The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-08

NEW YORK, Feb. THE stock market
today offered q striking demonstration OF
the weakness engendered by sudden and
violent advance in prices and the recA-
less speculative ventures thereby invited.
The professional bear operators found an
easy prey in the swarm of spectators
who have been buying stocks for a week
past on margins, with borrowed money.
In the latter part Of the day the bears
swooped upon the market knocking prices
down with apparent recklessness and
playing havoc with special accounts held
on narrow margins. The Wiping out OF
these margins left no alternative to the
holders but to throw over their holdings
to avoid loss. The bull leaders of large
caliber had either realized profits at the
higher levels, and were willing to see q
drop in prices to get into the market
again, or withheld their support from the
market to shake off the undesirable small
holdings with slip margins. who con-
stituted a menace to the further advance
in prices.
This Is the class Of spectators who
come into the market and buy stocks,
simply because there had been an advance
In price. with sanguine hopes that there
will be further indefinite advance. They
buy stocks on small margin with Dor
rowed funds and when prices advance
reinvest their paper profits In rurtner
holdings of stock on margin. Large
numbers of them have no resources to
protect their margins in case Of de-
cline in prices. They have no sources
of information except the rumors and
tips which fly in the street. The weak
ness of their position makes them umld,
and they are quick to sell at the first
note Of alarm. 1t was this class tnat
were the principal sufferers in today
shaking out. People who control large
capital and who bought In the panic OF
December and started the bull movement
last week, have taken profits on very
large scale. There selling was met by
SO large demand up to today as to
keep up the level Of prices.
There was evidence during the morning
of continued large absorption at some
points in the list, notably in Sugar, said
to be covering for the bear account, and
Pennsylvania, Union Pacific and Tobac-
CO. Some. stocks of minor Importance
also continued to advance, but 1t soon
became manifest that the selling pres
sure was greater than the new demand
could absorb. 1t was then that the bears
made a fierce raid on the vulnerable
spots. They clipped 51a points from the
price of Tobacco. and in number OF
metal stocks, conspicuously National
Steel and Steel Hoop. and In Sugar and
the local traction stocks, they drove
down prices from to points. In the
railroad list, Baltimore & Ohio reacted
u; Rock Island nearly points. and
Pennsylvania. New York Central. St
Paul, Burlington and Missouri Pacific
from 1a4 to IN. At the low level. the
rush Of the bears to cover caused some
violent rallies, Metropolitan being pushed
I'D 51a points. In Third Avenue, Sugar,
Tobacco, National Steel. Baltimore &
Ohio and Rock Island the recover1es
ran from ~ to over 8 points.
There was a very heavy absorption all
day of Union Pacific at all levels, and
In the final rally 1t was pushed up o1s.
The close was rather fevertsh at a not
able recovery from lower levels, at net
mixed changes.
The market for bonds continued active,
but prices changes were irregular. Total
sales par value. IS, 235, OOO U. s. old As,
coupon, advanced Il in the bid price.
STOCK QUOTATIONS.
Furnished by Charles H. F. Smith &
Co, members of the New York Stock Elk
change, Pioneer Press building. who have
direct wires to Chicago and New York.
Closing prices are bid: