Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-20
BULLS AND bEARS|
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK. November GA banker
who is naturally very closely watching
affairs both in New York and in the
country at large expresses the opinion
that the whole situation Is improving ma
terially every day. He thinks that with
in short time the scarcity OF currency
which has been so pronounced for several
weeks will not be felt and that this
change for the better will be reflected in
all lines of business. He Is confident
however. that the contraction In business
which has been underway for several
months. and particularly during the last
few weeks. will go considerably further.
and he thinks that only through a con-
tinuance Of the policy Of retrenchment
can business be restored to a normal
basis.
He also believes that when business
turns upward the recovery will be rapid.
He says. furthermore. that so far as he Is
informed there are no important develop
ments. either Of a favorable or unfavor-
able character. pending. He thinks that
derstood and that sufficient remedial
measures have been introduced to work
out the problems, and that with time and
patience It will be fully solved.
4
1t is the opinion Of nearly all observers
that for some time the market will re-
ceive sharp setbacks from urgent liqui-
dalton, such as took place yesterday
principally in Rock Island As and United
States steel Us. A prominent interna-
tional banker. in commenting upon yes
terday's liquidation in those two securi-
ties. remarked that in his judgment
very liberal policy should be pursued by
the banks and all holders of loans, at
least until financial matters are in a con-
siderably more satisfactory state than
they are at the moment. Another bank
er, in speaking Of the same matter, said
that he sincerely hoped that such poll
icy would be pursued and expressed the
opinion that nothing could b. gained by
closing out large loans arbitrarily at this
time. Because of the urgent need OF
funds by individuals and corporations 1t
is expected. nevertheless, that there will
be steady outpouring OF high-grade
securities until it is possible to sell new
securities at reasonably favorable rates,
and forced liquidation Of securities of
secondary class is also looked for.
*+
AS conditions improve it is assumed. of
course. that the market will recover grad
ually on a continuance of investment buy
ing and on short covering. but those who
are in a position to know the financial
standing of interests which have been act
i've in the markets in years gone by think
that the amount OF money available for
speculation has been SO greatly reduced
by the tremendous shrinkage Of the last
ten months that an active speculation in
stocks cannot be looked for for some
time to come. 1t is pointed out also that
the general supply for money does not
warrant such procedure.
~
1t Is the opinion in some quarters that
the new plan for relieving the stringency
of currency will be successful and that
within a comparatively short time the
nounced for many weeks will not be
notable factor in the situation. Few
students Of affairs can be found who ar
willing to make extended pr -dictions re-
garding the trend of business for the
rest of this year. 1t is pretty generally
thought that the policy OF ratrenchment
which has been in force for some time
will be continued until the turn of the
year at any rate. In some circles 1t Is
still feared that monetary matters and
business in general to a considerab ex-
tent would be disturbed near the clos
of the present year and during the early
weeks of the new year Consequently
they are inclined toward an extrem ly
conservative policy for the immediate flu
ture.
President Harahan of the Illinois Cen
trail, who was in town yesterday. said
that SO far the volume of traffic has not
been greatly affected by the disturbed
conditions of the money market during
recent weeks. He Is of thu opinion that
the business of the country Is OF such
10 re sy@f iIr,a1 c
so strong on the whole that tn busin ess
depression will be of short duration. This
is the opinion expressed by a consider
able number of prominent railroad Off
Gals. Mr.. Harahan says that TO change
has taken place in the status of the con-
test between the Hartman and Fish