Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-29
BULLS AND BEARS
Special Dispatch to The Star.

| NEW YORK, December 29.-On the theory
| that there has been great deal Of manipu-
| lation In the money market this month.
| theory that meets with favor not only In
| speculative quarters but In some well-in-
| formed and conservative financial circles
| as well, 1t would be possible to find some
| justification for the manipulation II far
seeing judges Of monetary conditions who
| are Interested In the stock market can be
| supposed to foresee relatively higher
| range for money In the next few months
| than the Wall street rank and flle has been
| expecting.
II such Is the prospect, 1t might be GOOD
speculative policy to establish temporarily
such money rate IN advance that an aver
| age of per cent or Whereabouts for call
| money in January and February would look
| cheap. 1t does not appear. however, that
| there Is any real reason to apprehend that
| early next month six months funds Will
not be obtainable at per cent or that call
| money will be much If any higher than
that.
| If the return flow of money from the
| west and south Is proportioned to the move
ment from this city that began in August
| and has continued to date carrying away
an unprecedented volume of cash. money
| would appear likely to be rather cheap here
| IL the first six months of next year. Usu-
ally the money that goes to the interior in
the late summer and through the fall comes
| back tn largely increased volume. Never
/ theless. with business as active as it is it
will not do to count on very easy money
| for speculative purposes.
| +
This is the only real call money market
in the country" says, a banker broker
"and New York pays for the privilege at
| times, as witness the excited and tremen-
| dous furries. Call money represents little
| put out and New York gets the bulk of
| these idle balances because its banks bid
| higher for them than other cities. paying
| from to per cent at least However, the
| point that l wished to make about the
New York call money market is that New
| fork's stock market is practically the only
one that affords sufficient protection to
, lenders on call.
| "In other cities so-caled call loans are
| made, but If there had to be anything like
| relatively as extensive a calling of loans
as takes place here from time to time a
| large percentage of the borrowers could
90 nothing more than assign their collat-
| eIal to the lenders who would have to
bide their time to realize on the securities"
ties"
|
When an individual depostor loans an
loan s25cco more than the bank which has
loan $1,000 more than the bank which has
| to keep % per cent reserve against deposit
! could put out This is one way in which
| the lendings directly for the account of the
| individual depositors has materially helped
the money market this week 1t has act
| ually brought more cash into play.
X
Commission house opinion on the specu-
latfve situation is well Illustrated by the
| following extract from the letter of Dick
| Bros. & Co. on yesterdays market:
nlyn,. NIL L.,
| most remarkable demonstration OF the
power of those interests and operators now
| engaged in bullng stocks. 1t also fur
! nished another convincing indication that
| stocks have not been distributed to specu-
| lators and that actual holders cont nue
! confident in spite of the exceedingly deli
cate money market situation. With the de-
| cline in the money rate there was hope
| that the stringency had been broken. If
| this is true the market is much safer AL
| though it must be remembered that a great
| many stocks were bought to support and
| to rally the market which will probably be
| sold again when conditions are more favor
able and the market better able to stand
| selling"
Not to mention ether distressing factors
| the stock market has this month endured
| the strain of the Russian situation on all
| securities and credit markets, the colIanse
| OF SIX banking institutions at home in
fortnight and 12o per cent call money.
A hint is heard in some quarters that il
Chicago accepts the 9O-cent gas proposition
| of the Peoples Gas Company. the dtvi
dend on Peoples Gas would not be reduced
| TO per cent. More conservative men are
| inclined 10 think that the dividend will be
| reduced for a short time to be restored TO
u per cent at no very distant day.
| dispatches from Mexico City saw that ths
Mexican Central has planned to do a large
| amount OF Improvement work on its differ
enr divisions In the coming year. 1t is
stated that the Guadalajara division be-
tween lrapuato and Guadalajara and the
neWeF extension south from Guadalajara to
| Iuxpam are to be relaid with seventy-five
pound steel rails and thoroughly baIiasted
Inc guif division between Monterey and
Ianplco is to be rebalasted. It is said
much other improvement work is r. he
zone on the road In order to bring Ito a.
hoehcy up to high standard
| st. Paul is tipped to sell over 200. The
presumption Is that the price will be war
ranted by the rates to accrue to the stocx
IN financing the Pacific coast extension, "
| SOLO at 1851 in 1902 the year when II f7rst
paid per cent in dividends
| -
Inc railroad Gazette today prints It's an
huai compilation Of receiverships for the
| year. Ten roads have become bankr,nt a
larger number than for the previous ten
years. They represent 100 miles of lines
ana over $l1o,OOO.OOO of capital This large
total Is almost entirely attributable to the
Cincinnati. Hamilton and Dayton receiver
snip, entainng total capitalization of
! about SAC. OO0. 600 and this bankruntcv u,os
not ON account of poor business, but on ac-
count or the creation of about $40 600 600 Of
| new debt "a
Other receiverships include the Pittsburg.
Shawmut and Northern. 200 miles; the Ohio
River and Western, Ill miles, and the
Pontiac. Oxford and Northern, 1O1 miles
| NO other road had 100 miles of line, The
new railroad construction for the year is
placed at 4.38S miles of new main track
| including SO miles of main track Reloaded
| but not including second track sidings or
! electric Lines. The greatest increase is in
| North Dakota. 500 miles; Texas next. 2a8.
illinois, third. $50. and Arkansas. fourth
| 200 ''''