Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-12
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. October 12.-Nothing has
happened in Wall street in some time that
is likely to attract the attention that has
attended Vice President vanderlip's speech
at Washington yesterday The following
are few comments made and the various
interpretations that may be placed upon
the simple conservatism sounded in tfs
review on present conditions:
The Wall Street Journal says: cat the
present rate OF production of gold in the
world he inelines to the view that the
monetary stocks Of the world will be
doubled in at least twenty years. The great
increase In gold production since the Boer
war has. In his opinion. been factor in
the rapid recovery from the depression Of
three years ago. and 1t has enabled the
world to Withstand the shock OF the great
Russian-Japanese war. We may add now
that the world Is at peace. the full effort
OF this great gold production should be
felt In the markets Of the world.
Without accepting the quantity theory
of money in its entirety Mr.. Vanderlip
rightly holds that an increase in the none
tary supply has a tendency to advance
prices. While he does not believe that this
will result in any economic revolution, for
there will be counteracting influences at
work, there can be no doubt that the gold
production is an influential factor In the
present financial situation. While he would
be disposed to emphasize a little more
strongly the effect of the gold production
upon prices, rates of interest ana the values
of bonds, yet in general we cordially in
dorse the views Mr.. Vanderlip has ex-
pressed"
Dick Bros. & Co. say: '.Mr. vanderlip's
rloo ri n q
ing that leading banking interests will moi
permit bull speculation at this tine. and,
approaching this, many operators and
cliques may find it expedient and necessary
to change or at least postpone their plans
for higher prices Moreover, the speech
may have considerable influence upon SEN
timent all over the country, and it Will
not be at all surprising to see 1t followed
by general reaction in stocks For the
time being we would advise against pur-
chases, except where they are made con-
servatively on sharp breaks.
Bartlett, Frazier & Darlington say: II
does not portend the antagonism of the
City Bank to the stock. but 1t does indi-
cate that the check rein will be drawn On
any speculative excess until the money
market has reached a point where an actual
stringency Is not probable. We affirm
without hesitancy that Mr.. Vanderlip and
those for whom he Is supposed to speak
are supremacy optimistic but they temper
their optimism with patience, common sense
and the most ordinary financial and specu-
lative logic. This is our construction OF
his speech, and we believe that If IT
serves to delay until the proper moment
the expected bull movement in stocks 1t
will have served most useful purpose.
II is, usual, clear. concise and entirely
to the point"
Investors in the various concerns en-
gagged in the manufacture Of box board will
receive much encouragement from the VS.
of the pooling arrangement recently circu-
lated. 1t is generally understood that the
Parks pooling plan has been perfected and
the new schedule Of prices agreed upon by
the pool interests Of box board manufac-
lures, and has gone into effect. The pool
represents 80 per cent of the manufacturers
in the trade throughout the United States.
The general advance in prices, as result
of the agreement. is about IS. The United
Box Board and Paper Company Is the main
factor in the new arrangement. and 1t is
said that there are now left only about
half a dozen plants operating independently
in the United States.
Some idea Of the amount of business be-
ing done in pig iron can be obtained from
the fact that the Tennessee Coal and Iron
Company has Withdrawn from the market
IL.
prices for No. 2 foundry. Birmingham. were
advanced to $3.50, with shipments during
the second quarter of 1906. In this con-
nection the following dispatch from Pitts
burg to local journal Is OF interest:
"Some of the furnaces that have not sold
much iron for shipment next year have
marked their prices up to SIG at furnace
and refuse to consider anything less In
dications are that within the next month
bessemer and basic iron will reach $40, pro-
viding the steel corporation buys large
block for October and November shipment,
which it will probably do There Is no
doubt of the strength Of the pig iron mar
ket and with the very high prices asked
for coke for delivery next year. In some
cases as high as 81. Is a ton at oven, there
is every reason to believe that the furnaces
that are holding their iron for a higher
price will get it,
Another important factor in the pig iron
market is that of ore, and 1t is reasonably
certain that prices of ore for delivery next
year will be at least 80 cents ton higher
than they were this year, and may possibly
be 81 ton higher. 1t is not expected that
the ore association, which was dissolved
last year, will be revived again, but at the
same time the leading ore producers have a
perfect agreement among themselves and
are going to wait until we'll into next year
before announcing their policy as to prices.
AS usual the United States Steel Corpora
ton will mine all the ore next year that 1t
will use in its eighty-five or more blast
furnaces, but at the same time win not be
seller of ore in the open market"
In the annual report of the Pacific Coast
Company President III. w. Cannon says
that the reduction in gross earnings of the
Pacific Coast Company was partly due to
light business in southeastern Alaska on
account of the canneries not being operated
to the extent of previous years, also to the
falling off in second-class passenger travel
Southern California business was light on
account of the extreme drought which pre-
vailed in that portion of the state last sea-
| son, greatly reducing the yield of grain.
WOMEN'S GOLFTOURNEY