Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-21
BULLS AND BEARS

OF the market said today that In his opinion
It had reached such gigantic proportions
that it Was not worth while to discuss 1t
from day to day. He regarded the market
as dangerous one. particularly for opera
tors who have only moderate-sized margins
There was still great deal Of adverse criti-
cism with respect to the declaration Of the
Union Pacific and Southern Pacific divi-
dends. and apparently conservative Wall
street interests were not disposed to operate
in these two stocks. although they admit
ted that In all probability they would go
still higher. These interests were disposed
to trade In the low-priced railroad issues
and In the United States Steel stocks. par
ucutariy the common. and in the Well-eS-
tablished industrial issues
Men who were not in sympathy with the
tremendous activity in the market during
the last three days said they looked for a
moderate reaction at least any day.
They thought that the market had been
advanced altogether too rapidly, and that
In view OF the heavy profit taking that
they are certain has taken place they be-
heved that the most active stocks should
react rather sharply.
There was growing apprehension with re-
sPect to the money market on the part
OF interests who have not completely lost
their heads In the wild speculation that
started last Friday morning. Apparently
the monetary situation is being largely
overlooked by those who have entered ac-
tively into this speculation. 1t was be-
lieved that unless the trading falls OF ma
teriaiiy the squeeze in the money market
would come considerably sooner than was
expected. As soon as the market assumes
more normal tone 1t was believed that
unless seriously checked by the money mar
ket the movement in United States Steel
stocks and the low-priced railroad issues
would be marked There was little gossip
today with respect to individual stocks. 1t
seemed 10 De taken for granted by every
one except those who look at the market
In conservative way that practically every
stock on the list would have a big adj
vance.
Practically the only stock mentioned spe-
cihcally today as likely to have big rise
was Pacffic Mail. There was no fresh Cos
SIP with respect to probable dividend ac-
ton in the near future.
A Chicago correspondent says: Local
banks report signs Of an increased demand
Tor money from the interior. 1t is said to
there has been tangible evidence of the be-
ginning OF the crop demand. The demand
Tor currency Is always present. but dur
ing the past few days interior banks have
demands are more urgent than customary.
greater number Of banks are calling for
FUNDS too. than ordinarily at this season.
me condition which develops fully two
weeks earlier this year than formerly il
making Chicago bankers extremely eau
tious Rates are firm at 81 per cent as
the minimum for all classes Of loans. and
great deal OF money which. two weeks
ago. could have been obtained at that flg-
ure Is now 6 per cent. Practically every
thing. no matter what the collateral is.
where the loans date to the first of the
year. commands the 6 per cent figure. Bor-
tn ha a.
rates. and the banks can place all the
FUNDS they have in hand, but there is q
pronounced disposition to pick their Dor
roWers st. Louis, which is now feeling
Is ina the Chicago market for loans. It's
balances here have been small and neces-
sarily the demand has been an influence
In keeping the market strong here
~
So far as can be learned, the fire follow
Ing the earthquake at Valparaiso in no way
involves American fire insurance compa-
MES. The great bulk of the underwriting
was done by South American. English and
German concerns. How severely they will
suffer cannot. OF course. be ascertained for
some time yet Local insurance men point
out that the only possible manner In which
American underwriters might be connect
ed with the AFFAIR was through reinsurance,
but it was doubted among the best in
formed men that any concerns in the
United States would be affected even in
that way.
Six hundred men were placed at work
yesterday by the starting up of the ten re-
manning idle mills of the American Sheet
and Tin Plate Company. at South Sharon.
Pa. There Is every prospect of continued
work for a long period.
A. G. Becker & Co. Of Chicago say of the
commercial paper market: "The feature OF
1906 in the commercial paper market will
be the persistent buying Of paper by coun-
try banks. They have never been such
large purchasers as during the present
year. and they have obtained high interest
rates. In the state Of Iowa, and the far
west. particularly. country banks seem to
be full Of money. Their deposits have kept
up all year; City banks have done nothing
Of late except to buy short time paper for
sixty to ninety days at liberal shading Of
rates. Country banks seem able to assist
the marketing of the crops and maintain
their holdings Of paper"