Evening star., 1905-11-06
BULLS AND BEARS

Special Dispatch to The Star
NEW YORK, November Git could not
be learned that there was anything in the
view which speculative Wall street took to-
day of the bank statement last week that
It was a notice from the interests In con-
troll OF the money market to this effect: III
you won't be good. you'n have to-" never
theiess. there was some talk In the early
part Of last week in we1l-informed quarters
about the likelihood that compulsory
check would be administered to speculation
IL the pool operators in the stock market
refused to heed the excellent warnings
given this fall that the money market was
not yet in shape for active operations for
the rise in stocks. The bank statement last
Saturday cut surplus reserves more than
:1O.0o0.ooO reducing them to the lowest
level In more than five years. and whether
or not this showing was deliberately
brought about for the purpose OF checking
the stock market, 1t had that effect
-
Undoubtedly. the bulk Of the cash loss
shown last week was the legitimate conse-
quence Of currency movements to the west
and south. but the effect OF this loss on re-
serves was increased by heavy additions to
loans and deposits. The stock market did
not appear to be unduly apprehensive to-
day over the monetary situation, despite
the jump in the call money rate to per
cent. again reaching the highest figure re-
corded this year up to today. Speculation
for the advance and aggressive operations
on the bull side stopped. however.
John P. Davis & Co. deal extensively in
their November circular with the prospects
OF low~priced stocks. They say:
1T is well for the large people to ac-
quire long lines OF such shares as Lacka-
wanna. Delaware and Hudson. Northwest
ern. Union Pacific. etc. and wait for the
developments which may be confidently
counted upon. but there comes time when
these people have enough. and then the
smaller operators will find restricted and
probably lower market.
Prices cannot rise forever, even for the
choicest goods. and paying high prices for
options in the future may be carried too far
for the average investor. 1t is in the lower
priced properties, those which have yet to
earn place in the higher rank, and In
some Of the industriaIs which are demon
strating their substantial earning power,
that the bargains are to be sought. 1t is
likely that these will show marked in
crease In the next few months"
Statements OF railroad tfafnc On1cerS show
continued enormous pressure Of freight,
and no relief in sight from the prevailing
car shortage. Dispatches from the west
say that there appears to be no end to the
demand for merchandise of every descrip-
ton, and interior merchants and others are
buying on larger scale than ever without
having yet accumulated large stocks of any
kind. 1t is probable that part of the ex-
traordinary buying from the interior is in
preparation for large holiday trade a few
weeks hence.
In this respect jobbers and manufacturers
believe they will do an extraordinary busi-
ness this year, and that the sales will in
clude not only the vast amount of ordinary
holiday goods. but will comprise a great
amount Of high-class goods. This belief Is
based on the financial condition of the agri-
cultural districts and upon the generally
better status OF those engaged In Industrial
pursuits. The additional tonnage which
the railways will be called upon to haul on
account Of the holiday trade will only tend
to make the congestions more acute. AS
cold weather approaches the efficiency of
the motive power will steadily decrease
and the situation, from the shippers as
well as from the traffic mans view point Is
very serious, and promises to grow more So