Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-22
BULLS AND Be AIRS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 22-Although yes
terday's stock market did not inspire gen.
eral confidence, there Is good reason for
believing that the buying was Of better
character and more aggressive than for
many weeks back. There are some observ-
ers who are DESTROYS OF seeing higher
prices. but who are stin fearful that the
market will go even lower before enjoying
a sustained recovery. Banking interests,
however. believe that stocks can be bought
at about present prices for a quick turn. II
the facts were known 1t would probably be
FOUND that the bulk Of the buying yester-
day came from banking circles. Represen-
tatives Of stock exchange houses reported
an even freer offering OF time money yes
terday than was made on Friday. In most
cases the rates quoted were declined be-
cause 1t is generally believed that 1t win
be possible to get time money at least 8 per
cent Speculative sentiment this morning
was further encouraged by the REDUCTION
OF the Bank of Germany's discount rate.
There Is now little or no apprehension as to
monetary conditions on the other side.
While the best-informed interests are con-
hdent that the market will have a very
general and substantial recovery, most OF
the large stock exchange houses are now
advising their clients to buy stocks for q
long pull.
AA
In connection with the sharp break in the
local traction issues yesterday, 1t is recalled
that for some time they have been among
the strongest features of the market. AS
q matter of fact. it has been expected that
they would be attacked earlier In the bear
campaign which has been in progress for
several weeks. One board member who
watched the transactions yesterday in
Brooklyn Rapid Transit and marlborough
STOCKS says that the bear party found that
Its members. were practically the only SELL
erS OF those issues. and hence the sharp
recovery which took place In the late trad
ing: The opinion is rather generally ex-
pressed. however. that the bear party will
make another attack upon this group Of
stocks. Little or nothing is heard now as
to the probability Of q dividend being de-
clared on Brooklyn Rapid Transit in the
near future. There seems to be some genu-
Inc apprehension, too, as to the probability
of state legislation against the local public
utility corporations.
i II
Although the interests who are leading
the market circulated again yesterday
trouble rumors regarding several large
firms. it is known that banking institutions
have not been at all apprehensive regarding
the soundness of the stock exchange firms.
This kind of rumor is one of the best known
tactics of interests working for lower
prices, but for the present it is believed
that it has pretty nearly spent its force.
The enormous transactions in Reading
were puzzling, even to some of the closest
observers. 1t is known that interests who
have made enormous profits in this stock
on the long side closed out a large specula-
tive line around $50 and have been oearish
on the stock ever since. They have init
mated that at slightly above 100 the stock
should be regarded as a good purchase.
Most observers are Of the opinion that
practically the lowest prices for reading
were reached yesterday.
X Il
The ease with which United States Rub
Der common recovered to 501z is taken as
clearly indicating the strong market POSI-
ton of the stock and the belief on the part
Of interests in close touch with the actual
earnings that it will soon enjoy one OF its
CHI ord fue