Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-20
BULLS AND BEARS

bUllS ANU btAKS
Special Dispatch to The Star.
NEW YORK, December a0-Although
1t Is positively stated that underlying con-
d1tions at this center are steadily i'm
proving. it is the opinion of most observ-
ers that the recovery in the stock market
which started the day before yesterday
is not likely to go much farther. chiefly
because the higher prices were brought
about by short covering and a small
amount Of buying of long stock by pro-
1essionai operators, who thought they
saw an opportunity to make a little
Christmas money.
1t is understood that most of the latter
class closed out their commitments on the
long side yesterday, and some of them
said this morning that they were indis-
posed to do anything in the market dur
ing the next few days, because they think
that the fluctuations will be extremely
narrow. Those who have been. watching
the market closely call attention to the
1act that apparently it has reached a
point where it does not decline sharply
on snort selling, except in the case of
some specfaltfes in which the trading is
limited. and they also suggest that unless
something new develops, prices are not
hkeiy to go materially lower in the inn
mediate future, unless carried down by a
fresh outbreak of liquidation. Next week
II is thought that the market will be ir-
regular and narrow.
No one seems disposed to buy stocks on
a large scale. on the theory that the mar
X
after the turn of the year. 1t is suggest
cd that as soon as the January disburse-
ments are provided for it will be neces-
sary for various corporations and their
bankers to take up the financing of short
term obligations, a considerable amount
or which mature during the early months
of the new year. Where it is possible it
Is assumed that a part of the outstanding
issues Will be paid off, but 1t Is not be-
lieved that in view of the condition of
the money market this will be done to any
great extent.
lnasmuch as the condition of the bond
market, unless it changes very materially
Will not admit Of new issues to take care
of the maturing notes, it Is believed that
it will be found necessary to secure an
extension of very large part of the
short-term notes maturing during the first
quarter and probably the first half of next
year.
In view of the financing that will have
to be done 1t is believed in some circles
that the money market will not be as easy
during the first two or three months of
next year as has been predicted recently.
D e
1t is understood that the chief factor
recently in influencing the most sub
stantial interests which were in any
way responsible for the recovery in
condition of the New York banks. 1t
became known to some flnanciers that
one or more of the larger banks in
this city, whose reserves have been
pretty far down the scale, had made
very substantial gains since the pub
lication Of last weeks statement. both
with respect to their surplus reserves
and their supply of currency. 1t Is also
learned that the banks as a whole have
made gains in due proportion.
AS stated, there has been discussion
for several days among banking in
terests at this center as to the ad-
visibility of their returning TO full
cash basis before the close of tie year.
Those who have favored such action
have feared that otherwise there might
be a serious furry in the call money
market. 1t is understood that the most
conservative bankers do not favor the
suggestion, although. as already indi-
Gated. they say that the position of
the local banks is daily becoming
stronger.
Those who have looked into the mat
ter most carefully are convinced that
the banks here have SO generally for
tilted themselves against the demands
that are likely to be made IN connec-
accounts in business and the distribu-
ton Of the January interest and divi-
dends that serious furry n call
money is altogether improbable.
y
Some observers who are familiar with
the banking situation and with the tech
meal position Of the stock market would
not be surprised to see the present rally
continued for several days. They do not
believe, however, that it will induce much
fresh buying. Prominent railroad opera
tors apparently look for a still further
material falling Off In trafflc in the near
future.
Stock market and financial interests in
New York have been unable to decide thus
Ear what effects such a development would
have upon the prices of securities. If
the curtailment should not be of long
duration, they think that the effect would
be comparatively slight. but if it should
cover a considerable period. it Is realized
that dividends in some cases, would be
endangered and that it might be found
that these losses in traffic had not been
fully discounted in the shrinkage in values
already recorded.
Some holders OF New York Air Brake
stocks are at loss to understand the
action of the directors with respect to
the dividend and their failure to make
any comprehensive explanation of that
action. Some of them are disposed to be-
lieve that 1t has to do with the move
ment that was on foot last summer to Sc
cure control of the company for inter-
ests not allied with the corporal ion. They
believe, ALSO that the New York Air
Brake Company has experienced great diff
ficulty in collecting moneys due it. They
think, moreover, that the actual position
of the company it not as unfavorable as
might be inferred from yesterdays action
regarding the dividend.
K =
y representative of a very important
corporation says that conditions in the
central west, particularly with respect to
the banks.- Is steadily improving. He
says that the Withdrawals from the saw
ings banks on the sixty-day notices were
not large in Cleveland. Business, how
ever. he thinks. will recede still further,
but that the benefits to be derived in
the way of regulating the prices of labor
and commodities will greatly outweigh the