Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-20
BULLS AND BEARS.
Special Dispatch to The Star.

Special Dispatch to The Star.
NAW YORK, May 2o.-Commission house
ACCOUNTS are In a very easy position. There
has baen very little exhausted margin SELL
ing this week and comparatively few mar
gin calls have been sent out by brokers.
canvass Of fifty representative houses yes
terday showed that they were carrying a
quarter or less of the total amount OF
stocks that they had week ago. One of
the largest and most active houses in the
street has about 10 per cent of the stock
that 1t was carrying at the beginning OF the
market. The call money borrowings show
how thorough the speculative liquidation
has been since the beginning of the month.
All the indications of the market tend to
demonstrate almost extensive concentration
of stocks in strong hands. It Is Wall
street axiom that it is time to buy stocks
when the public is out of the market and
holdings are concentrated
Says a broker of sporting proclivities I
back this bull market to win on its staying
powers. 1t has been terribly mauled since
the first knockdown IN December. but al
though 1t takes the count every time 1t
slaves off knockout. and although 1t looks
groggy for while afterward, it stays in
the ring. 1t shows marvellous capacity
for taking punishment, and l expect 1t to
win out.
Commission house literature is encourage
ing at the weeks end. Bartlett, Frazier
& Darlington say: 1T is accurate to say
that sentiment is very much mixed, SO far
as the market is concerned, but 1T would
seem to us as If the trump cards held by
the bear party have nearly all been played.
1t appears that the steel and iron situation
Is not nearly SO bad as some would have
it appear, and nearly all the bigger cor
porations have orders booked until well
along in the fall.
1--WE are rather inclined to believe that
stocks bought at these prices will net SUBJ
stantial profits, and it does not seem to
us that technical conditions can nullify OBJ
vious prosperity. There is too much hysteria
and too little common sense in the mar
ket''
Dick Brothers & Co. say: Rather general
liquidation of speculative accounts and the
creation of new short interest during the
past two or three days has undoubtedly inn
proved the markets condition, and 1t would
seem that there Is more nervousness and
apprehension just now than tangible bearish
factors. Without some really unfavorable
developments. we think the market should
show improvement. 1t is at least entitled
to rally"
A. o. Brown & Co. say: 1.-The break Is
generally attributed to a bear raid. rather
than to any significant change in the sit
uation. Liquidation was not heavy, and 1t
Is thought to be about over. We look for
gradual improvement and falling Off in
activity next week. The market is highly
PROFESSIONAL ana Will continue SO Until the
crops out of danger"
Atwood, Violet & Co. say: THE attitude
of strong interests in the market indicates
confidence in the general situation. Dur
ing the week large Withdrawals of govern
ment funds from the banks were made, yet
not ripple was apparent on the surface
Of the money market. Banking interests
evidently did not want to use this as an
excuse to show disfavor toward Wall
street speculation at the present time.
1t is reasonable inference that the banks
are satisfied with the situation and regard
the stock market as in safe condition.
We reiterate the view that, while believing
ultimately in higher prices, a traders mar
ket is likely to prevail for some time. and
stocks should therefore be bought on re-
cessions or on a scale down, and sold
when strong, operations being made on the
basis of quick turns for moderate profits.
Gold export talk accompanies the rise in
foreign exchange. Last week Friday oe-
mand sterling closed at 1861 and sixty day
bills at 4 S46Oa4.S570. From that point the
market advanced slightly in the early part
of the week, held its ground for two days
and rose quite sharply toward the end;
demand sterling closing yesterday at
4,S7a4.s705 and sixty-day bills at 4.so Inc
net gain for the week therefore amounts
to slightly over one-quarter cent on the
pound Francs and marks showed singu-
lar hardening tendency and netted pro-
portionate advance. The tendency seems
upward. A heavy liquidation of American
Securities held In England and on the con-
tinent should it occur. is spoken OF as
certain to cause gold exports, but the In
dication as to the feeling abroad with
regard to our stocks and bonds lead to no
such expectations. No bar to gold exports,
if exchange goes little higher, would be
offered by monetary conditions here or
abroad.