The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-30
FINANCIAL AND COMMERCIAL.
TUESDAY, Sept. 70.


What the stock market did to-day was
to disprove pretty thoroughly the idea that
there was something hanging over IT,"
A security markst In which disaster was
impending. even Though the event might
have been comparatively unimportant and
such as would be entirely expected after so
long a period OF declining prices as that
which has recently ruled In this country.
could not. IL experience Is any guide, have
displayed such strength. activity and resil-
iency as was Witnessed to-day on the Stock
Exchange. The matter deserves to be
emphasized because the chief governing
force In the market in the last few days.
the one, that Is, at whose door must be laid
the largest measure Of responsibility for the
extreme declines in prices yesterday and on
last Thursday and Saturday, has been a
vague. indefinable and wholly mysterious
impression in the minds Of people that
something" was about to happen which
would deal the market blow, and that 1t
was we'll, therefore, for every one to make
his burden Of securities a. light AZ possible.
If any one confessing to this feeling was
asked 10 state his fears IN detail, the only
explanation he could give was An nine cares
out Of ten, one Of the stale rumos reflect
ing upon the credit OF this or that
business house or individual that has
been afoat in Wall Street for months past
and which, on the most thorough investi-
CATION by banking interests. have been
found to he untrue. Nevertheless, the
infecti ion Of these rumors spread and yes
terday had plainly enough produced
semi -demoraiized state Of public opinion.
not only in Wall Street, but throughout
the country. While there was a very
ment purchases by those who were in calm
possession of ready funds and cool heads,
there was. on large scale. the throwing
over Of stocks by holders who had not the
slightes reasons for SO doing except those
of pure fright. This, added to the selling
that did take place because OF really urgent
necessity and the bold and daring attacks
OF operators for the fall. produced. u con-
dition of affairs that verged Oh panic.
Something more than a reference should
be made to the part that has been played
in the market by these short sales. They
have been on scale far greater than has
generally been underst God. One room
trader after another has been swinging
lines OF short stock. amounting in several
particular instances to $1,000 shares. The
mania to sell stocks that they did not own
on the absession that there was practically
no bottom to the market has seized hum
dreds of operators to whom such trans
actions have heretofore been q novelty,
and they have -pyramided" in this way
to an extreme extent.
A market condition existed yesterday. in
other words. OF exactly the same nature.
although OF reversed situation. as that
which existed little more than year ago.
Then the great mass Of speculatoH were
crazy to buy stocks at prices that were
regarded az absurd by people possessed
of experience in financial! affairs. Current
estimates OF vaiu, tnat cah only be de-
scribed az fabuiors were placed upon
securities. In TIE latter part OF last week
and on Monday the market was governed
by exactly the same sort OF hysterfa. but
the hysterie, this time, of pessimism and
fear. As is usually the case on such oc-
casions, the hour when public feeling mad
been worked up to this point marked the
elimination, for the time being at least, Of
the movement in prices that had been in
progress. Overnight the cloud passed.
and sanity was restored. Spectators for
the decline came down to business to-day
convinced that 1t was wise for them to
cover part, at least, Of their short contracts.
A larger class OF investment buyers than
ever throngsd to the bargain counter that
had been opened. and the perception slowly
dawned that the events of the day before
had been something Of nightmare. After
a few moments Of hesitation at the opening
OF the market-caused by some small selling
for the account of London, where consols
we're down to q new low record, and good
deal of anxiety over the fortnightly settle
ment was displayed--prices began to ad-
vance and continued their rise steadily
throughout the day, so that at the close
advances Of from ~ to s points we'd re-
corded in all the leading stocks. The
volume of transactions was nearly as large
as It was the day before. Closing prices
we're almost at the highest point.
~. Ky-.- a.