Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-26
AND BEARS
Special Dispatch to The star.

Special Dispatch 70 TAs Star.
NEW YORK. April 25-The opinion
was expressed In some speculative cir
cles after the close Of business yesterday
that the short interest in the market had
been almost altogether eliminated. This
opinion was apparently based to q con-
siderable extent on the reported heavy
| buying In of stocks for the account Of the
large stock exchange hrm whose naspen-
sion was announced early in the day and
also on the idea that this short covering
had induced similar transactions for the
! account Of operators whose commitments
on the short side had been reported as
extensive for long time. Some shrewd
observers expressed the opinion this
morning that the outstanding contracts
on the short side are still sufficiently
large to be an important factor In the
technical position of the market. This is
believed to be particularly true in the
case Of Steel common.
has been pessimistic for some months
and during that time 1t Is claimed that
the short interest was very materially
increased. Even prior to the panic Of
| operators was to sell that stock short In
| q seemingly reckless fashion.
| 1t is claimed by some Observers that
| advantage was not taken in good many
contracts and that they have been pro-
tected In tho meantime in the belief that
a lack Of business, the possibility Of Door
| crops, uncertainty as to the political sit
uation and agitation and possible action
regarding the tariff would carry the price
we'll below 20. Within the last ten fiays
important operators have been atS.sed
| to sell Steel common with the assurance
that handsome profits would be realized.
| -
There are important spectators who
believe that the short interest 10 still
large enough to be tho sustaining factor
in the market for some days at any rate,
and 1t Is true that some operators are
strongly disposed to take the short side
at the present time, believing that prices
cannot be carried much further. Those
Of an optimistic turn OF mind think that
the short interest and the new buying
will be sufficient to carry prices some
what higher. They say that the large
stronger inclination Of investors to take
| bonds should not be lost sight of
for a moment. Even those who are the
] most optimistic daily caution their clients
against the danger OF becoming heavii,
committed on the long side, because they
are certain that within the next two or
three months the market will receive
some severe tolts.
Conservative interests say that Wall
street should not become unduly en-
thusiastic over the success OF the Penn
sylvania and Interborough loans. They
point out that no better bond could be
| q Irod ~ hHS3 Inn S1ov hah hA-
| ing offered by the Pennsylvania, and that
| the Interborough notes are security also
| of unquestioned value. They are not 80
| certain that other corporations less ia
vorably situated will be able to finance
basis TSsy f 1eeSe ho%evsr thas from
| this time on It will be easier to get the
possessors Of money to invest In railroad
| bonds than 1t has been at any time dur
| ing the last two years or more.
-.
Further improvement Of q moderate
character is looked for in the stock mar
ket as a whole, and It - expected that
the price advances In the case Of some
individual securities will be pronounced.
Far-sighted observers. however, have in
mind the possibility Of unpleasant de-
velopments In the political situation q few
months hence. and the fact that It 10 yet
altogether too early to say much about
the crops. Consequently, It - believed
that speculative operations In the stock
market will be carried on conservatively.
II 4 ---...-----
Some weeks ago the head Of q repre-
sentative bond house In this city, who
had been extremely conservative for a
year and a half. expressed the opinion
that before the close Of 1908 we would
have q big bond market. He based his
belief on The idea that the individual
possessors of money would gradually re-
gain confidence in corporation affairs. and
| would consequently turn to bonds first in
casting about for mediums OF investment.
He was also strongly Of the opinion that
the rapidly increasing amount of money
at this center for which there was little or
| no demand would lead institutions to be-
come liberal buyers Of first-class bonds.
He also said at that time that something
would have to be done to give the bond
market good start.
IT.
| In the opinion Of some conservative
hnanciers the floating Of the Pennsylva-
MA bonds will prove to be the entering
wedge OF a decidedly better bond mar
ket. From what can be learned banking
interests are disposed to give only SEC
ondary attention to the speculative end
| Of the stock market. but propose to do all
| in their power to restore confidence to the
extent that investors who have been al
lowing their money to be unproductive
| for some months at least will come for
ward and buy the first-class bonds. and
after they are out Of the way be willing to
| take up the issues which have somewhat
Of speculative feature.
1 II
In the judgment Of most bankers II
such a program can be carried out the
speculative stock market will take care
Of itself to q great extent. At any rate.
1t 10 not believed that its tendency will
be downward. On the other haAd. 1t is
assumed that pool managers and others
specially interested in the advancing OF
individual securities or groups Of securi-
| ties will be duly active and that prices
will advance proportionately.
L