Evening star., 1908-01-19
BULLS AND BEARS.


NEW YORK. January 1&-while it was
reported yesterday that there was
cessation of the profit taking that has
been in evidence for a week or more. not
few shrewd stock market observers be-
lieve that there will be still more stocks
for sale If the market is carried up sew
eral points from the present level. 1t ts
known that some Of the most active oper-
ators on the long side recently closed out
their commitments early this week in the
belief that the market was entitled to,
and would undoubtedly have. substantial
reaction. Naturally, they are now ex-
Pressing the opinion that the market has
had sufficient recovery for the present.
They think the market will be more or
less irregular for time. with q tendency
toward lower range Of prices.
=
1t Is Enthusiastically true that there is
greater activity in some lines of busi-
ness than there was few weeks ago,
but those who have the best private in
formation say that the published reports
of a revival in business, particularly in
.he Pittsburg district, are considerably
exaggerated. The interests which have
received information to this effect seem
TO think there VIII be not much chang
in general business during the present
month and probably not during February
Further than that they are unwilling to
make anything like definite forecasts.
-.
Both corporation officials and the lead
ing bankers are watching the trend Of the
bond market more closely than any other
-eature o. the whole situation. They
are absolutely confident that the loana-
BILE funds Of the banks. trust companies
and private individuals will be large,
during the next few months than for a
long time. They are not altogether GER
tain. however. that investors will buy
on a sufficiently large scale to bring
about an active bond market On the
other hand. they have by no means given
bonds that have been in underwriters
hands for many months and in som.
cases for nearly three years will be clear
ed up and the way paved for the issue
of new securities.
Leading stock market operators have
expressed opinion that for some time
TO come price movements are likely to be
by no means uniform. The action of the
market for the last two days is believed
to indicate that the profit-taking has as
sumed such large proportions that It will
be somewhat difficult to sustain a fur
ther uninterrupted advance until the large
volume of stocks which were bought at
lower figures and are now to be disposed
OF at price Is worked OF.
1t Is everywhere admitted that so far as
the monev situation is concerned there is
little to fear from adverse developments
IN tnat section. though 1t is realized that
the rise In prices which has taken place
since the beginning of the year offers a
temptation which is scarcely to be resist
ed to liauidate stocks which were pur-
chased during the troubles Of last fall. 1t
Is known that banking interests took over
large blocks Of different securities In or
der to relieve certain individuals and
firms. and from what can be learned from
bankers and others in close touch with
the entire situation there is q disposition
to get rid of such holdings at the earliest
opportunity.
Those who are accustomed ito base
their views on precedent point out that
year after year. with scarcely an excep-
tion. the stock market has developed a
good deal of strength shortly after the be-
ginning of a new. year and maintained its
upward course until about the middle Of
January. At that time outside buying
usually develops to such an extent as to
absorb uQuidating safes without resulting
in heavy declines In the stock market
and such conditions. are. as a rule. taken
advantage of by the Wall street COM
munity to unload the securities which 1t
had been carrying. Shrewd observers of
the situation at present are Of the opin-
ion that the period has now arrived when
there will be less aggressive buying, aud
consequently that the market Is likely to
experience quite pronounced reaction In
the near future.
&'k
It Is still believed. however, that strong
financial interests have the situation pref
ty well in hand and will not allow any
abrupt and immediate slump In market
quotations. That supporting orders will
weak spots is taken as a foregone conclu-
bullish operations will be conducted In
such an aggressive form az has been the
case during the last fortnight.
More attention is being drawn to the
continued decline In railroad and indus
trial corporation earnings. now that the
money market is no longer a subject Of
1t is. therefore. expected
that the market movements will be In
fluenced from now on more by the re-
ports of corporation earnings and other
ness depression than by money consider
alton.
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