Evening star., 1908-01-10
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 10. = A broker
who has been the chief factor for some
years in market activities of a good-sizeo
group of stock exchange securities SAID
recently. when asked for his opinion OF
the outlook for the market, that 1t all de-
pended upon the monetary situation, and
that the trend in business would be gov
erned very largely by the character OF
the money market. 1t is believed that the
increased activity and still higher prices
yesterday chiefly reflected the continued
improvement in the financial situation. II
is seriously doubted. however, that promi-
nent bankers have weIl-defined plans for
bringing about great activity in the mar
ket at this time. In fact, one OF them
strongly intimated yesterday that in his
opinion the market was advancing too
rapidly, and that speculation in stocks
should be kept pretty we'll In the back
ground for the time being. and Special at
tention and prominence be given to the
bond market.
No one knows better than the leading
bankers in this city who have assumed
the responsibility of financing a large
number Of railroad and industrial corpo-
rations. how difficult it has been for many
months, and. in fact. for two years In
good many cases, for the corporations to
obtain money on terms at all satisfactory
to the borrowers. These same bankers
re-lize that the position Of the corpora
tions to considerable extent Is now a
serious one. and unless confidence in cor
porations and their securities Is very gen
orally restored, 1t will not be possible to
d. xlS@ ch@ ~tA yof O
in large amounts from this time on, and
to raise money with which to make i'm
provsments and carry on business when
the revival comes.
In other words, the corporations. s a
whole, are badly in need of money. and
the bankers realize that the position Of
the corporations would only be further af-
fected by an active speculation In stocks
at this time and are strongly urging the
great need of clearing up the bond mar
ket. Until the corporations are in posi-
ton to raise new money by the old con-
servative methods. 1t is also realized, the
steel and iron industry will be in about
its present condition and the railroads
will have thousands of empty cars and
business generally will be decidedly un-
satisfactory.
The heads of most conservative COM
mission houses say that the technical
position of the market with respect TO
the standard issues Is strong by reason
Of the fact that the offerings of this class
Of securities. even at the higher prices,
are light and that probably the short in
terest in this group of stocks is still con-
siderable. These men say, also, that the
volume of high-grade issues in existing
loans is small. They do not. think the
general business situation, however, is
good, and would not be surprised TO see it
still worse before the real upward turn
comes.
The latter is the opinion quite generally
held by railroad officials. who probably
are using as the basis Of their opinion the
present traffic situation, which is resulting
in very uncomfortable decreases in gross
earnings. as well as net receipts.
1t Is understood that one or more of the
large system that do not publish weekly
statements or gross earnings made pretty
large decreases for the month of Decem-
ber in comparison with the same month
year ago.