Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-28
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK. September 2s-Money. or
rather credit, h Ia demand the world over.
and is worth more than a few months ago.
or course. much IL owing to the require
ments OF the great war just ended. and
more will be owing to the requirements
which must be made as consequence of
the war. At the same time there is an In
dustrial expansion going on throughout the
world which. while 1t furnishes In itself n
bull argument Of securities. is likely to
have occasional unpleasant effects when
there Is conveyance OF monetary re-
quirements on this or that banking center.
The advance in discount rates abroad tes-
| titles to the increased demand for money
for all purposes and the advance of per
cent in the Bank of England's discount
rate today Is not solely a measure to pro-
tect the banks Colds supplies. although the
proportion of its reserve to liabilities has
fallen to 4O.O3 per cent, compared with
44S1 per cent last week and 5S.s5 per cent
last year. This is the first time, by the
way, in more than two years that the
bank rate has reached per cent.
Advancing the bank rate in London is not
necessarily an effective barrier to gold ex-
ports. II centers requiring gold, as New
York does at the present time, raise their
bids gold is apt to continue to come. al
though 1t is intimated now that our demand
for the yellow metal may be shifted from
London to Paris. as the chief source of sup
ply outside OF shipments from Australia and
South Africa direct. That New York is like
~ to raise its bid for gold Is indicated by
the heavy pressure on this city for cash and
credit supplies.
Commenting on money and stock market
prospects. Bartlett Frazier & Darlington
say: This week will be more or less crit
ical so far as the money market is con-
cerned. and we should not be at all sur
prised II there was quite a furry In call
be due, Of course, primarily to the ap-
preaching disbursements incident to the
first of the month. We are not disposed to
take pessimistic view of the money mar
ket, but 1t Is obvious that 1t will be more or
less unsettled for a week or 50.
The preliminary indications Tor tnls
week s bank statement are not at all nope
ful but we venture to say that It VIII not
be essentially bad. The operations with
the subtreasury have resulted in COM
paratiyely large loss to the banks and the
interior movement is not likely to neutral
ize this losss The loan item, however. may
furnish the necessary decrease to preserve
the surplus reserve practically unchanged
General conditions, aside from the money
markets, are excellent, and Ii the spectef
OF tight money could be eliminated. we be-
lieve that bull market would result.
Furthermore. we believe that the money
market will SO shape itself in a short time
that higher prices for stocks will follow
quickly.
Dick Bros & Co. say on the same subject:
within week the critical period for the
money market will have passed, and oper-
ations for the bull account in stocks may
then be conducted with more safety. and
with less fear OF disturbing the money
market situation"
European banking centers are busily en-
gagged in discussing and preparing for the
first peace borrowing by Russia. Germany,
France and this country are expected to
participate in it. The initial hotation is
spoken of as likely to amount to $f50,000,000,
to bear interest at AZ per cent and to be
offered to the public at not much below
par. 1t Is believed that the payment OF
subscriptions will be extended over a con-
siderable interval. SO as to involve the least
possible arrangement to the worlds money
market.
Secretary Shaw has announced that on
October next the treasury will resume re-
funding operations under the act of March,
1900 receiving per cent bonds of the fund
ed loan of 1907 and per cent bonds of the
loan of 190S-191S, at a. valuation equal to
their present worth. to yield an annual in
come of "a per cent and issuing in place
thereof per cent bonds. consols Of 1890. at
10l. subject to discontinuance at any time
without notice.
The Secretary states that his purpose IS
not to stimulate circulation. but to grad
ually reduce the amount Indebtedness
maturing in 1907 and 1998 he deeming 1t
better to get some of the indebtedness out
Of the way before any great volume OF
isthmian canal bonds are issued. The
amount of bonds subject to the provision
of the new refunding circular Is about
s156. 100000 of Is and about SIT 000. 900 of ?s.
The price at which refunding bonds were
put out last was 1902. and Mr.. Gage issued
some at 100. The new price corresponds to
the changed market conditions.
Chicago subway was launched on the
Broad street curb here around so several
months ago, and ii Is presumed that, since
nothing has appeared to show that any
body here has been hurt much in the ~
point collapse in the stock In the last four
or five days, no developments along that
line are likely to take place. with the
stock back around the starting point
However. 1t Is Chicago issue, and the
manipulation In 1t seems to have had its
headquarters there. The collapse of the
week started IN Chicago, and lower levels
Some one in Chicago may have been hurt.
and in fact that has been suspected from
the quantity of selling on the stock ex-
change in the last three days that ap-
peared to have a western origin. Albert
G. Wheeler, jr., of the banking house of
j. B. Russell & Co.. said today: II am
unable to advance any positive reason for
erty is in better shape and in stronger
position today than at any time since its
organization. AT present we are earning
almost enough to pay the entire interest
on the S17.000000 five per cent bonds. BY
the first of next year. when the company
six per cent on the $40, GOO GOO stock issued
after meeting all fixed chargas