
market to say that prices look high COM
pared with those prevailing a year ago
Some have doubled in price. while others
SHOW Only Il mOueTdle adVdECt.. LIE reply
is that prices year ago were. quite too low,
the pendulum having swung too far to the
bad: that all profit-making properties
should be worth more than year ago:
that there is a better understa nding of ac-
tual values. particularly of coal proper
ties; that the value of gold is less. which
Of itself makes prices higher.
ITO the speculator altogether different
considerations must be taken up The only
question is the immediate direction of
prices We are in bull market pure and
simple, with many evidences that 1t will
become wide and wild Such markets are
usually of considerable duration. Wonder
full prosperity seems assured for the next
nine months at least. and while selling for
fall Will prove profitable from time to
time. specuating for rise should be the
favored play for an indefinite time to come.
A reaction of a few points Is overdue. We
still believe the object for which the peace
commissioners convened will be accom-
plished. There Will doubt be many
gloomy days before its finality
The Weekly Financial Review of ]. S.
Bache & Co. says:
The week just closed has been a remark
able one in that on three days prices estab
lished new high level marks In our financial
history. A large and increasing public de-
mand for stocks has become the dominant
factor In the situation, overshadowing a
feeling OF uncertainty in regard to the peace
negotiations and in magnitude. large enough
to absorb profit taking sales, realizing by
investors who bought at lower level and
short selling by professionals.
"Rumors of heavy distribution of stocks
by banking interests lack confirmation. The
Morgan following is bullish and looking for
a higher level Of prices. Hartman interests
said to have added largely to their enor-
nous holding of Union Pacific, and some
very good buying Of Union Pacific during
the past week was ascribed to the Hill
party.
THE active Rock Island crowd are report
ed to be again in the market on the bull
side. There was undoubtedly profit taking
during the week. but it is very doubtful il
large bankers have yet begun to distribute
stocks. The week closed with prices firm at
net advances of SO for the industriaIs and
1.2T for the active railroad shares.
The situation has changed somewhat
during the week. The outlook for peace Is
said to be rather less optimistic but con-
hdently believe treaty of peace will be
concluded. Market operators await the out
come OF negotiations before making fresh
commitments. On the other hand the pub
lie demand for securities is factor that
until the past week has alone been lacking
to make a bull market comparable in ac-
tiyity to that of three years ago.
Other factors In the situation are un-
changed. The iron and steel trade outlook
Is better than ever before and activity
again rules in finished steel. Bumper crops
are assured. Money is easy and will proba-
bly, advance to over per cent this year.
STOCKS are stiii In strong hands and are
being held for higher level of prices"
X
Commission house literature continues
considerably bulltsh on balances
Dick Bros. & Co. say: I'VE have recently
been pointing out the certainty of some re-
action in the market 1t has been DELAYED
by manipulation. which at the same time
made 1t all the more certain and necessary.
we think the decline will strengthen the
markets position and afford opportunities
for purchases OF the we'll established
stocks"