Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-15
BULLS And BEARS

Special Dispatch to The Star
NEW YORK. February 15.-Much of the
strength Of tho local money market lately
has been caused by heavy BORROWINGS OF
time funds. It 10 too early to say that Waii
street has learned its lesson OF last fall, for
such lessons have been furnished about
every other year, but 1t y fact that
brokerage houses have bean far more de-
sirous than In a long white OF satisfying
their requirements with time money rather
than with call loan accommodations. 1t
does not appear that the local market Is
likely to obtain a great supply Of funds
from out OF town IN the next few months.
Boston. Philadelphia. Chicago, st. Louis and
other prominent cities report active money
conditions. with rates ranging from ~ to .
per cent. 1t Is still apparent that the prin-
cipal supplies OF credit. or cash. or both.
must come from abroad-either ELECTED by
heavy exports of commodities or by foreign
purchases of our securities, or through for
eign loans-f Wall street is to avoid mon
etary or credit stringency.
Although the present situation is not
good" says a well-informed market COM
mentator. who has the highest sources OF
inspiration, monetary conditions are be-
cominS DETER.
Too much emphasis Is apparently being
laid In purely speculation circles on the
reputed let-up in the steel and iron industry
which Is probably only breathing spell"
Fttsburg advices said today that the
United States Steel Corporation had again
entered the market as buyer of pig iron
ana had taken 16.o00 tons at SITES makers
furnace 1t was also said that the Cambria
steel Company and Jones & Laughlin were
figuring on buying large quantity of iron
before March l.
Speaking of the tenor of the daily dis
patches from Washington. the market letter
OF prominent commission house says:
There are those who have remarked that
the pass. is dear to the heart OF the con-
gressman."
Taylor & Smith say in their weekly mar
ket circular: 1T Is probable that from now
on there will be announced at frequent in
tervals the contamination of railroad and
industrial changes. which have for months
been slowly progressing toward completion,
their magnitude and Importance necessitat-
ing much time and consideration in their
making. The announcements, when made
VIII no doubt demonstrate TO all that the
material advances made in certain stock
issues have had as foundation something
much more substantial than wild specula-
ton based on rumors set afoat by stock
market plungers."
1t might be added that If these deals
are of intrinsic Importance the Immediate
course of the stock market upon the sue
peSSiya fbax,
may not bear any relation to the subse-
quent course of prices. for the superficial
dealings In stocks are thoroughly profess
sional, and your profession sells when the
good news is out, no matter what may be
the ultimate and intrinsic bearing OF the
news.
~
Probably the view of the average pro-
fessionaI speculator in stocks Is that
prices are little too high for the price OF
money" II this Is SO, and there are no
offsetting factors. one might reasonably ex-
pect to see a readjustment. 1t Is not wholly
convincing to say that the big men" who
are underwriting the large and rapidly
growing total of. new bond issues must
know that we going to have bull
market"
They were doing much the same thing
toward the end of 1902 and In the beginning
Of 1903 Nevertheless the fact remains that
good stocks have been accommodating steadi-
ly in strong hands, in the hands of men
who individually and collectively represent
a great deal Of money and will undoubtedly
be able and willing to average their lines
on any material recessions. They would
not be likely to attempt to average over
the narrow range afforded by the declines
so far from the recent top, although they
have gathered in more stock on this level.