The St. Louis Republic., 1903-10-19
Question Confronts Every Man
Interested in Stocks and
BCndS-AnSwer Difficult.
is TURNING POINT REACHED?
Several Times in Last Year Wall
Street Has Been Saved From
Complete Decentralization
by Similar Checks.
REPUBLIC SPECIAL

REPUBLIC SPECIAL
New York. oct. ls.-It was apparent.
even To the most casual observer. that
the change in the market tendency re-
suited from no radical modification IN
conditions bearing outward manifesto
lions. There was no news development Of
Importance. no clearing up Of market
mysteries. There was no great thrush OF
the outside interests and nothing to show
that the suspicion with which the specu-
lative market has been regarded for many
months by the public was in any way
aliayci.
The principal purchasers OF stocks or
the recovery were the bcariSh operators.
who hr5 been the chief sellers. But the
fact that the recovery was due TO repur
chasss ly the short interest makes Il
clearly apparent that there had been less
genuine LIQUIDATION than had been
thought. Specific properties had weak
rnod AMI declined under bear pressure.
which had forced out stock from weakly
mar-irod accounts. hut the movement
was specialized raths- than general and
uccessi'1us selling had been confined to
speculative holders whose ventures had
gone vrou-. rather than To persons who
als gs,. purchases and owned securities OUT
Is TURNING POINT REACHED
Repeatedly IN the last year liquidation
FuI s,TiIlUorl'lzat.Hn have terminated
.1 the stock market iu manner precise
'y miltr 90 that Of last week. just when
disaster has seemed imminent. selling has
halted. and the market has turned upon
itself and moved upward. Each check
ras been proclaimed as a turning point.
but each 100 turn has raised n false hope.
Wall -i..H. alAaE.s l~ NOR" interested in
.H" .Hfu.s .H1u -us mast At On" present
.wa Iss matter wrish concerns % most
Is vE E.ll"- the present recovery IS 10 b.
Hut f.-HI -"rv. UhH The many which
grove. it. .'Hrgue IN the Uas-. CT
whether rn' rEw has definitely come NJ
THarr I- ugsH 90 Be- y,il on both sides
This question. sfl DE- answer is Pos no
means r..Tr. fu- while There aye some
E.rU.y favorable f.HtIr'S iu the market
frurs are SOME N.NHE.uu- problems Co b.
mot II. solved Hf ru very remote day
Som t.lrL regtai-lv has been accom-
rIlsIrl o.. "fHHS market liIuiistilu. Tn.
.svs.u ul level Hf prices discounts much
That i- lII. and possibly it has discounted
al that De- NOW clearly isfnFuiuuhI. hut
. lUaE not Set have fully Anticipated the
fu.l measure ~ some events in the near
lHfIfD- The season gf the year C"rtuiUly
o. more uru-.fiIIs FOR the maintenance
no Improvement than all tho previous oc-
"l5lll-. when ihs market showed reCOy-
DrE- crops which yer" rather uncertain
abundant Weld The middle ~ Or,ors-
is uaSr without developing anything ike
monetary striurguCy.
MONEY MARKET SITUATION.
The money market Is s;ill something OF
an anomaly uith IT, 10 per cent call
loan and a. To- . Per cent time-money
rate ,u Wall street. coincidcnt with per
cent for ordinary business discounts and
90 rate OF 90 g. Usr cent on commercial
Ilrtr.
Uuliuess Of the security market and the
necessity OF Institutions which buy their
deposits nc hish rates 90 keep the money
employed at any price. and not abundant
fund. lIF" caused the curious condition
Aside from this. the market has made
hut limited demands on New York for
funds Tor crUp-mOyiuE purposes.
DEPRESSION fS a condition which never
has failed 90 fellow clearly defined finau-
Cial crisis. Wall street itself may answer
the question as 10 whether the Hquidating
market OF the last thirteen months Is or
Is not a crisis. Men far removed from the
scene and game of speculation maintain
that % L. n type well known TO political
economists. ar sing oiit OF the rapid trans
mutation Of floating into fixed capital.
They go further. and. pointing to the
enormous loan expansion OF the national
banks OF the entire Ccuutry-S79t sS7. .000 In
fl1raa vearS-With but the slender Increase
Of g.. .agf 90 in actual cash holdings. MAIN
tain that the disturbed condition has not
yet been fully corrected II this view Is
correct. Il Is n question OF further liquida-
Time heals al wounds. and in time viii
heal this serious one. which has been dealt
to public confidence by the careless meth
eds and inordinate greed OF bankers. pro-
moters and Wild speculators- Real and
permanent Improvement. when 10 comes
will develop along the lines OF investment
issues, not in Speculative issues.