The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-17
SHORTS DRIVEN TOCOVER
AGGRESSIVE UPWARD MOVEMENT IN
THE MARKET FOR SHARES.
Even Steel and AmaIgamated Copper
Rise BuoyantIy-Banks Have Gained
i'm Cash Holdings.

NEW YORK, Oct 1.-THE bears were
driven to cover their short contracts in
the course of to-day's trading in the stock
market and before the close were in some
thing like a panic, buying in all directions
IN heavy volume. The early stages of the
rise were viewed with apparent compla-
cency by the large outstanding short inter-
est, in the confidence that the rally would
be unimportant, as has proved to be the
case so often Of late. Their confidence was
increased by the fact that Amalgamated
Copper made but feeble response yester-
day and this morning TO the dividend decla-
ration, although the outstanding short in
terest in that stock was believed to have
grown to very large proportions. An actual
decline of ii point in Reading second pre-
ferred on the declaration of its initial divi-
dend salso pointed to the conclusion that
good news was taken advantage of to liqui-
date stocks. But the fact became very
evident early to-day that the pressure of
liquidation was almost entirely relaxed.
Even the much-enduring industrials were
free from the recent indscriminate selling
and were suffered to hold up their heads
and make some scattering advances. The
bears began to discover that in offering
recent invariable success in dislodging sell
ing orders and inducing liquidation. There
were heavy portions of the market. not
withstanding this general tendency, nota-
bly, in the Pennsylvania group and the an
thracite carriers. The reduction in soft
coal rates to the seaboard, and reports of
the closing of additional anthracite collier
les were supposed to be the cause of this
he hui h. hot
these stocks were depressed to facilitate
covering in other parts of the list.
Beyond the cessation of the persistent
liquidation, there was very little news to
account for the turn in the market. There
was very favorable statement of August
earnings by Missouri Pacific. showing gross
earnings for that month of upward of
s4.ooo,OoO. an unprecedented figure. while the
increase in net earnings over last year
reached s295.oO0. A compilation of earnings
of over ninety railroads for August indi-
Gates that their gain in net earnings over
last year averages over 16 per cent. These
facts may have played a part in inducing
buying, although they have been consist
emily ignored for some time. The reported
contract of the United States Steel Corpo-
ration for furnishing steel to a great ship
building company in Great Britain was also
regarded as promising development. The
demands of the employees of Manhattan
| failed to create alarm.
Banks seem to have gained upward of a
million dollars of cash reserves for the
week, so that another weeks advance has
| been made without the development of the
customary Western demand for currency.
The arrival of the mid-October season is
| felt to insure the safety of the corn crop.
| But while these factors may have aided
| in the recovery, the dominant factor evil
| IDENTIFY was an aggressive leadership of the
| market against the short interest, which
| was made successful by the cessation of
| liquidation, the banks having apparently
| completed a process of clearing out unde-
| sirable collateral which they have been
pursuing for some time past. The rise of
| 35s in United States Steel preferred and of
| 3ls in Amalgamated made those stocks the
| market leaders. although there were some
less active stocks which showed larger adj
vances. In the usual prominent stocks
there were general advances of 2 to 3
| points, and the market closed buoyant at
I, the top.
| Bonds shared moderately i'm the strength
| of stocks. Total sales at par value were
| s3.S69.Oc0 United States bonds were I'M
changed the last call.
Following are the days share sales and
| the recorded price changes: