Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-20
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, September 20.-Brokers who
claimed to have watched the transactions
closely yesterday express the opinion today
that there was more short selling than
liQuidating of actual stock. It was admit
ted that professional traders who have been
holding stocks like Union Pacific for still
larger profits sold a part of their lines
yesterday and the day before. 1t was also
maintained that as most of the operators
who have participated in the market during
the last few weeks have not had genuine
confidence in its stability, they have bought
only moderately, and have been content
with fair-sized profits. Spectators who
keep in close touch with the commission
houses still claim that the general pubic
has not participated in the market 10 any
great extent and that consequently. in view
of the ideas just expressed, there cannot be
a great number of over-extended accounts
In other words, these observers believe that
existing accounts are well protected. and
that on any unexpected unfavoiable de-
velopments serious break in prices would
not occur. They also express the opinion
that a greater volume of stock is still held
by the large inside interests than is gem
orally realized
It is unnecessary to say that the money
market is being watched very closely.
Shrewd observers are inclined to believe
that the way is being very carefully paved
by banking interests for Secretary Shaw
to announce further relief measures. These
observers think that the recent advance in
rates by the banks to mercantile interests
is the most significant sign of further re-
lief from Washington. Attention is also
called to the fact that further issues OF
stock by the large corporations would not
be announced at this time, and important
railroad deals involving new cash would
not to be under way, unless the leading
financiers in the street were confident that
the funds for financing these transactions
would be forthcoming at the proper time
Reasoning on this basis, it is suggested that
it is not wise or logical to become too
beariSh on the stock market LOT the IN
mediate future.
On the other hand, it is believed by a
good many observers that for the next Few
days the market will be comparatively
approach of the close of the week and the
REVEALING uncertainty to the money
market and some other matters. 1t is
thought. will check bullish enthusiasm
temporarily.
The further selling of United States Steel
Common yesterday was, OF course disap-
pointing to the many friends OF that Sc
curity. Not few inquiries were made as
to the real cause of the selling. Experts
in the steel trade pointed out that there
was nothing in the iron and steel situation
to warrant pessimism with respect to the
United States Steel securities. One au-
thority is still confident that the net earn
ings for the September 30 quarter will be
easily $39.GOO,OOO. 1t is learned from trust
worthy sources that the banking interests
most closely Identified with the United
States Steel corporation, while altogether
optimistic with respect to the general bust
ness situation, still not inclined to at
tract special attention to the United States
Steel stocks and other securities with which
their name has been most closely identified.
This is believed by men who best under
stand the position of these banking inter-
ests to be the chief reason for the sluggish
ness of steel common.
Persons who should know absolutely If
important deals were pending. involving the
Reading. claim that the recent activity in
the stock has been due entirely to manipu-
lation and speculation and they predict that
the interests which have been responsible
chiefly for the big advance are likely to
have the same experience which other in
terests had last spring when they advanced
Reading to 100 higher 1t is generally
accepted fact that the Baltimore and
Ohio will pass to the Union Pacific, but
men who should be able to get definite in
formation as to What is going on assert
that the Union Pacific interests are not
seeking control of any other eastern an
thracite or bitumfnous coal road.