The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-12-14
PUBLIC STILL
NOT IN MARKET.
Wall Street Subjected to Test OF
Strength Which Reveals Its
True Conditions.
STILL is PROFESSIONAL.
Speculation Has Assumed Two
Forms. However. Which Re
duce Danger of Overarti-
mism or OverpesSimi>m.
REPIRIIc SPECIAL

REPrBLIc SPECIAL
| New York Dec l3.-'rhe test of strength
| to which the security market was subject
| ed during the week. while scarcely con-
| elusive. made clear the fact that the gen.
eral public had very little to do with thu
recent upward movement. and that mar
ket affairs still continue in professional,
hands.
Entirely aside from underlying develop
ments and the determination of the oues.
tion whether these make for improv men,
or otherwise. and if for Improvement
| whether they were sufficiently important
and clearly enough defined to encouray e
a speculative movement, was created a
technical market position. weakened by
the elimination of timid short interest.
This in Itself invited the assault on the
| market in the latter days CT the week.
but 1t disclosed nothing except, possibly,
that the larger operators for the decline
had not abandoned their position. and
! We're ready TO return to the attack on
prices. using to advantage the diminished
short account and the higher range TO
which securities had been carried by
manipuiators
Ii YVES quite apparent to any market
observer that, IL public buying had little
or nothing to do with the advance, LIQUID
alton by the general range of security
holders was not resumed and did not In
fiuenSe the decline. Manipulation was
lative following had become suspicious.
incredulous of wild advances, >based on a
mass of crazy rumors. unsupported by
development. as in the case of the BRONX
lyn Rapid Transit Company
1t was transparent to any one that if
Improvement was general and that the
public was participating in the market
demonstrations, there would be a better
distribution OF business and more uni
form movement, not one confined to eight
or ten issues.
PROFESSIONAL ELEMENT.
Consequently. there was considerable
distribution of stock by professional hold
ers. some liquidation of carried over ac-
counts. and some selling for the decline
But this only fetches back 10 the start
ing point. and shows that professional
operations We're the inception of the ad-
vance. and the most potent single m
fiuence in the reaction.
On the surface of things. 1t appears as
though the market is likely TO continue
professional for some time to come. But
the recent course of prices. the aggressive
character of the late bull manipulation
and the equally confident manner of the
subsequent bear attack. Indicate that not
all professional opera tors think alike. and
that speculation has assumed two sides.
That such should be the case is altogether
desirable. for the outward manifestation
ct two contrary opinions is likely to APP
ply from time to time a salutary CHECK
upon overopt.mism. and upon the other
extreme of overoptimism.
Probably Wall street will give much
consideration. during the present week
TO the argument In the Northern Secusi-
ties case before the Supreme Court ut
Washington. II is highly unlikely that
the final decision in the matter will be
handed down before spring but Wall
street is of the opinion that the arsumen,
VIII give. some line on the ultimate ilnd-
ings. What this will be II Is. OF courss.
impossible to state but the weight OF in
dependent opinion. based on the unanimous
conclusion of the lower court the clearness
of the opinion rendered by that tribunal,
with its elaborate citations from the
conclusions of the Supreme Court in cases
involving the points at issue. is that the
lower court will be sustained. and iudg-
nent against the merger be affirmed