Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-01
BULLS AND BEARS

special Dispatch to The Star.
NEW YORK, October 1.-Prominent stock
market operators were OF the opinion that
the recovery in prices which set in yester-
day afternoon was likely to be carried
somewhat further this morning but 1t was
not generally believed that an upward
movement from this level would continue
uninterruptedly. A good deal of irregu-
larity in fluctuations was expected for the
rest of the week.
No one seems to pay much attention to
President Roosevelt's speech delivered at
Canton yesterday, as 1t is held that the
statements contained therein are not such
as to influence the stock market one way
or the other 1t Is appreciated. however.
tnat although Wall street will be inclined to
lay stress on the remaining addresses to be
delivered. they will necessarily serve to
check bullish enthusiasm until the full text
OF them Is known.
rally In prices was induced mainly by
short covering. The short interest is be-
neved to have reached very large proper
tons, and the disposition of the trading
element will undoubtedly account large "
FOR the market fluctuations in the near
future An extreme example of the dan
ger which confronts the shorts was shown
yesterday in the squeeze in Canadian Pa
cff1c. While this stock may not be taken
as typical of the position of other promi-
nent shares, its action illustrated we'll the
vuinerao1l1ty of the short interest when
forced to cover.
That such tactics as were used in Cana
dian Pacific are likely to be directed against
other stocks in the immediate future Is not
DelleVed, as 1t Is appreciated that the larger
hnahclal interests are not disposed to
courage active bull speculation on account
OF the present money conditions
"a
The money question will undoubtedly
form one Of the chief factors in the stock
market for the next few weeks. Some bank
ers are now beginning to believe that the
tension at this center may be little greater
than was expected couple Of weeks ago.
The outflow to the interior, 1t is conceded
will make heavy drain on local bank re-
serves during the next fortnight, and It Is
doubtful II the Treasury Department will
have at Its disposal sufficient funds to
guard against a stringency. 1t is under
stood that there remains only about $20-
1900 available in the Treasury for deposits
you's plan. and the demands of trade are
ilkeiy to swallow this up very readily.
without leaving any surplus from 1t avail
able for Wall street speculation.
-
Close observers Of market transactions
declare that yesterdays heavy selling of
the United States Steel shares, ostensibly
for London account, was in reality accom-
plished by the local bear party. The orders
were executed by way of London. SO as to
make the selling appear more significant
-
Even those who take the most optimistic
view Of the stock market appreciate that it
will have many adverse influences to con-
tend with. owing to the recession in bust
ness. 1t Is admitted that this Is likely to be
followed by dividend reductions by some Of
the leading corporations It is contended,
however. that the present market price of
such securities has pretty well discounted
such action. Nevertheless the prospects
furnish fresh ammunition for the bear
party.