Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-26

| is large amount of money in Europe seek
| ing investment, and it is likely that in
| the course of the current year there will be
! an important movement of funds from the
other side into the attractive stocks and
bonds of American railroad and industrial
corporations Proof was offered this week
of European readiness to advance us funds
whenever the rates become attractive,
which may encourage those behind the up
ward movement n the stock market to fur
Their efforts.
The "Bear" Anxiety is Rot.
The bears in Wall street pretend to be
seriously alarmed over the Venezuelan stu
alton and resultant complications with Eu-
ropean powers. In fact, one prominent
bear said the situation was so serious
that he thought the stock exchange would
close for time Of course, this is all rot.
The trouble with the bear party in Wall
street is that they have sold stocks short,
and the sustained rise in the market has
placed them in a precarious position. So
far they have been unable to buy back
their stocks, and they are in mortal fear
of being squeezed
Street opinion is considerably mixed as
to whether the higher prices for leading
issues represent renewal OF the bull
market or whether it is only good drive
against the shorts. OF course, although
last weeks reactions were not of a very
striking character, they were sufficiently
pronounced to cause considerable unset
selling by bears who had for some time
kept their natural inclinations under sup
precision, owning to frequent unsuccessful
attempts to depress the market. Yet there
was last week probably more of a clearing
out of weak bull accounts than had been
realized up to today: Many commission
houses report a considerable reduction in
the lines that they have carried. 1t would
appear by the adviceS from London that
the speculative position there had been re-
lieved to a considerable extent by liquda-
fjnn Whether the claa rinp-Onf
has been carried on sufficiently to elm
mate weak interests to the satisfaction of
the larger powers must be a matteh of
conjecture pending further actual devel
opments in the market. II the situation
abroad as regards the prospect of peace
and the financial needs of Russia should
grow brighter it would have a favorable
reflex influence upon the market here. So,
also, if the advance in money rates here
is sufficient to bring about offerings of
foreign funds. thereby preventing any
thing like stringency in the monetary sit
uation, domestic speculation might be en-
couraged to renewed vigor
Confidence in the Market.
There seems to be decided confidence
among the members of the Waldorf-Asto-
ria clique of brokers and financiers with
respect to the market. runaway mar
ket however. is not looked for, and bro
kers are advising their clients to sell on
all substantial bulges. In view of the
preparation that it will be necessary to
make for the April 1 interest and dividend
disbursements, technically higher rates for
money are looked for in some circles dur
ing the next ten days, but as soon as the
April disbursements are made cheap money
is expected, and if further conditions are
favorable it is believed that there will be
an active and considerably higher market
In the meantime a somewhat irregular
market would not cause surprise. Rumors
have revived concerning the local traction
situation, but it is not probable that any,
Albany legislature has adjourned This
happy occurrence will have probably taken
place within the next month. Other state
legislatures will also have adjourned bv
that time, and, as Congress is out of the
way, the country'S business interests will
have political quiet for several months
VI course, the crop situation will then
develop, and the crop damage liar" will
get in his fine work. as he always does.
halfroad earnings continue to expand as
reflection of the prevailing industrial
prosperity. For the same reason bank
clearances show an almost steady enlarge
ment from the record of previous years The
rebound in iron and steel may prove as ex-
travagant as was the preceding severe and
unreasonable drop in prices and activity
but judging by present indications it will
be a long time before developments are
likely to occur in the general situation 10
check the expansion of profits among the
manufacturers of steel and iron and of
equipment and supplies to the railroads.
The winter wheat outlook, so far as NAV
be judged from the conditions which have
prevailed since the planting of the seed and
its termination is more favorable than in
some years. The country is recovering
from the effect of the collapse in the price
of raw cotton that followed the extraya-
giant speculation of 1904. Mercantile COL
lections are good, failures are moderate
in number and in the aggregate of lfabili-
ties and while the surplus reserve of the
New York banks may be smaller than is
comfortable, deposits in savings banks and
the actual mobile capital of the country are
admittedly larger than ever before.
Much interest naturally attaches to the
developments which may take place in the
railroad situation in the immediate future
The approach of the annual meeting of the
New York Central has been, and will doubt
less continue to be made the peg on which to
hang no end of tales of impending deals The
street has looked for announcements of inn
portant deals which will justify the price
level that has been esta blished for MANY
stock issues not justified by the current re-
turn of interest on the investment If there
Is disappointment in this regard it will
be natural that speculative stocks will be
sold. The cardinal fact should not be lost
sight of, however, that at present rich
men dominate the market.
OF interest in connection with the ex-
change situation Is the probability that To-
cal banking houses will assist in the under
writing of the new Japanese loan, thus
making further demand upon the surplus
money resources s. s. s.