The St. Louis Republic., 1903-06-22
Recent Scare Is Dissipated, but
Confidence Is Not Fully
Restored.
MONEY MARKET SEEMS SOUND.
UverproductiCn of Securities Held
Responsible for Heavy Liqui-
datiOn-Big Financial In.
tereStS Bolster Market.
EE7TBLTC SPECIAL.

! EEfT- BTtC SPECIAL.
New York. June 2l-Stocks acted during
the past week in 4 manner which should
! have given satisfaction 10 both parties in
the market. II there was any advantage
noticeable. however it rested with the forces
/ operating for further decline in prices.
! This seemed natural enough in view OF the
! process q settlement and adjustment which
follows & sudden turn in stock-market af-
I fairs
! For a period Of nearly eight months the
stock market has undergone steady and
| heavy liquidation. Toward the end this
| iiquiGatins movement met with considerable
| resistance. but such was Its cunluIated force
that it was Only by a concentrated and pow
erful stroke that the current threatening
| financial destruction was DETECTED. Nothing
! has occurred during the past week which
would finally determine whether the natural
course Of the market was toward lower
| level or otherwise.
Prices were highly irregular. rejecting the
| unsettled condition of speculative sentiment
and the lack OF a fundamental guiding
force. which is yet to make its appearance.
FRIGHT DISSIpATED.
From the volume OF business transacted
on the course of the security market it was
evident that the fright which was extend
| ing over the length and breadth of the land
and even across the seas. has been pretty
thorcushly dissipated
Confidence however. has not been thor
oughly restored as Yet. and the present sit
uation is akin TO that which follows a run
on bank. Wall street has seen wealthy
interests and security makers go into the
open market and buy freely and openly in
a manner which suggested the action OF
bank Inanasers in piitng high on their coun-
ters the gold and currency with which they
hope TO establish confidence in the minds
of the frightened dspositors
SO far the action of the important tinan-
cIa! interests in openly buying stocks at the
present levels has had the effect OF stopping
the heavy liquidation and preventing many
from selling securities which they had de-
CiGec TO throw on the market. The word
mas gone forth that the financial situation
is sound. and as yet nothing has developed to
indicate IN the slightest measure but that
however. some belated liquidation which
upon the recovery in prices, sought the oP-
portuntty to vent itself.
At This point however. the question is
asked, has that factor which produced the
inceSsant liquidation through which the
market passed been entirely removed?
On this point there are now two powerful
parties. who hold opposite beliefs and
theSe factions are apparently willing to
the stock market. The vacillating character
OF price movements during the last week
Will probably continue until this question
mas been absolutely settled.
TOO MANY SECURITIES.
There is an undivided opinion that the
overprOduction OF securities. both good and
bad. played an important part in tie
liquidation which was brought TO so sudden
q turn IL the week ending Saturday. June
-. he imitation Of Older and well-organized
companies also played its part The count
less evils which attended these two factors
when in their full growth have VET to be
remedied. even should one go so far as to
say that The matter of imitation has been
cured. and that death blow has been dealt
TO promotion schemes FOR some time 10
come. The recovery from these financial
eXcesses is a matter OF slow growth.
There is nothing which the conservative
banking interests OF Wall street would
better appreciate at the present time than
that the stock market convaiesceuce should
proceed in such manner Their action
during the past week in stepping into the
market and again absorbing stock when
they fell 10 level at which they bought in
the previous week indicates their faith in
the strength Of the market to recover. At
the same time. however. they hold out
the hope that there will be a quick recovery
such as the professional element of Wall
element Is a unit in stating that there is no
asts for a general advance. that the patient
Is in too weakened and deblitated a con-
dition from previous eScssses to sSpsCt s-,Ch
a quick recovery.
Under these conditions il is safe TO as
sumo that the workings OF spscula tive pools
such as were the feature o: the summer of
1902 will receive but little support from In
fuential interest this year