Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-13
BULLS AND BEARS
Special Dispatch to The Star.

NEW YORK. August 13.-According to the
opinion Of some of the best judges of tech
nical conditions prevailing in the stock mar
ket and the financial situation as whole
little hope is extended for any pronounced
improvement in prices until the present
mania for attacking corporations has sub
sided In view of the very pronounced
fall in the stock market yesterday 1t was
believed that a temporary rally would take
place today, but the more conservative ele-
ment did not think that any Improvement
will be sustained. The fact that there has
accumulated enormous short interest Is
fully appreciated and this is regarded as
the mainstay of the market at the present
time.
specialist in one of the leading railroad
stocks said this morning that had it not
been for the covering of shorts yesterday
panic could not have been avoided. These
operations went on virtually throughout the
day In lots of from 1000 to 10000 shares
and furnished the main source OF resistance
to the downward trend. The support ex-
tended by banking interests is generally
conceded to have been comparatively light.
although IT was offered at the most critical
times of the day 1t is we'll known, how
ever, that the leading bankers are In no
stocks now, they feel that the part Of
wisdom is to conserve their funds, lest there
may be more urgent need for them later on.
Summing up the situation. an official of
one of the largest national banks and a
representative of one of the leading finan-
cial factions said this morning: The gov
eminent, the peoples government, has in
Vited disaster by its corporation policy, and
the invitation Is apparently being accepted"
This is right in line with the views ex-
pressed In the John D. Rockefeller interview
published this morning. and 1t might be
SAID that the opinions set forth therein
pretty accurately represent the views taken
of the situation by responsible financial in
terestS.
One of the worst fears of the stock mar
ket position. revealed yesterday per-
tains to unmistakabie evidence that the in
vesting public at large had become thor
oughly frightened and is beginning to
throw over It's securities Last week there
was noted considerable liquidation of stocks
which came out of strong boxes where they
had been held from one to five years. but it
is declared by competent observers that
the flood of stocks sold for out of-toWn &C.
counts covering all parts of the country
yesterday clearly shows that the wave of
pessimism is no longer confined to the
financial district, but is extending to all
parts of the country.
That the majority of stocks are cheap at
their present levels is generally conceded,
but If the aggressive policy now being pur
sued by the administration Is continued 1t
is easily conceivable how the whole indus
trial structure Of the United States may be
altered and a state of affairs brought about
which will decrease the earning capacity of
corpora tons to such an extent as to make
1t necessary for them to radically reduce
their returns to shareholders. Mr.. Rookie
feller's statement that confidence has been
shattered is generally agreed with, and this
is taken to mean that unless there is a
speedy revival Of confidence business inter
the country thrown into a period Of de-
preston, the extent or length of which no
one can hope to foreshadoW.
A conference held yesterday of the at
torneys general representing the Mississippi
valley states for the purpose of determining
upon some concerted action against cor
porations is regarded as merely an indica-
ton of what may be expected in that line
from all quarters. and, needless to say, Is
not a reassuring factor. Aside from mat
tiers of a political consideration, the money
position Is not such to encourage bull
speculation. Liquidation in stocks will, Of
course improve the bank position, but with
time money commanding such price as it
does now, even before the movement to the
west for crop purposes has begun In ear
nest, the outlook for securing loans later on
at any reasonable figure, when currency
shipments to the west assume large pro-
portion, is considered by no means opti-
mistic