New-York tribune., 1920-01-07
In Wall Street
The Poor Bears

The Poor Bears
zone Of our friends" certain Stock
Exchange firm put on the wire yester-
day, "who is sometimes good as q
prophet on the market, but usual
ly bear, says there hasn't been
any money on the short side for
the last six weeks" Most Of the
consistent bears admit that they
have had pretty lean pickings, hut
they are hopeful that before the end
of the current year they will have
reaped their reward. Curiously enough,
there are to be found both long-pull
bears and short-pull bears, and they
all are confident that they are right.
One Mans Opinion
jacques Cohen, of J. S. Bache & Co.,
said yesterday: "The following factors,
in my opinion, will contribute toward
lower prices between now and the mid
die of March: Low foreign exchange
working against export Of commodities
and materials, decline in domestic
commodity prices and sustained tight
ness of money. Furthermore, the aver
age prices Of industrial stocks have ad-
vanced nearly 70 per cent from Janu-
ary 1, 1919, without an appreciable re-
to be taken. On the other hand, the
average price of rails is at the lowest
point in the last decade, and construc-
tive legislation should benefit them all
along the line"
U. 8. Rubber Meeting Tomorrow
Through ALI the bearishness gen.
Grated by yesterdays declining stock
market United States Rubber common
held up remarkably we'll, considering
the extent of its recent rise. On deal.
ings of close to 10000 shares, Rubber
touched a high of 142A, dropped to a
low of 1917 and then rallied at the
close to 1881, showing net loss Of 3
points. This was the first real setback
if it could be called such, since the
days of 1919.' The directors meet to-
morrow. Stockholders are pretty con-
fident that something rather liberal in
the shape Of an extra cash dividend or
q stock dividend, or both, will be forth
coming. 1t has been upon expectations
of melon that the rise has been
based. Late yesterday the Street heard
that the stock dividend might be post
poned until after the Supreme Court
renders its long-awaited decision on
the taxability Of such disbursements.
Not According to Form
Not many days ago, in fact within
week, stock market prices climbed
when call money cost Wall Street bor-
rowers 25 per cent. Yesterday the
anomaly was presented of per cent
money and declining market. Senti-
ment, however, continued cheerful in
the main. A good part of the financial
community looked upon the fall in
prices as a natural setback, one of
those '"healthy and natural reactions"
that the Street frequently talks of as
being needed to correct the technical
position. Professional operators had
something real and tangible on which
to sell stocks. That was the statement
OF Governor Harding, Of the Federal
Reserve Board, who told the bankers
in Washington for a confer
ence on the credit situation that the
extension of bank loans for non-essen-
tlal purposes should be discouraged.
There was nothing new in this. Every
one knew something Of the sort was
coming. Moreover, the Reserve Board
members told the country in October,
and again in November, that credit
expansion must be curbed. The best
opinion in the Street was that the pro-
fessionals used the latest utterance of
the head of the Reserve Board as an
excuse for selling. and that they were
to make drive against
prices, regardless Of developments.