Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-23
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, March 23-while II Is
admitted that there was fresh liquidation
in the stock market yesterday, both for
foreign and New York account apparent
ly the notable weakness in several issues
was due to a considerable extent to short
selling by daring operators who are cred
tied with having made large profits on the
short side during recent weeks. For in
stance. 1t is said that one member Of this
group OF operators yesterday sold short
between 1000 and 5000 shares Of Cana
dian Pacific. and that another member put
out a line in that stock Of about the same
proportion While a bear attack on Cana
dian Pacific has been expected for some
time. and while conservative interests sold
1t short 30 points higher, they are not
disposed to risk extensive operations for
further decline from present prices.
They admit that If the bear raid con-
tinues, and II general market conditions
favor operations of that character. the
price Of the stock will probably go still
lower. but they believe that it's technical
market position Is dangerous except to
those who buy the stock for an advance.
-
As has been pointed out recently. even
the most hopeful observers of the situation
do not look for a sustained upward move
ment for some weeks to come. 1t Is q fact.
however, that the more conservative opera
tors on the short side are covering their
contracts. II they have not already done
so, because they believe the market Is so
greatly oversold that the purchase Of only
a moderate amount of actual stock might
bring about a bear panic more disastrous
than the bull panic of last week. 1t Is
also true that conservative operators who
seldom take the short side of the market
but who have made large profits during
the last few months, have advised their
friends to quietly close out their short
be forced some points lower. they believe
its technical position is such that the short
side Is extremely dangerous.
Il
An operator who has made a great deal
of money on recent big declines said this
morning that a week ago yesterday and
today holders Of short contracts were sur
prised at She small amounts Of actual stock
offered when they began to cover some Of
their extensive lines in the most active is
sues and in which the price losses had
been the most pronounced. He believes
that the purchase of 25O,0 900 shares of actual
stock would bring about bear stampede.
Wnie the foregoing Is fully believed by
conservative observers. 1t remains to be
seen whether the largest actual owners Of
stocks will be disposed in the near future to
take advantage of the generally acknowl-
edged technical position of the market. In
some circles 1t Is believed that such ad-
vantage Will be taken as soon as the gen.
eral sentiment regarding the financial stu
alton becomes little less pessimistic.
1t may be taken as a fact that the large
business interests Of this country are CIV
ing a good deal Of attention to the proba BILE
effect upon business of existing conditions
in the financial situation. A well-informed
banker says that through his various con-
nections in business he has already been
able to discern indications of falling-off in
certain lines which he believes in due time
will extend to other lines Of business. The
keenest observers are confident that the
contraction In business throughout the
country will be very appreciable a few
months hence but. on the other hand. they
think that II reasonably good crops are
harvested the outlook will appear much
more cheerful.