The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-05
GOSSIP OF VAL srREEr.

which was no sooner begun, however, than
IL was checked by freeh buying or more
spirited character than any that had been
secn earlier In the session The market
closed with an exhibition OF general strength
The theory Of bearish traders was that II
had been put UP after poor bank statement
! with view to bringing about a strong OPEN
ing on Monday on which to sell stock Less
suspicious followers OF the market were
very fayorably impressed by its recovery
from Fridays depression, The stocks sold
in Fridays trading In anticipation of a poor
| bank statement were not recovered at any
, profit.
Tho professional element is bearishly In
I clined Operations on the short side. how
over. are restrained by the experience that
wherever pressure is applied resistance Ia
. offered. The facility with which stocks
are absorbed when pressed FOR sale Is very
dlscouraging TO bear traders.
General commission business fell OF steadily
I last week and was almost entirely absent as
a factor in yesterdays market. Common
| tators are alternately sceptical because there
Is little public interest and suspicioua
because they believe that some OF the larger
I bull interests have been hquidatinR on a
/ large scale in the past few weeks. The source
| OF continued buying power In these 81 roum-
stances Is not easily determined. There has
[ been n big semi professional speculation In
] tlt IlhThtl. DfOhFTh say. unsupported ny
/ any such general public participate on IA in the
! Wild bull market OF 10000 Commission
/ houses are not loaded up with stocks. There
/ II ROOM every body says. for a largo distribu-
! ton OF stocks TO commission houses II only
/ the desired public Interest can be aroused.
( Those who believe that 1t can be are expecting
| 70 see it manifest itself under the right kind
OF leadership in the low priced stocks. The
| speculative possibilities OF the higher priced
railroad Issues, especially those that have
| figured so prominently in rumors OF great
/ deals are supposed by conservative observers
TO have been largely exhausted Not so.
however. with many OF the low priced stocks.
some Of which have not shared at all In the
markets advance.
Brokers md their more experienced clients
20 be ultra-conservstive on the market.
Their buying and selling orders about bal
snce. II Is almost daily occurrence In any
OF the older commission houses for some
client to come In with stocks which he had
been able to carry all through the bear mar
ket and ask TO have them sold. This sort OF
struggling liquidation has been going on stead
lily for many weeks at this level Advances
In some OF the hlgher priced stocks since tho
first OF the year have enabled many who
bought IN the bull market OF i90l-O2 TO SEQ
over the top OF their speculations for tho 1rst
time. The newer public element what there
is OF II. Is much more enthusiastic, When
you speak of outside business. said the head
OF large Western house last week i I'M
derstand You TO mean some new interest
in the market. that OF man who brings
HIS money In and wants TO buy something
with g. We see very little OF that. Our
regular clients. however. are trading on q
larger scale than ever before. All va need
20 get business OF that character Ia an active
market The habitual wire public Will trade
all the time and on an ever increasing scale
y haze fA,i In Fhan al
public has not appeared.
william F. Teller has entered the firm OF
Bartlett. Frazier 4 Darlington. He was
formerly with sidney c. Love Co.
Each successive dividend that an IN
dustrih stock pays improves it's standing
as an investment. as collateral at the bank
and In public estimation. Sugar. for er-
ample. ia Is acceptable In q brokers' loan
envelope at his bank as any railroad stock.
II IN said by persons who hsvs been WY
active recently In Union Pacific and who
probably know therefore, something ahont
the present market position OF the stock.
that there has been created a large short |
interest against actual holdings, and that the
stock Is being borrowed for delivery be-
cause the sellers for various reasons do not
wish 70 part with their original lines. They
have expected TO be able to cover their short !
contracts at profit while keeping their
actual holdings intact. IL is thought that
there would be limit TO the amount Of Union
Pacific stock put upon the market from any
original source In order 20 depress the price. |
The bun followers Of the stock aver that
efforts have been made TO break IT. and that
those who have been trying TO bring about
a reaction have succeeded only IN losing
stock. II Is an interesting situation.
It Is said that tho big bucket shop oon-
binations are playing the stock market for
break Their sheets. however. are light as
compared with those that were wiped out |
In the December break. One OF the surest |
indications OF the public's attitude toward |
speculation is tho state OF the bucket shop !
business Tho bucket shops have steadily |
been getting their usual share OF the public's |
patronage. but the general interest in specu-
lation has been somewhat backward since |
the first OF the year. 1t has not been tho kind |
OF bull market that appeals strongly TO the |
outside imagination. The Western bucket |
shop people made a big killing in the break |
of the wheat market q few days ago. but their |
Eastern confreres have had no such visitation
OF fortune.
The ofice trader who determines 10 limit |
the loss on a speculative venture by entering |
a stop order OF 3 per cent behind him and |
who puts such an order In the hands Of his
broker Ia prone to assume, without giving
the matter a great deal OF thought that
knowledge OF the UAnsactlon II conuhel TO
those OF that ONCE who are kec ping his account.
II doesn' I OCCUR TO him that 1t would DO OF
interest 70 any outside persons TO know
about Il. Tho broker, however. Ia too busy
with orders OF the market and other live
matters 70 take upon himself the responsl-
blity Of attending personally TO open or
waiting orders. These he will put into the
hands Of specialists, who buy and sell for
him az the members commission Of 81 a
hundred shares. Stock Exchange speo-
olallst IL a broker who confines his atten ton
exclusively to q few Inactive stocks or to one
active stock In q stock like Union Pacific.
there may be three four speclalists. In
an Inactive stock the specialist is often the
market in himself. He has the open orders
both ways-wAiting orders TO buy at certain
prices and 70 sell at certain prices. The
outslde trader who thinks that the existence
of his stop order Is known only in the ONCE
where he has tho account may be but one Of
several hundred misoellan eous spectators
all following the same stock and all using
tho protection OF stop loss orders. In the
course OF an active speculation there viii
be a large accumulation OF such orders on
the books OF specialists. Suddenly the stocks