Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-05
AND BEARS

NEW YORK, December Bond dealers
! hoped that the harder money market that
| set In last month would dislodge some high
grade investments with which to do good
business this winter. Banking houses can
| yassed the country with that end In view,
but with insignificant results. For more
than year the manufacture OF new Sc
| curities has been at minimum and the bond
| houses are almost without the kind OF
wares that they like best to offer. For
year and half there has been steady
absorption Of gilt-edged bonds by banks
and trust companies outside this city, a
| sign of the times which Is of great import
| ance, but what Is of even greater import
1 ance Is that these purchases have not
| pressed forward to sell at the advanced
prices that have been obtained
| This Is all the more remarkable when ona
considers the demand for money at high
| rates of interest that developed this fall.
! One can only conclude that the banking In
! stitutions everywhere in the country are
confident Of the soundness of the prosper
| Gus conditions that prevail. 1t looks also
/ as though the speculative bond issues So
| called were likely to have lively market
| in the next few months.
|
considerable short interest should de-
! velop In the stock market this month.
| Rather extensive commitments for a fall in
prices are likely to be made toward the end
| of November and early in December in an
ticipation of the decline that frequently oc-
ours In the last month of the year. In De-
| cember there is usually an unloading of
| SpecClat tive securities held by banks, trust
companies and The like and a dumping out
! Of taxable issues
| These are to an extent replaced in the
last ten days of December with gilt-edsed
stuff and non-taxable securities, an opera
| ton that partly accounts for the rise in
prices that is generally observable between
December 20 and December 81. Other win
dow dressing processes. continue. with hard
! er money rates, to exert some. pressure on
the stock market in the first three weeks,
and the opening of Congress is frequently
an unsettling factor.
l. =
Altogether, professional operators are
likely to be short Of the market this month.
rather than long, and signs are not wanting
| that this Is the situation now. The daily
| borrowing demand for stocks IS good. and
| II this short interest Is nursed along and
| increased the markets position may be very
good as the year ends, when additional aid
| Is likely to come from the quantity of calls
| sold by London option dealers in American
| stocks, maturing. 1t has been said that
| there have been enormous purchases OF
| calls for New York account and that good
prices have been paid for these privileges.
Commission houses were Inclined this
| morning to take a more cheerful view CT
| the speculative situation after the remar X
1 able demonstration of strength which the
market made yesterday under adverse con-
| ditfons. 1t would be wrong to say that
they have departed from counssls OF con-
| Seryatism, but more reas5urng tone was
| evident In commission house literature.
|
A. o. Brown & Co. said: Unless the west
| ward movement of money soon ceases, an
| other deficit in the reserves is feared this
| week. The pools are consequently not dis
| posed to do more than support their special
| ties until the monetary outlook improves.
| Sentiment is generally. bullsh for the long
! pull as 1t is hoped that the market will be
| able to Withstand another possible furry in
| money rates as 1t withstood the last"
Bartlett. Frazier & Darlington said: ''Of
| course the money market is not out of the
| woods yet, but money will soon begin to
! return from the interior. There may be a
| short period of comparatively high money
| rates. but there is not likely to be any eX-
| tended period Of actual stringency. So far
| as can be determined there is a consider
| able short interest in the market, and it is
! unlikely that the long accounts in broker
| age offices are extended This makes the
technical position of the market relatively
| good
Dick Bros & Co. expressed this view:
I'VE look for further irregular movement
] in prices. although if the presidential mes
! sage is not unfavorable some new buliish
| demonstration may be made. But the crit
| ical Russian situation and the slender re-
| of the hanks n a time W hon
| demands are impending urge conservatism
| in making speculative commitments.
| X y
! Men In the steel trade are figuring on net
earnings in the nelghborhood of $4,000 600
| for the steel corporation in this quarter.
| There is reason for believing that some
thing like 10000 shares of Tennessee Coal.
or about So per cent of the total outs.and-
ing. are now held by one stock exchange
house for a group of men wnlca can hardly
| be called 4 syndicate. but does represent
| new control so far as that can re conferred
| by actual possession of a majority of the
| common stock. Furthermore this coterie
/ has, it is said. contracts for about 10000
| shares more, SO that short selling would
seem to be a perilious business. Apparently
the original intention of the new purcn isers
was TO acquire control and develop the prop
| erty themselves, but 1t Is understood ih,st
| subsequently it was proposed to make some
| kind of deal or merger. . The attitude OF
| President Woodward OF the Hanover Bank
| is Of decided Importance, 1t Is believed, for
| his ownership of the small amount Of IRE
! ferred stock outstanding places him in a
very influential position in the company
|
| II
| Regarding the southern iron trade sltua-
ton. Rogers. Brown & Co. say: THE week
1 under review brings to light the fact that
| important interests. among the number
some heavy consumers have nor covered for
| their requirements Of pig iron beyond this
year, and some of these interest,", are now
| anxious to buy at prices at which they
| could have bought two weeks ago. The
run of orders during the past two weeks has
| absorbed the tonnage that was Offering and
| al the present time. as far as can be laaraed.
| there is very little tonnage thiL. can be mad
| rrrDnT1rn nr---~