Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-18
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK. October 1s-Expression.
of opinion by market operators this morn
| ing were little more optimistic in tone
but there nowehere appeared to be much
| enthusiasm over the prospects for tbs
market in the near future.
Underlying conditions. it is pointed out
| have experienced no decided change fol
the better and the lack Of buying power II
| quite a. pronounced as 1t has been at any.
time during the last three weeks. Com.
mission houses report that orders for quite
an amount Of odd-lot purchases for IN
vestment were executed yesterday. but
confidence will have to undergo a more
decided change than has yet been shown
before the amount of stocks taken out OF
| the market for investors effects any great
Improvement In the technical position.
4
While banking conditions are admitted
| to be sound. the banking element con-
| tinues In most conservative frame OF
mind. and is not only indisposed to par
tfcipate in the stock market to any extent
itself. but Is also advising customers to
be cautions in their commitments until
the outlook becomes clearer.
-
Opinions differ as to the significance Of
the per cent dividend rate declared by
the Amalgamated Copper Company yes
terday. Some important factions maintain
that the market price of the security has
already discounted this action. but there
are others who contend that there is moth
Ing to justify the expectations that the
dividend rate will be maintained at that
level. These argue that at the present
price of the copper the company Is not
making much money, and inasmuch as
the demand for the product has as yet
received no stimulus from the low quota
tions. further reduction in price is
probable. The Amalgamated Copper Com
pany. as is well known, has already cut
down its operations to a very small per-
centage Of the normal production, and q
complete cessation of work at the mines
would cause no surprise. In the event Of
pacity OF the company would for the time
being. of course. be completely stopped.
and 1t Is argued that in such an event
the directors would hardly feel justified
In continuing 4 per cent dividend rate
and might suspend payments to stock
holders altogether.
A good deal Of unsettlement of senti-
ment has naturally resulted from We'd
nesday's developments in regard to the
United Copper Company and the finan-
ciers affiliated Herewith, and the leading
stock market operators have expressed
themselves as uncertain concerning the
immediate future Of the market. The ar
engagements which appear to have been
made for Strengthening out the difficulties
Of one Of the firms involved allays appre-
hension to some extent. It Is admitted
that good deal Of Wednesdays selling
was for the short account, although q
large amount Of liquidation also took
place.
1t is pointed out that in Developments
OF this kind, although on the surface the
situation appears to have been cleared up,
there are always ramifcations which do
not Immediately come to light, but which
nevertheless are the factors Of weakness
Those who profess to be informed on the
Aeinze Affairs are of the opinion that the
trouble will not extend beyond the parties
which are now known to be involved, but
II Is strongly asserted in other quarters
that underlying causes may have a wider
sphere OF influence than has yet been
disclosed. Uncertainty regarding this
matter Is expected to make for irregu-
larfty in the stock market.
-
Expressions of opinions by some of the
leading stock market operators are of a
little more hopeful character in regard to
the immediate outlook for prices. All
statements of an optimistic nature on the
stock market are qualified. however, with
the proviso that nothing further of an un-
favorable character. such as last weeks
disclosures In regard to the local traction
AFFAIRS. Is brought out. Close observers
OF the market believe that the liquidation
mas run Its course, and that some rally on
technical conditions Is now in order Much
stress Is laid upon the heavy short inter-
est, and those predicting a rise base their
conclusions mainly upon the demand for
stocks which Is likely to come from the
shorts. Scarcely any ono. however, seems
to believe that the market IL going to en-
JOY more than moderate recovery In the
near future. and 1t Is rather expected that
the trading will develop into dullness until
some new impetus Is given to the market.
IT.
1t Is everywhere admitted however that
there Is 1amentable lack Of real buying
power. and this will, of course, operate
against any sustained upward movement
In the near future. Banking interests,
which have been purchasers of stocks in
moderae quantities on the recent declines
show no disposition to follow up their COM
mitments in the same direction, but are
rather inclined to tighten their load on
every favorable opportunity.
The public OF course, cannot be depend
ed upon to absorb any large amount Of
securities. and inquiry from the heads of
some Of the largest commission houses
reveals the fact that these are carrying
fairly large amounts of stocks for custom
ers who are none too we'll able to protect
them against onslaughts. This Is Regarded
as one feature Of weakness of the stu
alton, but. barring some new developments
to unsettle sentiment. 1t Is believed that
purchases for the short account will hold
the market fairly firm in the near future.
A good deal of pessimism still seems to
exist in regard to the Industrial shares,
and indications point to some further
throwing over Of these stocks on favorable
opportunities.