Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-06
BULLS AND BEARS
Special Dispatch to The Star.

NEW YORK, December 6.-The fact that
Secretary Shaw came forward late yester-
day with relief measure for the money
market caused no surprise in Wall street.
The only point about which there had been
an absence of definite information was the
form In which the government money
would be released.
1t was taken for granted that today's
stock market would open generally higher,
but there was more or less uncertainty as
to the course Of the market for the next
week or two, and perhaps until the end
Of the year. 1t was admitted, Of course,
that yesterdays action of the Secretary OF
the Treasury would relieve to consider
able extent the actual stringency in the
money market after the payments are
made. Inasmuch. however. as it was main
tained by practically all well-informed in
tereSts that manipulation has played
prominent part in the abnormally high
rates for money during recent weeks, even
the best judges are in doubt as TO what
the money market will be during the next
week or ten days. If the bankers are
disposed to take advantage of the situa-
ton and keep the rates up it Is thought
that the action Of the Secretary OF the
Treasury will not have a perceptible effect
upon the money market at once.
Whatever the course Of the money mar
ket may be during the present month the
best informed interests In both banking
and speculative circles do not look for a
serious break in the price of securities. A
banker, in discussing the stock market
situation yesterday before Secretary Shaw 8
action was announced. expressed the opin-
ion that money would be even higher before
the end Of the month than the rates quoted
yesterday. He was equally confident. how
ever, that in the event of still higher money
the active stocks would not decline on the
average more than or per cent. In view
of the announcements In Washington yes
terday afternoon and the expectation that
the Secretary will furnish still further
relief to the money market 1t is generally
believed that the stock market during the
balance of the month will at least be quiet
ly firm.
X
Whether a demonstration will be made on
the bull side will depend largely upon the
position taken by the banking interests re-
garding the money market.
In railroad circles the opinion Is appa-
rently held that the directors Of the Atchi-
son road have in mind giving to their
stockholders larger bonus in the near
future than would accrue from rights on
either convertible bonds or common stock
at par.
X
New York Central stock continues to lend
at rates much below those ruling for the
rest of the list. Loaing rates yesterday
were - per cent. compared with II per
cent for nearly all other stocks. Friends
of the Central are rather amused at the
alleged criticism of the increase in the
dividend rate of the company, which has
been put into the mouths of bankers by
some newspaper writer's. The earnings Of
the New York Central in 1906 (partly esti-
mated, plus the increased income from the
| larger dividends on Lake Shore and Mich
igan Central, would be equal to 7.31 per
cent on the total $3.50. 900 900 Of New
York Central stock, including the last issue
of S25.0OO,000 stock. These results are
reached after the operation Of the New
York Central on the basis of 1911 per cent
of earnings. very high proportion, clearly
indicative of liberal expenditures for main
tenance.