Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-10
BULLS And BEARS
Special p..p.,ch to N. star.

Special Dispatch to The star.
NEW YORK, March 1O.-Under ordinary
circumstances Wall street expects an In
vestment demand. shown In the bond mar.
kef 70 be Q forsruuner OF rise In Stoeks-
For several months now the bond business.
both over the counter and on the board.
has been goinS from bad to worse, and
curious and apparently not at all IN alb
surd theory about the relation OF the bond
market to the stock market has been pro-
mulgated. which seems to explain the con-
tinuing strength OF stockA In substance
the theory L. simply that investors. instead
of putting their money into securities OF
fixed yield and very definite value. have
good reasons for preferring weil-established
speculative bond issues and stocks. on
which the yield Is not fixed and which
have great possibilities of market appre-
citation. When the bond business is spoken
Of dealers generally mean business In
bonds of the higher grades. II anything
there has been lately a trickle of nquida-
ton on such issues and concessions Of as
much l per cent In prices have failed
to evoke a demand for them.
There has been q better market for lpec-
ulative bonds such as mortgage issues OF
low price convertibles and income bonds.
At the same time sound and seasoned diyl-
dend- paying stocks have shown inolcatlohn
OF an investment absorption winch mas nao
regard both to the established character oi
dividends, the prospect or permahency anu
increase In the rate the likelihood ot extra
distributions. the growing equities, the Size
OF present earnings and the outlook ior :ur-
Their gains. This demand has not had SO
much regard to the actual yield ut present,
although IT is to account for the absorption
of some industrial preferred shares which
yield from 5 to per cent or more.
Reasons for what Il alleged In some quar-
tiers to be shifting of the investment de-
mand, IL not an actual shifting OF invest
ments, from fxed-yield securities to stocks
and speculative bonds are not hard to find.
They appear to have something to do with
the actual and prospective effects of the
great gold output of the world and the prob
able course Of interest rates.
Il
Americans find 1t hard to believe that
the outcome Of the Algeciras conference
can have SO important bearing on the
worlds money markets as It has,, says
broker who is native of Frankfort. Il
have never forgotten what my father used
to say forty years ago: IF Napoleon in
Paris wakes UP with a headache Russian
securities will fall He meant by that to
show the sensitiveness of European mar
kets to the slightest factor of political dis
turbance. 1t has always been so, and until
the worlds peace is guaranteed 1t will al
ways be so. European bankers. business
men and investors, confident as their op-
erations may be at times, always have
lively apprehension of political trouble.
The European sky is always developing
war clouds. When such situation as that
which IS called the Morocco affair comes
about 1t always locks up credits. Ameri-
cans. with their great and powerful coun-
try in such secure geographical aloofness.
cannot begin to form an adequate concep-
ton of the feeling of Europeans that they
are dwelling constantly on the edge of
crater of war that may at any time be-
come an active volcano"
distribution Of 81 a share will be made
March 20 on the stamped stock Of the
Fort Worth and Denver City Railway Com
pany. The funds for the same now being
held by the Morton Trust Company, for the
purpose of the distribution the transfer
books will close on March 13. The previous