Evening star., 1905-09-06
BULLS AND BEARS

Special Dispatch to The star.
NEW YORK. September 6.-Bankers are
far from averse to proiltably higher rates
for money. Some OF them even have their
doubtful fears II the money market VIII
be materially harder for any very profit-
able length of time. These views OF the SIT
aafion are held with due regard to the out
look for securities In (which banks FUNDS
have been SO heavily loaned. The stock
market situation and prospects are consid-
cred In banking quarters to be sufficientiy
sound and promising to initiate In no way
against giving the money lenders a season
Of prosperity.
GeerFe RutIedge Gibson. who retired from
an active share in Wall street affairs some
years ago. said today concerning stocks:
The bear position appears to be based
mainly on the money market. on the theory
that the demand for funds to move the
crops will deprive Wall street Of its credit
ammunition and that enforced liquidation
must ensue irrespective OF fundamentally
builish conditions. 1t seems to me that
the believers In this theory forget the for
eign monetary situation as related to US.
II had been conceded by almost every one
In nnancial circles that the war would go
on. with additional loans by both COM
batants. or that peace would be agreed
upon with q war indemnity OF some sort by
Russia The result OF the Portsmouth con-
terence is that neither supposition was cor
rect The war ceases without any indem-
nifty and therefore all the prolonged and
important provisions in foreign financial
centers. particularly in Paris, for the financ-
ing OF such loans Is not Immediately neces-
sary. The fund of cash and credit thus
accumulated will not be called upon at once
TO take care OF the finances Of either ma
tion' whatever may be its obligations
few months hence
This loanable fund will not wish to re-
main unemployed, and as borrowers of no
country In the world will be able to give
better security for loans this autumn than
the United States 1t follows that II to sus-
tam and advance our stock market and to
move our crops It should be necessary to
reinforce our bank reserves by an addition
OF actual cash for the autumn there will be
no difHculty whatever In getting gold from
abroad at moderate rates to tide over this
period OF national monetary activity. That
Russia could get all It wanted In case of
peace and an fndemnity-not now needed
fund provided for that purpose is toe pre-
/ pOsterous to consider. Our monetary sys-
TEN and our cOllaterals place all the for
eign surplus funds at our command
The tendency to higher discount rates
abroad Is not yet strong enough to indicate
that foreign credit supplies will become less
available here In the near future than they
have been or are now, and the chance of
gold imports later Is not affected.
Negotiations are said to be on foot for
the merger Of tho Wharton furnaces and
IRON ore properties the Empire Iron and
Steel Company. the Warwick Iron Company
and possibly the Passaic Steel Company.
The new company will involve a capitaliza-
ton OF from $25.0 600. 900 to $30.oOO.O00. It
has been understood that the Bethlehem
Steel Company has been negotiating for
the Wharton property.
When Wall street opinion IS two-sided. as
now. there seems to be no reason to expect
an important decline in the stock market.
If anything sentiment and opinion are bear
ish on balance-at least the weight of pro-
fessional sentiment Is against prices and
as professional sentiment Is always loud in
expression and aggressive in action 1t Is
likely to give the impression that all Wall
street is looking Its way.
"If ever a stock appeared to be cornered.''
said one of the shrewdest room traders this
morning, Reading does. mean cornered
in right way through complete control Of
the available supply of short interest that
One OF the original bulls on Reading said
yesterday:
"We are not asking everybody to buy the
stock" The same complete control OF sup
ply is, although perhaps less conspfcuously
50. a characteristic of the bull parties tn
other issues such as Atchisou and Erie.
There Is hardly any doubt that H. H.
Rogers Is behind the tidewater railroad
that promises considerable competition for
Norfolk and Western and to q lesser extent
for the Chesapeake and Ohio.