The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-06-08
PRICES REDUCED
IN WALL STREET
Much Bad News Has Already
Been Discounted in the
Market.
PUBLIC BENEFITS GREATLY.
More Conservative Tone Brings
About Healthier State of Specu-
lation-Market Held Up Well
Under Bearish Influence.
REPUBLIC SPECIAL.

| REPUBLIC SPECIAL.
New York. June 7.--Wall street enters
upon the second week of June with prices
reduced 20 TO 100 points from the high level
Much bad news has already been discounted
by the fall in prices.
some stocks, judged by old standards
before millions and hundreds of millions OF
new capital was issued upon the properties
nave reached level attractive for cash
buyers provided the industrial reaction does
not assume alarming proportions, satisfac-
tory earnings continue and the present diyi-
dend rates are maintained
Even though liquidation in the security
market has not resulted in heavy loan con-
traction and vas attended during the weel,
by advancing, not relaxing money rates
q clear indication that heavy borrowing OF
fG con OF credit somewhere was fore
ing the hand of weak holders-much good
mas peen accomplished by the forced sell
t n,s: me process of absorption has made
. .uroner progress. Stocks have passed into
stronger hands, and have been forced to a
tevei which makes them more desirable as
pank collateral, than a year ago when
some conservative bankers feared to loan
even ON standard issues at their inflated
prices.
In many respects the country has profited
py me STOCK declines 1t has been painful
TO those who have suffered, but as in most
instances they We're chiefly responsible tor
the craze of over-capitalization. the burden
mas mas fallen where it properly should. To the
community in general the liquidation mas
peen fortuitous. which brought stocks TO
the present level, at this time when the
country has to face agriculture. industrial
anu monetary uncertainty. What might
nave happened if the United States Circuit
Sourt OF Appeals had rendered a decision
favorable to the Northern Securities Com
pany and started the speculation deba,Ich
anew is not difficult to imagine
wan street enters upon the second week
o. o, June WITH some seif-evident improvement
IN that prices are low. but with future by
no means clear. Liquidation of the char
acter to which the South recently has been
treated occurring in time of apparent
It's full course. The purging is doubtless
complete in some quarters and 1t may be
checked from time to. time elsewhere, but
the entering upon an interval of monetary
str1ngency were such to develop. would
probably start it afresh.
Gniess all signs fail. money and exchange
the present week, and money rates should
harden. while sterling exchange declines
put TINS is not an unmixed evil. for with
the hardening of money and easing of ex-
change rates, gold exports will probably be
deferred, If they do not cease entirely and
ing.
During the week Wall street experienced
vicissitudes, such as a security market is
rarely called upon to endure. There was
pitiless hammering of properties as the bear
element prosecuted its search for weak
spots and liquidation. both by affrighted
holders and those forced out by stop orders
or through enhanced margins, was a
marked feature.
All things considered, however, the mar
ket gave an excellent account of itself. of
fering resistance to selling pressure at
times when collopse seemed imminent and
making repeated efforts to throw off the
incubus of short selling. and liquidation
was not able to completely free itself from
adverse influences, is not strange, in view
of the news developments.
These included devastating floods, lorna
does, disastrous ruins in one section, blight
ing drouth in another and the fury of fire
in a third. serious financial disturbances in
Canada. involving home markets. crop dam
ages. threatened coal strike, added to the
already overlooking measure of labor dis
turbances, and. finally. to crown all of the
list. the unfavorable bank statement. Add
ed to these were the disturbing rumors and
the selling pressure. All things considered,
the wonder is not that stocks declined, but
that they did not decline more than they
did.