Evening star., 1908-01-16
BULLS AND BEARS.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 16-Announee-
nent OF the Bank Of England's reduction
in its minimum discount rate from 6 to
8 per cent is expected to have something
OF stimulating influence on bull sentf-
ment and serve to Offset in some degree
the increasing bearishness of the profess
sional element. which for the last few
days has been exerting every effort to
bring about a reaction in the stock mar
ket.
Close observers OF the market. however.
are of the opinion that the forces which
have been operative in causing the recent
advance will be further effective in hold
Ing prices up for while longer. though
conservative operators are now becoming
cautious about further extending their
commitments on the long side. The enor-
nous flood Of prof1t-taking which has oc-
Cured since the beginning OF the week.
1t is admitted, furnishes strong evidence
OF the underlying strength Of the market
position, but many experienced traders
express grave doubt IL this heavy selling
will not soon exhaust the power Of alb
sorption. at least temporarily, and precip-
itate moderate decline throughout the
list
So far as the money position is con-
cerned. it is not believed that this will
offer any hindrance to the bull move
ment, but the rank and file Of traders
are laying stress upon technical condi-
M H. o.
downward trend in prices in the near
future
Todays developments are expected to
form something Of the accuracy Of the
position Of the professional element.
Should the directors Of the Amalgamated
Copper Company decide to reduce the
dividend to half Of I per cent. as 1t is
believed they will. 1t is maintained this
should precipitate a recession in prices.
unless all adverse features Of the indus
trial situation are to be ignored. Like
States Steel Corporation is awaited with
the greatest interest. as II Is believed that
this Will furnish further substantial evil
dence OF the curtailment in business
which. under ordinary circumstances,
would find adverse reflection In the stock
market.
Another matter which is hot altogether
liked Is the slow manner in which clear
ing house certificates are being retired.
Although money on both time and call is
now ruling well under per cent. and the
clearing house loan certificates have to
paysa 6 per cent rate, the elimination of
these, 1t is said. should 20 on much more
rapidly than is the case.
There Is reason to believe, however. that
the chief hindrance to the retirement of
clearing house certificates lies in the
trust company situation. A large volume.
upward Of so, ,O0O coo, was issued against
advances made to certain trust companies
during the panic. and conditions have not
reached a point which makes 1t feasible
standing against suoh advances.
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There is considerable difference of
opinion with respect to the stock market
for the next few weeks. Some interests
which think that the advance has been
too rapid say that it may be possible to
continue the upward movement some
what further. They would not be sur
pfised, however. to see q sharp reac
tion at any time. They do not think
It Is safe to buy stocks now. except on
reactions. They admit, however. that
those who have been waiting for the
market to sell of have lost for the time
.bAing opportunities to make quick profits
Of from five to ten points.
xA
In some circles It is maintained that,
regardless Of the decreasing volume of
business throughout the country and Of
this corresponding reduction in railroad
earnings. the present state Of monetary
affairs and the outlook of further i'm
pfovements in this direction warrant a
still higher level Of prices for the best
stock exchange securities. Those who
take this position claim that the demand
for bonds will be materially greater in
the near future, and that consequently the
railroads will be able to raise money
and. in turn. will furnish new business to
the manufacturing industries.
i
Every one believes that these conditions
will develop in due time, but conservative
students of the situation do not think
that they will come about as quickly as
enthusiastic stock market interests are
predicting. As a matter of fact there
are indications OF q revival Of business
For instance. at one Of the largest hotels
uptown. which, since its opening. has
had among its patrons q large number
OF corporation and business people, there
has been a greater number OF these men
within the last week or ten days than
in any time since the middle OF last Oc-
tober.
These men. who come from nearly every
section in the United States. report a
tendency to reopen mills that have be EN-
closed down and to increase the forces
at other mills where operations have
been on a small scale for some weeks
They report. also. g. better demand for
goods in mercantile lines.
Southern railroad officials are still pessi-
mistic with respect to the outlook in that
section Of the country. They think that
the present calendar year will be the
worst year for the Southern railroads
that they have seen for some time. April
the reduced passenger rates will 60 into
effect, and they say that this will ma
terially reduce the passenger receipts.
They report the lumber business as being
Ia Nd he