Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-16
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. November 18.-There Is
| moro difficulty In the money and securities
| markets than a frightened supply of credits.
There Is a struggle going that has
cropped out in Wall street In one form or
another In recent years. a struggle that Is
not only a contest OF individuals and their
allies. but clash of policies all involved In
the efforts of a not too scrupulously ambi.
tious group Of Industrial railroad and bank
ing capitalists for domination of the money
and securities markets. with consequent
supremacy in the railroad and Industrial
world. and the resistance offered to their
schemes by a sturdy and resourceful party
which Is. to large extent. fighting battle
for independence In trade and finance.
The antithesis is too striking TO be wholly
true as here set forth. but that there is a
broad division of connecting interests and
aims in the financial community Is not open
10 question A hint as to what Is going on
under the surface of things Is afforded by
the following extract from a commission
house letter OF the week: 1T is curious
that actual bulliShness prevails In the face
of deficit recorded in last Saturdays bank
statement, with the possibility of continued
high money rates, the existence of pools
| more less overloaded, and the Ill con-
cealed antagonism of two very prominent
groups of financiers.
1T is true that basic conditions were never
so strong, that business Is excellent and
prosperity In sight for the coming year.
but stocks are at a very high level, money
lis actually tight, with the possibility of a
stringency, and speculation has run riot In
individual stocks. 1t may not be unwise
to repeat that this is period when con-
seryatisn is likely to return large dividends
10 those who possess 1t. The technical po-
sition of the market may or may not be
good, but the fact remains that a money
panic has not yet been eliminated as a pos
sibility
The ease In money during the past day
or TWO has resulted from the loaning OF
foreign moneys. Money has not begun to
return from the interior yet, and the chances
are that 1t will not be flowing back in vol
ume for several weeks.
The deficit will not be made up this
week, ana for the present at least we be-
leTe that Conservative attitude toward
the market Is the most logical. Secretary
SHAW has not committed himself to any
particular policy. Local bankers are dis
posed to advise him against making any
deposits at the present time
So thoroughly has Wall streets opinion
as to the size of this years cotton crop
been confused that despair over the ability
of the south to tell the truth about Its
staple product is one of the humorous
phases Of the cotton speculation that has
come TO play so large a part in the busI-
ness of stock exchange houses. The man.
aser OF the cotton department of one stock
exchange firm travelled through the south
for several weeks last spring collecting
facts and opinions about the seasons crop
He was royalty entertained, made many de-
iightful acauaintances and came back a
huge bull on the crop, which he was con-
WINGED was to be very short. All through
the summer and up to a month and a halt
ago the information that came to him from
the south kept him confirmed in his atti-
tude. but he began to waver at last
From doubt he changed to conviction that
the crop was Of good size after all. and a
night or two ago he courted sudden death
by saying to party of southerners at an
uptown hostelry: about six weeks back
l was willing to admit that 800 999 men out
of every 100000 In the south who are in
terested in cotton one way or another
would lie about the size of the crop. but |
insisted that the rest would tell the truth
Now I'll be hanged IL 1 don't believe that
he has Topped"
View Of the stock market situation
that Is Endorsed in many good quarters is
expressed by Dick Bros. & Co, who say:
I'm response to the apparent Improvement
in the money situation, the stock market
has now had a very fair recovery and the
buying which has advanced prices during
tirement>of the short interest and the re-
sumption Of professional bullish opera
tions which only serve to put the technical
position of the market as 1t was before
tight money caused the break.
We cannot advise purchases on this
rally, and we are inclined to believe that
stocks sold on any further bulge may later
be taken back at lower prices. After the
shakedown which the market has had, con-
sentative spectators will wait for
period of quiet and dizziness before buying.
even though they may believe that money
market difficulties are over"
What some well-informed Wall street men
would like to know is II Secretary Shaws
practical refusal to extend this week to the
money markets of the country the aid that
the treasury could afford, for his pat" po-
sition has amounted to such refusal, has
in any way assisted any plans of any finan-
ciers to get or hold control of the money
market, and SO to give or increase control
over the securities market.
FOREIGN BANK BUSINESS.