The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-08-24
MARKET CROPPING
TO FIND BEARINGS,
Stocks Do Not Recover Their Equi-
lihrium and No Definite Re-
suits Are Reached.
FEELING OF UNCERTAINTY.
In Early Part of Week Prices Con-
tinue Upward, but Give Way
Under Steady Stream of
Profit-Taking Sales.

new IpIh- aug. -o-SSttChS ull TeCbN-
er their equilibrium last week. and the
story of the daily movements for the stated
time is simply that of the groupings of the
stock market in its efforts to find its bear
ings. No results were reached but 1t is
possible that the market might have found
definite tendency had it not been for the
highly artificial means adopted by the Wall
street traders to assist 1t.
In the first part of the week there was
continuance of the upward swing of prices.
in which manipulation played an important
part and which finally had to give way un-
der the steady streams of proflt-taking sales
for foreign and domestic account Then the
floor operators changed their tactics and
sharp reaction followed.
At the lower prices, however, another OBJ
stacle was met. Investors again made in
quiries and the absorptive power made its
influence felt. One or two deductions could
be made from these operations. First, that
as higher range of price is established
there is still quantity Of stock for sale.
Second. that at the recently established low
quotations investors showed an inclination
to come into the market.
UPWARD RUSH.
Looking back on the events which fol-
lowed the stemming Of the downward turn
of prices, the violent upward rush which
the traders gave the stock market seems to
have been exceedingly ill-advised. OF course
the action assisted those who had stocks for
sale, allowing weak spots to be strength
ened, but at the same time 1t induced some
investors and strong interests to resell
those securities which had been bought at
the lower prices,
The foreign buyers quickly took advap-
tase of the sudden and substantial advance
to market their purchases at handsome
the stability of the movement and their
judgment proved to be correct.
OF course, 1t was not to be expected that
ton Immediately after the distressing times
interest made possible the substantial adj
vance, but it now appears that this move We.
ment was based on nothing more than the
necessities of the short interest.
The results were unfortunate. The for
eign purchases Of our securities, which were
rapidly making exchange and would In az
proba bility have forced gold imports, hTst
ceased and subsequently, were materially
cancelled by the resales of stocks at the
eliminated. for the time being at least. one
of the factors which would have been OF
great assistance to our money market II
seems to be the consensus Of opinion tina!
the great effort which economic laws and
financial forces are now making Is for the
establishing our money market and credit
system on p more eQuttaule oaSid-
MONEY MARKET.
1t is the money market to which can be
traced most Of the present distresa OF the
agencies and multitude Of circumstances.
financial excuses and overproduction OF Sc
which produced the distemper now being
felt in our credit and money markets, much
has been previously written In this column.
The correction Of the abuses and the rectifi-
ion Of fl.n t,r,fnr fnno ia condition
and have been taking place. Something has
to give when credit IL SO impaired that 1t
demands such high rates of compensation
as are now being paid throughout the coun-
The laws Of economics work as irreastibly
as do those of nature. What has happened
months has brought us considerably nearer
been somewhat modified. Help probably
but the process seems to be slow one and
progress is frequently stopped by various
Developments. Take. for example. the
many as thousand h shares Of stock BY foreign
ers two weeks ago, estimated to be in the
neighborhood of 10000 shares, meant the
return ts this IN cyyes IT mere
This amount would have been OF ereat
assistance In the present frightened condi-
| tion Of the money market At the moment,
however. when foreigners were considering
the payment on their purchases OF stock;
the stock market took on an unnatural
buoyancy and substantial profits could be
reaped by the resales OF the stock pur-
EXCHANGE ADVANCED.
1t, therefore. came about that at the
| moment when foreign banking houses In
this city were considering importing gold
the conditions were changed. Sterling ex-
change advanced on the sales of stock for
foreign account and 1t has since rapidly
withdrawn from the gold point This de-
velopment, however. Is but an incident. As
has been stated. the process ia slow. but
the solving of the money problem is
] inevitable
! The stock market ought to assume dull
| condition, with unimportant changes IN
| either direction. As matter of fact. dnll-
/, ness In the stock market is what the lead
| ing bankers are earnestly praying for, The
present period in itself Is certainly not a
| favorable one to advance prices with artift-
i, cial stimulation, considering the fact that
/, demands will be begun in few days upon
: cotton and the wheat crops. Later on the
/, corn crop also will have TO be moved.
period OF inactivity and stock-market
| stagnation would produce beneficial results
| other than Illustrating the money market
! By the end of November or December,
| when the crops are gathered and the usual
7. stringency affecting money in the autumn
has been passed. II will then be time fol-
\ active professionals to take their bearings
| on the market In the meantime stock
| market sentiment Is more cheerful, al
i! though liquidation keeps cropping out and
| serves as a check on enthusiasm.