The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-10-17
BEARS DRIVEN TO COVER
IN THE STOCK MARKET
BUSINESS BECOMES BRISK
= Err AMONG BROKERS.
Several Heavy Spots Still Found
Financial Outlook Is More
Favorable.

New York, Oct. ls-The bears we're
driven to cover their short contracts in
the course Of to-day's trading in the stock
market, and before the close were in
something like a panic. buying in all O.
recuons in heavy volume. The early
stages OF the rise we're viewed with ap-
parent c~omplacency by the large outstaad-
ing short interest IN the confidence that
the rally would be uuimportant. as has
proved to be the case so often Of late.
Their confidence was increased by the
fact that Amalgamated Copper made but
3 feeble reSpouSe Yesterday and this morn
Ing 10 the dividend declaration. although
me OutstandlnE short interest In that
stock was believed TO have grown TO very
large proportions. An actual decline Of A
point in Reading second preferred on The
declaration OF its initial dividend also
pointed to the conclusion that good news
was taken advantage OF TO liqUIdate
stocks.
PRESSURE RELAXED.
But the fact became very evident carly
today that the pressure OF liquidation was
almost entirely relaxed. Even the much
enduring industrials suffered 10 hold up
their heads and make some scattering ad-
Vances. The bears began to discover tnat,
IN Offering prices down. they were not
meeting their recent iuvariaoie success in
disclosing selling orders ana inducing
liquidation. There were heavy portions uf
the market. Notwithstanding this seaCrsl
tendency. notably in the pennsylvania
group and the anthracite carriers
The reduction In soft coal rates TO the
seaboard and reports Of the closing down
OF additional anthracite colleIies were
supposed to be the cause of this heaVt-
ness, but the suspicion grew that these
stocks were depressed TO facilitate cover
rg in other parts OF the list. Beyond the
cessation OF the persistent liquidation there
was very little news TO account for the
turn in the market. There was a very
favorable statement Of August earnings
by Missouri Pacific. showing gross earn
ings for that month Of upwards OF 81
OO0.OOO. an unprecedented figure. while the
increase in net earnings over last year
reached S2S5.OJ.
RAILROAD EARNINGS.
A compilation OF earnings OF over nine
~ railroads for August indicates that
their gain In net earnings over last year
averages over Is per cent. These facts
may have played a part in inducing buy
ing. although they have been consistently
ignored for some time. The reported con-
tract OF the United States Steel Corpora
ton for furnishing steel 70 a great ship
building company In Great Britain was
also regarded As a promising develop
ment. The demands Of the employees Of
the Manhattan Railway failed to create
alarm. Banks seem to have gained up
wards OF a million dollars Of ~cash-re-
serves for the week. so that another
weeks advance has been made without
the development OF the customary West
ern demand for currency. The arrival at
1e mid-October season is felt TO insure
2 me safety cf the corn crop. But While
these factors may have aided In the re-
coYCry. the dominant factor evidently was
an aggressive leadership OF the market
against the short interests, which was
made successful by the cessation OF liqui-
dalton. the hanks having apparently com
pleted q process Of clearing out undeSir-
able collateral which they have been