Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-18
BULLS AND EARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 1s.-It is the belief
OF many conservative financiers that the
recovery In the price of stocks last week,
particularly on Saturday, was too rapid
to be healthy. Consequently the sharp
reaction in American securities in the Lon
don market this morning did not cause
general surprise. Private cables say that
the declines were due to profit taking
largely for New York account, and to the
statements in the advertisement of a SEN
sational Boston operator which appeared
in the leading European papers today 1t
was expected of course, that there would
be a pretty sharp rebound from the low
prices of Thursday. but 1t is generally con-
ceded that the recovery was allowed to go
TOO far for the moment on Saturday.
*A
1t is pointed out that, with the exception
OF the relief measures for the money mar
ket brought forward by the Secretary of
the Treasury, which, of course are highly
important, the situation, both in this coun-
try and in Europe. Is not changed In any
appreciate way from what it was when
last weeks panic was in progress, or from
what 1t was some weeks ago. It Is sug-
gested that evidently the attitude of the
PRESIDENT toward the corporations has not
been changed in any way whatsoever, and
that for months to come we are likely
to have continuance of the agitation and
legislation against the large aggregations
of capital which have been a disturbing
factor In the stock market for a long
time. 1t is pointed out further that dur
ing the presidential campaign of next
year there will be new factors to be con-
tended with. and that one of the most
important issues to be tried out will be
whether the policy of the President toward
corporations is to be ratified by the people
or whether those who are opposed to the
President will have sufficient strength I'd
overthrow this policy. In other words, con-
sentative interests believe that there will
be more than the usual number of dis
turbing factors in the situation until after
the vote in the coming presidential cleo
ton is actually counted.
OF course. 1t is not forgotten by those who
are taking seemingly pessimstic view of
financial affairs that stocks have had a ire
mendous decline and in that decline that
many unfavorable matters must have been
fact lost sight of that if the railroads are
to be able to make anything like present
earnings many of the standard stocks
should be regarded as cheap. Unless the
rates for money go considerably higher than
they are now and unless the general stua-
ton becomes much more disturbed than it
is at present it is believed that investors
will continue to buy the standard issues on
every important decline. 1t Is generally ac-
knowledged, however, that at the moment
there is not very much encoura cement to
buy stocks on the ordinary speculative
basis.
A representative of one of the largest
corporations in existence expressed the
opinion this morning that unless the stock
market has another decline that carries
prices below the low levels of last Thurs
day general business will not be materially
affected. He thinks that the losses were
suffered chiefly by Comparatively few men
of great wealth and that the people at large
will gain confidence regarding the general
situation from the fact that no failures
were announced and that consequently the
financial situation, in New York at least
must be very strong. Acting on that sup
position, he thinks that business interests
in general will not be inclined to retrench
to anything like the extent they would have
been If the losses sustained had been more
widespread He is inclined to believe how
ever. that if we should have another severe
break business at large will be materially
affected.