The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-08-16
PROFESSIONAL TRADERS
WORK FOR A REACTION.
WALL STREET MARKET HAS
UPS AND DOWNS ALL DAY.
Substantial Gains Are Made OIL
General Sentiment That Bet
ter Conditions Will
Stay

New York, Aug. 15.-Operations in to-
days stock market were made up largely
of professional trading. AN important pro-
portion of the Stock Exchange membership
having left the city for an end Of the week
holiday. The professionals were inclined to
work for reaction, owing to tho rapidity
of the weeks recovery in the market. which
might be assumed to have built UP vul-
nerable account on the long side Of the
market. London evidently took the same
view of the situation and made !nroads on
last nights prices here before our opening.
The selling by the arbitrations quickly car
ried prices down to the London level. There
was also free profit taking IN Amaigam mate.
After the London selling was completed
there was a pause and then a vigorous re-
covery. which retrieved practically all the
losses. This was apparently in anticipation
of a very favorable bank statement. The
statement did not meet this expectation,
The loan contraction: in view of the weeks
been regarded as an unpleasant surprise
but the sentiment of the market seemed
more Influenced by the loss of cash whsre a
considerable gain had been hoped for.
SELLING RESUMED.
The market sold OF again to about the
for some of the principal active stocks.
terminated for the present in the plunge OF
witt with some Violence this week. It was not
ures in the way of support for the market
by large buying orders and by ehe relaxa-
tIon Of the pressure for liquidation Of loans
morning saw an ingathering of influential
men in the financial world recalled from
various quarters by Saturdays events. and
IT. is commonly supposed that the results
Monday extent brought ABOUT
concerted measures among bankers and
capitalists. The mere fact Of the arrest OF
selling pressure upon the market caused
by the destruction of margins and the con-
slant shrinkage of collateral. There was
some further selling of collateral out OF
loans early in the week. causing continu-
ance of some of last weeks rumors OF
financial difficulties overhanging the mar
much more confident and determined char
acter than for long time.
RISE OVERCOME.
After period Of some hesitation the
market ruled strongly upwards and the ad.
vance became SO headlong that even the
friends of the movement began to have
some fears that Il was overrunning. itself
market after SO prolonged fall in the price
should leave very large short interest.
uncovered. and It was equally natural that
at the bottom should maneuver vigorously
to help the advance and wrest additional
profits out of the necessities of the uncov-
cred bears There was besides large invest.
ment interest waiting for the market to turn
to supply them with reinsurance to come
in and take stocks. 1t had been confidently
held that the necessitors selling for some
time without regard to values OF stocks
was carrying the level of prices lower than
was justified by any stringency in the
money market, with consequent higher
interest rates. But SO long as money
necessities promised to force con-
tinuance of the selling OF stocks, buyers
were determined to keep out OF the market
on the chance Of getting stocks cheaper by
waiting. These conditions were bound to
cause violent upward reaction at some
time without necessarily waiting for a
change in the conditions which have caused
q great shrinkage in prices the simple
fact Of the LIQUIDATION accomplishing the
needed relation and thus putting an end to
N IMPORTANT ABSORPTION.
It was found also when the market turned
that there had already been an importaIi
absorption OF stocks on scale-down by
capitalists. corporations. and foreign
buyers. This had the effect of lessening the
supply of stocks In the market when the
buying demand developed. Buying on q
scale-down satisfies itself with tho accept.
ance Of offerings and affords no check e
a fan in prices The buying for foreign &C.
count. which has been admittedly large