Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-03
BULLS AND BEARS

UULLO HNU ULHUO
Special Dispatch to The Star.
NEW YORK. January at is doubted
In the best informed circles that yester-
| days recovery had the support of inn
portant banking interests, and it is also
doubted that the latter expect higher
range of prices to be long maintained.
On the contrary. it may be stated that
these same interests see no good reason
for a materially lower level of prices.
Their position is that the market should
be allowed to remain relatively quiet un-
til considerable number of situations
growing out of the recent financial dis
turbance are more fully adjusted.
prominent corporation attorney, when
asked after the close of business yester-
day for his opinion of the outlook. re-
piled that the disturbance had been so
great that during the next few months it
would be necessary for corporate and
banking interests to devote great deal
| adjustment.
Every one familiar with the monetary
situation freely admits that is is steadily
improving and is almost certain TO be-
come very materially better within the
next few weeks. One feature, however.
that is not liked by some is that the needs
of corporations for money are uncomfor-
| tably' large, and until the general finan-
ciaI and the political situations clears up
| they fear that 1t will not be materially
easier for the corporations to raise money,
although the supply may be considerably
more abundant than it has been for many
months. In some circles it Is believed
| that as confidence in corporate affairs
comes back the financial needs of the
corporations will be sufficiently large to
keep money rates at higher level than
| has been predicted.
In speculative circles It is claimed that
the continued sharp advance in Northern
Pacific clearly indicates the declaration
in the near future of an extra dividend
| 1t is known that very substantial inter-
ests in the company are opposed to such
declaration at this time, believing that,
| although the company has large cash
surplus, general conditions do not war
rant the distribution Of any part Of 1t to
the stockholders.
|
The speculative contingent to a large
| extent is of the opinion that more money
will be made during the next few weeks
by buying stocks on the reactions and
selling them on moderate advances than
| by operating on the short side. This
group of stock-market spectators thinks
that the echoes of the financial disturb
ance which began about the middle of Oc-
! tol,o H. "a
undue enthusiasm regarding the imme-
| date future of the market. They are in
clined to believe, also, that the develop
| ments that will. of necessity, be consid-
largely spent their force in advance as
market factors and will depress prices
only temporarily, and as already said,
keep the market well in hand.
|
~
Naturally, the reduction of the Bank of
| Englnd discount rate yesterday will be
regarded as evidence that governors of
that institution and bankers in general
in London believe that our financial con-
ditions are steadily improving, and are
| certain to get considerably better as time
goes on. On the other hand 1t is pointed
| out that this action with respect to the
| bank rate has been very generally ex-
| pected for several weeks, and is, there
| fore. not likely to be a potent market
| factor.
X
| 1t is assumed that most of the an
| nouncements over the holiday regarding
| corporate affairs on Tuesday will be
construed unfavorably. but again it is
| suggested that none of them was unex-
pected. 1t has been known for some time
| that the Southern railroad corporation,
| for which it is said receiver Is being
| asked. has not been in a strong financial
position for several years. and undoubt
| eddy. except for the assistance Of promi-
nent banking interests. would have got
| into serious trouble financially before this
The report from Washington that the gov
eminent will soon bring suit for the sep
aration of the Union Pacific and Southern
Pacific has been talked about for many
months. and 1t has been believed in WELL
Uniformed circles that such action would
be taken in due time. 1t Is known that
the controlling interests in the property
have fully expected it and have made
their plans accordingly.
| 1t was also confidently expected that
Gov. Hughes. as a result of the recent
| financial disturbances. would make strong
recommendations regarding the state
banking system. and here again it is sug-
| gested that his actual announcement
could not have caused much surprise.
| r
X
Now that the turn of the year has
actually been made by the corporations
and business interests generally, it is be-
i lieved in some circles that more atten-
\ ton will be given than has been given in
recent weeks to the adjustment Of the
situation that developed during the last
three months of the year. Consequently.
it is also assumed that banking and other
| financial interests will not give much
attention to the organization of new en-
terprises.
While it is expected that the quotable
rates for money will be considerably
| lower than of late, it is not believed that
money will be obtainable in large
amounts except upon lligh-grade collat-
eral and that for some little time cor
porations will continue to experience
considerable difficulty in raising money
through the sale of new securities. In a
word, most conservative observers think
that the first three months of the new
year may be very properly classified as
| an adjustment DeriOd If Is not fOrpot