The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-08-20

NEW YORK, Aug. 19.-The reactionary
forces developed in yesterdays late stock
market became preponderapt in today S
market and caused a sharp backset in
prices. 1t was evident that the underly-
ing cause of the reaction was that the
rebound had been too fast and gone too
far. So far as could be perceived the
outside causes which We're advanced to
account for the decline were the effect
rather than the cause of it.
The dominant influence on prices were
in the market itself. Yesterdays. heavy
profit taking left the market in weaker
technical position. The concerted sell
ing all through the list caused the be-
lief that a larger bear party had been
organized among the professional trad
ers to contest the advance. In some quar- :.
tiers it was. suspected that the choice of
well recognized bear operators to conduct
the selling was a ruse to cover profit
the appearance of bear selling is the
most likely to invite support of stocks
by their market managers. The kind of
support and protection for prices which
definitely turned upward was not seen
today and the fall in prices was uncon-
tested
1t Is All Conjecture.
The speculative public at large was left
to conjecture whether the powerful cap
italists, whose leadership they have sup
posed they were following, had sold out
their stocks and retired from the mar
ket, or whether they had become disSat-
isfied with the rapidity of the advance
and the character of their following and
had determined to counterfeit a reaction
for the purpose of shaking off weak and
undesirable following of weak traders.
The reaction did, in fact uncover large
numbers of stop-loss orders and wiped
out narrow margins of smaller specula-
tors who have been attracted by the rapid
rebound. London was a seller of stocks
on a large scale, evidently in the ma
ture of rofttaking. That there were
large additions to the short interest as
a consequence of the days selling, is a
fair conjecture.
AS for the news developments that
were an influence, an important place
must be given to the question raised
whether the rejection OF the Panama
canal treaty by the Colombian senate IS
to be regarded as final Yesterdays news
of the rejecture was made much of by
the bulls as relieving the exchange mar
ket of the need for supplying means OF
remittances on the canal payment ana 40
leaving the treasury department free to
use measures of relief for the money
market Buyers on this factor We're nat
urally disappointed by today's revised
view of the canal treaty outlook ~
Currency Reform improbable. -"
Much attention was devoted to cir
cumstantial report that the legislative
leaders who are looked to TO frame
financial legislation have been unable to
agree, and that any currency reform
measures at the coming extra. session or
regular session of congress are improba Die.
The selling was much concentrated, a
single commission house disposing of
many thousand shares during the day.
The personality of the firm and its its past "a s.
employment by one of the, great -flnanc1al
groups caused considerable significance to
be attached to this selling. The further
reduction in prices of Southern pig iron
had its greatest effect on Tennessee Coal;
but the iron and steel stocks all shared
in the days weakness. :. ~
The concentrated selling referred to
largely converged on Amalgamated CopZ
per, and Rock Island was leader In ne
reaction. The low temperatures in the
corn belt and the necessity of early warm
weather to insure. the crop from ,r frost I1;s
were considerably dwelt upon. There was
a considerable covering movement at the
beginning of the last hour, but the bears
made a fresh onslaught and forced a
weak closing at the lowest of the day.
Declines i'll the active list ran from l TO
points.
ket gave way to heaviness in sympathy
with stocks Total sales, par value,
81, 952, 900. United States bonds were uh-
changed on call.
Closing List.