Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-16
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch TO The Star
NEW YORK. February 10. - Bearish
traders are disposed to argue that the de-
psrture Of 50 many prominent hnanciers
on winter vacations OF greater or less
length muet mean that there has been
considerable distribution OF securities This
Is flying In the face of the tact that there
has been no public speculation on which
such distribution could be accomplished.
Probably nine out of ten commission houses
in the last month have put out letters talk
ing about "the evidences OF distribution,
and this very fact forbids the conclusion
that stock exchange houses have been
loaded up with stocks, for the last thing
that brokers would do would be to adver-
tiss that their accounts were over-extendeo
on the bull side. And then argument OF the
bearishly disposed is that the extent "
which banking interests are committing
themselves In new securities means ina.
they can hardly be expected 70 90 mucn
for the outstanding stocks with winch 'ne'
are identified. 49,,
The obvious answer to this Is that the
bankers knew their own business pes
One of the brilliant conclusions reacneo On
the board yesterday when Jessup ana La
mont appeared as heavy lenders Oh cat
money in the afternoon. ana onereu ~ AZ al
8 per cent, was that the Stanoaru "a
crowd must be out OF Stocks II II $4,000
ing this money as the board supposed
Consequently stocks must be a SAFE ana 90
or 1t would appear that II the H'ai. 1La,.a
Oh crowd had worked OF It's STOCKS 'nu NJ
would be no reason for onerins 10 ou
siders the encouragement of easy MONEY.
AS for the winter vacations or the ieaul1
fnanciers. 1t might be argued tlat 't 1ss
must feel confident about the future OIL ti0
securities markets.
In the last six years the Standard oi'
Company has paid $50 per cent in divloeha''
\
Yesterdays decline caused the average Vi
prices in the stock market to Just aoou.
the lowest level in the selling movement
that ended for the time being at least On
January %
Leading interests in the copper tfaue
have no metal for early delivery, that 49,
up to June /. under 1S1a cents.
X 49,
Friends of Peoples Gas say that lhe
stock with five years of peace with chi
cago ahead. is a better Investment on
ner cent dividend basis than as per
cent stock subject to the contingencies OF
municipal attack.
In view OF the laCt THAT li'S NAos.'i
new securities from the early part OF 1919
until this year was at minimum there
seems to be an unnecessary amount VI
pessimism in speculative quarters over ehe
CORPORATION borrowings announced since
January /, and including the issues sun
expected So far Wall street mas hearo
of a total OF about $51O,0OO.O 600.
When two nations, one with dubious creo't
and the other with its credit still to be es-
tablished can borrow something like twice
this amount in the worlds market IN NJ
tie over a wear for the destructive purposes
of war II seems absurd to suppose that
there will not be an adequate demand LOT
the securities Of sturdy corporations dolhs
business In such a country as the oh1teo
States and seeking to raise funds for the
constructive purposes of peace. II mas peeh
estimated moreover, that the people OF the
United States have capacity for absoIo-
ing new securities at the rate of ABOUT Sl-
500, 100000 a year,
There Is some talk now of the POSSIBILITY
Of gold imports next month. This might
happen, especially II the Algeciras confer
ence ended in an outlook for assured peace
in Europe.
Concerning the effect of the great In
crease In the worlds store of new gold
that is making Dean Johnson said in his
remarkable address last year:
Not until the worlds peace is compare
lively assured will credit take wing and
bring all the new gold into potential con-
tact with goods and securities.
1t might fairly be argued from this con-
clusion that the industrial and security