Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-09
BULLS AND BEARS.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK February Tn the opin-
ion of leading stock market operators
little incentive is Offered for extensive
trading in either direction. and the con-
sensus of opinion is that the market Will
drag along for a considerable time in a
rat Their almless fashion. Operations for
the past week have been almost exclusive
ly confined to the professional element,
and there Is little hope that general COM
mission house bushes will show any de-
cided improvement i'll the near future.
Not only has the outside buying OF
stocks for investment purposes fallen to a
minimum, but the absorption of bonds
has within the last week declined very
decidedly One of the reasons for this
latter development it is pointed out. is the
advance in price of high-0rade bonds since
the beginning of the year. At current
quotatio the glt-edge bonds are now
selling on about per cent basis. and
those of a secondary grade on Az per
cent basis.
has been more or less manipulated up to
such a high level that investors have been
tempOra rily- driven out of the market
The rank and file of the investing glass
seems to be willing to place its money
permanently in any security which does
not yield from AZ 10 Jk per cent. and 1t
is accordingly expected there will be a
recession in bond prices be fore there de-
velops a revival of demand for such is
sues on large scale. -.
From a stock market viewpoint the
uncertainties involved in the political out
look. while as yet not an acute factor
toward depression, are nevertheless gen.
orally conceded to be an important infiu-
ence in killing speculative enthusiasm
Not only are the leaders of both political
parties committed to extremely radical
views on financial matters g morally, but
the agitation which Is now becoming very
pronounced regarding reduction in the
tariff is undoubtedly partially responsible
for the failure of business to show a dis
tinct revival and activity.
The pledges which the leaders of the
republican party had given. it would
seem, will admit delay to no later than
next winter in tariff revision. while. OF
course. in the event of the democratic party
bt ing successful at the polls next Novem-
Der a material cut In the present tariff
sche dulles is taken as foregone con-
clusion.
Under the circumstances it is regarded
as natural Inal tne DuSHlcSS Interests
throughout the country should operate
only on hand-to-mouth basis until such
time as this matter is definitely settled.
No one will care to stack up with larg'
supply OF mate rial the prices of which
might be SO reduced by a tariff reduction
before it is turned into the finished prod
uct as to result in a material loss. Aside
from the other disturbing political fea-
lures this factor in itself is believed to be
of sufficient Importance to delay return
Of business activity for long time. and
it is accordingly believed that railroad
and corporation earnings will continue at
low level for many months to come.
\ good deal of stress has been laid in
some quarters on the apparently heavy
short interest in the market. as indicated
by the loaning rates for stocks. some OF
which are going at a premium. This,
however. cannot be taken as an infalible
guide to the extent of the short interest.
With call money ruling at per cent or
unAer r, there is not much profit in loanins
stocks. except premium. and many
houses prefer to keep the stocks they have
in their possession rather than take the
trouble to loan them under the circum-
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