Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-06
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NV YORK, February 6.-An active
stock exchange member says that he has
had an opportunity recently to gather in
formation AS to the extent of the invest
ment purchases of stocks in small lots
during 1907. the statistics regarding which
in some instances have not been made
public Commenting upon the surpris-
1ngly large volume of this class of pur-
chasers. he said that, while he sees moth
ing to bring about higher prices in the
near future. he does not care to be heavily
short . of the market when the people
have so many stocks and own them out
right. In other words. he thinks that the
floating supply of stocks, particularly
those regarded as esta blished dividend
payers. has not been so small in some
years as 1t is now. Consequently. when
conditions actually begin to improve in
general and comprehensive way. he
thinks 1t will be possible to rally the
market very rapidly on a comparat lively
small amount of buying of actual stocks.
On the other hand. he admits that the
market as a whole. and particularly in
dividual securities. are likely to have
sharp breaks from time to time by forced
selling and the indosposition of Wall street
to buy speculatively at this time. Inside
interests. as was clearly shown during the
most recent weakness in the Rock Island
issues, are not inclined to give support to
the securities with which their names are
directly associated when they discover
that part of them is being pressed for
sale. He calls attention, however to the
fact that, as was also shown in the case
ha CT oEr
that are pressed for sale from time
to. time quickly recover as soon as forced
selling is completed.
1t is generally admitted that the poIiti-
cal situation will be a highly important
factor in the stock market and in general
business for several months at least. 1t
is pretty generally conceded that it will
be more of a factor than bad railroad
earnings or light business, for. all things
INTO consideration. those who are viewing
matters in the most charitable aspect
think that the market will continue to
drag, but they do not believe that il will
slump seriously
An active broker. in referring to the
market, said that although a general
Wall street. he is unable to see how it is
possible for the professional operators to
depress prices much further. He added
that Wall street has been very generally
and thoroughly liquidated and that COM
mission houses are carrying on the aver
age only a small fraction of their normal
quota of stocks for this season of the
year. He admitted that individual secu-
rites will probably display special weak
tiy,1n 10
Their liquidation Of loan accounts. He is
disposed to believe. however that as soon
as there are any marked indications of
general Improvement in business the &C
tive issues will enjoy a pronounced re-
cOverv.
Most observers of the situation, how
ever. take a somewhat Iess optimistic
view of the immediate future of the spec
ulative movement. They are inclined to
believe that the unfavorable announce
ments that are expected at somewhat
frequent intervals will be sufficiently i'm
portant to check any active speculation
in stocks that might otherwise spring up.
Reference was made specially this MORN
Ing to the reported menace of complete
shut down by the Baldwin Locomotive
Works. Those who are in close touch
With the manufacturing situation
throughout the country are afraid that
similar announcements will be made by
other important concerns
While the suspension of a bank of
ordinary size that may have been Grip
pied ;dur1ng@t1fo financial troubles of last
autumn is not Iilsei y to be taken seriously
and In all probability would be regarded
chiefly as an eeho.of something that has
passed. it is realized that most of the
large manufacturing industries have to
great extent filled the orders that have
been on their books for many months in
some cases, and that the business which
they Will do from this time on will rep
resent almost altogether new orders. Con-
sequently, If these do not come tn rahd
as they have not done on an appreciable
scale so far. 1t is fully realized that the
earnings will be very seriously reduced.