The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-08-17
Outlook Is by No Means Hopeless,
but 1t Is Far From Fine Sail
ing Yet.
STRENGTHEN WEAK POSITIONS.
Brokers Who Were Forced to Sell
Good Stocks to Protect Unsal-
able Issues Still Have I'm
digested Things.

REPUBLIC SPECIAL.
New York. Aug 1S.-In checking the de
| moralization which was running in the mar
ket Wall street on Monday accomplished
the seemingly impossible. Once the selling
mania was halted, recovery in speculative,
issues was natural. The flve-to-fifteen-poin
| rebound constitutes no Twentieth Centur1
miracle, and was amply justified by thu
technical position of the market, prospect
I've of news developments.
OF news in fact, there was very little
during the week which would explain spe
cific advances, and in consequence many
persons. even those chiefly concerned ir
bringing about the remarkable change, were
inclined to the belief that the prices haG
recovered too rapidly to hold their full i'm.
provement. Possibly that is true, but that
objection is really foreign to the main con.
slderation. This rests on the fact that the
very considerable advance enabled many in.
dividuais. firms and possibly corporations
10 realize much more for securities which
they were forced to sell than seemed pos
sble week ago and thus escape insoIy-
ency
SHORT INTERESTS.
The 1ntestimable value of q short interest
and security market was again clearly
demonstrated by the events of the week.
Repeatedly in the past the buying to cover
short contracts has steadied the market at
critical points and made possible the fact
that ten months Of liquidation has been at
teded by relatively few known casualties.
When turn came It was the same short
interest that proved the potent force in the
MARKERS rally. No amount Of artificial
support and no investment buying alone,
considerable as that Is reported to have
Deen, could in themselves have influence SO
snarp rebound In prices as the street wit
messed during the week.
The investor, for instance. would rather
that things take their course. His income
was not affected and the lower prices de-
eli na the the more attractive to him. II he
then supporting orders would be unneces-
sary, for Decentralization would have ceased
without that aid. The conclusion Is obvious
that an extensive outstanding short in
terest was the chief factor and that its re-
covering purchases supplied the leverage
on which the market bounded up.
fully share the jubiiation current in wall
street over the rally in the market or duly
appreciate the desirability Of their position.
The giadatoas Of old %hG "a
with any. great enthusiasm In the JOYS OF
the populace as various festal days came
GIVE AND TAKE.
After all, however, 1t is a question OF give
and take in the speculative markets Tho
penalties OF overpessimism are similar IN
kind to those of. overoptimism, and both
parties have experienced some taste OF
them It In well to take common-Sense
view Of affairs and avoid rushing from one
difficulty into another.
In changing sentiment Wall street has ac-
complished much. Men take calmer view
OF things. considering what is favorable and
unfavorable in the future and Strengthening
weak positions The outlook Is by no means
hopeless, but on the other hand 1t Is not yet
absolutely fine sailing. The time OF the year
is against sustained market revival both
as to crop outlook and money.
We cannot afford a repetition OF the err
rors of last August and September. Were
uncertainties out Of the way there fs still
to be considered the injury wrought to
many by the declines. The men who were
forced to sell good stocks to protect syndi.
cate undertakings and unstable issues still
have the undigested things with them and
are crinpled.