The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-06-15
Heavy Liquidation and Violent
Declines Cease and Tide Turns ,-
in Other Direction.
LESSON TO SPECTATORS.
Notice Served Upon the Too-Confi-
dent Bears That They Cannot
Carry Plans of Depression
Too Far or Al at Once.
REPUBLIC SPECIAL.

REPUBLIC SPECIAL.
New York June 4-WaH Street has wit
| messed some genuine improvement during
the week. crop. weather and labor condi-
lions all give a better account of them
selves. and. what is more to the point
heavy liquidations and violent stock market
declines ceased, and the tide turned strong
ly in the other direction.
Some men, who observed the force Of the
rebound in prices after the long interval
of declines have expressed surprise that
the market did not earlier in the down.
ward career, give some more pronounced
manifestations of hopefulness or confidence
that the recent developments have shown it
possessed, though in latent form. This
is one of Wall Streets riddles and can be
answered only in a general way by calling
attention to the well-known fact that
speculative market is ever market of ex-
tremes
The liquidation in the market ended fortu-
nately. and to those who view the incident
In broad way 1t will scarcely be denied
that it has served some useful purposes
Many men who were saved by narrow
margin through the sudden reversal or
form in the Stock Exchange Thursday will
doubtless be rendered more cautious In the
future. In the meanwhile they have been
afforded an opportunity to pull themselves
together and TO strengthen their positions
Bankers who gave the security marley
an entirely unnatural appearance OF
strength by buying up. and bribing for a
carrying out of some scheme of overcapi-
talization may be brought to realizing
sense of the fact that high prices and .a arti-
fetal prices are not permanent MIXTURES.
When natural forces resume operation
equilibrium is restored.
The lessons taught by the market move
ments of the week are not applicable to
overconfident bull operators alone Inc
sharp turn in the market shows rather
clearly that the short interest had assumed
large proportions. and in the scramble to
cover short commitments money was lost
on the bear side. What has been accom-
been served upon too-confident bears that
they cannot carry out their plans of de-
preston too far or all at once.
A SALUTARY LESSON.
The public has been shown that men OF
the greatest resource stand ready to pur-
chase stocks when they reach attractive
figures 1t has been a Salutary lesson to all
concerned Whatever the future course of
the market may be. one fact is self-evident
that two parties. not one as was the case.
are now in the market. and that resistance
will be offered to bear attacks in the future
Unless something entirely unforeseen should
develop. no such scare can again be worked
up as that from which the market recovered
on Thursday
The present period is eminently fitted for
careful consideration OF the determining
factors in the situation Primarily. this
rests with the outcome of the harvests but
is subject. nevertheless, to notifications by
other influences. The crop outlook is of
greater promise than reading the re-
ports of flood on the one hand and drought
on the other hand had any reason to expect.
So far, however. the greatest crop of all
is concerned-that of corn-there are no
present data upon which to base calcula-
tons.
1t is idle and foolish for any one to seek
to ascribe eight months of almost continu-
Gus stock-market declines to the efforts of
the bear element alone. That. prices de
clined is simply another way of saying that
some prices had been advanced above the
value present or in the near future. of
the various properties. When some securi-
ties got low enough to prove attractive
they found purchasers and. If they become
oversold. the penalty for that is well known.
The security market. therefore. has its
corrective at hand for persons who
venture too far in either direction. 1t was
not short selling which brought the market
down so much as the natural workings of
economic laws and the spirit of conserva-
tism which is steadily growing among the
community.
1t is unnecessary to repeat in this column
the story of the overproduction of Securi-
ties and the various wild theories of finance
to which the market has been treated for
many months The sound and solvent COM
panies will survive and the old ones which
poured out their millions of capital will IN
time demonstrate whether the money was
expended wisely or foolishly. All of the
new companies. however. and all the fresh
capital created. must be tested in the lean
years and in adversely before the final
verdict is reached.