Evening star., 1908-01-22
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 2o.-That there
was considerable extension Of the snort
interest in the stock market yesterday
was generally conceded by observers OF
the operations on the floor of the STOCK
exchange. and the opinion was held -py
some prominent traders that in conse-
quence Of this the market today would
experience some rallies. though the more
conservative interests believed that prices
would reach lower levels before another
upward movement Of any size took place.
The market In the near future, 1t was be-
lieved. would probably show a good deal
Of irregularity, with rather sharp spurts
upward in individual stocks, but in the
general tendency it was likely to be q
saggtns one.
There are various reasons why it is not
held probable that the market will be
permitted to take q perpendicular DOWN
ward course. In the first place 1t is
known that large banking interests have
in view the hotation Of q large amount
Of additional loans for railroad corpora
tions. In order to dispose of these at
reasonable pI1C6 IL Is appreciated IIdh OtC
of the best ways to do II will be to make
the stock market have strong appearance
from time to time in order that commence
of the investment class may be sustained.
The period Of declining stock market Is
always a bad one in which to bring out
new securities and it is, therefore. be-
lieved that the leading issues traded In
on the stock exchanges will be given at
least intermittent support.
X =
Although the short interest in the stock
market is believed to have considerably
increased, the technical condition Is,
nevertheless. regarded as having, been i'm
paired. The rally in prices since the be-
ginning of the year has led to a great
deal OF inside liquidation. and at the same
time has created rather weak bull fol-
lowing. Instead of stocks being lodged
in strong shands. large amount of them
the hands of those who are not prepared
to protect them in the event of any pro-
nounced decline. The manner in which
stop-loss orders were caught yesterday.
increasing the selling movement, is held
to be fairly typical of what may be ex-
pected in case of future declines.
-.
Experienced operators maintain that the
stock market has enjoyed all the rise to
which 1t was entitled on the basis Of the
relaxation in money. The extremely easy
money conditions which are now prevail
ing, however. are expected to be reflected
in = continued absorption Of gilt-edged
bonds. These are being purchased by in
dividuals with idle money. who want an
absolutely safe investment. and one on
which they can quickly realize whenever
they desire to employ the money in their
own business.
1t Is noted that the demand for other
than the highest grade OF bonds is COM
narativsly light from the investing public.
There Is. of course. considerable activity
In the highly speculative bond issues
traded In on the stock exchange. but these
are being swapped back and forth in
much the same manner as stocks.
-
The contention. which has been held for
several days, that the investing and spec
ulative community will gauge its mar
ket operations more on railroad and In
dustrial conditions than on the money
market. 1t is believed. will continue to be |!
operative as the prime influence on the |
stock market for some time 10 come.
u y |
Some of the leading stock market oper-
ators expressed the opinion yesterday
that the reaction in prices, which became
quite pronounced Monday afternoon, was
likely to make further headway. although
1t was generally believed by the specula-
tive contingent that the downward trend |
for the time being would not extend to |
more than what might be regarded as a |
healthy reaction. on technical conditions. |
following extensive advances.
-
The continued ease in monetary condi- |
lions here. with the prospects Of still |
further decline In money rates within |
the next fortnight. it was pointed out by |
shrewd operator yesterday, makes the |
stock market essentially a bankers one.
and this condition of the money market |
will enable the banking element, which is
believed to be largely interested in the |
maintenance OF prices to continue to |