The Saint Paul globe., 1904-10-20
STOCKS co TUMBLlNG
REAcTIoNARY TENDENCY FINALLY
BREAKS THROUGH RESTRAINT
Professional Bears FAN Upon the Market
and Sharpen the DecIine-Weak Hold
.inqs Are Shaken out-Last Prices Above
the Lowest

NEW YORK, Oct 19.-The reactionary
tendency of stocks which was under re-
straint yesterday broke through mat re-
straint today and took on preclpltancy
during the afternoon. The Eeactlon mas
been long eXpeSted and needed no news
to explain it beyond the unwleldy proper
tions to which the long interest had ex-
tended and the consequent growth OF the
burden of realizing profits, which proved
too heavy for the usual supporting tac-
tics to sustain. Once the reaction was
established the professional bears gained
sufficient confidence to fall upon the mar
ket in the usual overwhelming faSh1on ana
thus sharpen the fall, with the result of
uncovering stop-loss orders and wiping
out narrow margins, thus shaking OUT
weak holdings and bringing stock on the
market in showers. The professional
hears showed their customary ability in
taking quick profit on the break and their
covering movements and the opposing tac-
tics of the room bulls caused the con1u- ~
sion In the late price movement But the
force of the reaction was none the less
clear and decisive.
The absence of any considerable re-
actions through the long course of the
present advance has been one OF its pr1n-
cipal features and has added to the sus-
picion of its artificial character The
movement today ought to serve as con-
firmation of the wider interest which has
been taken in the market in its late
stages and the liability of it to norma!
influences of reaction with the passing. OF
holdings from strong to weak hands
There was nothing in today's dealings
to show that any effort was relaxed 10
sustain the market and to hold prices
in face of the selling to take profits. The
buying of selected stocks was even more
aggressive and spectacular than hereto
fore and the stocks to be pushed were
heralded before the market opened from
the uptown hotels with the complacency
which has distinguished the present cam
paign in stocks In marked degree.
Furious Activity
Erie. St Paul, Southern Railway Atch-
ison, Reading and Leather preferred were
a different times churned into furious
activity and long strings of transactions
in blocks of 1000 to 1000 shares were
run through the market on a rising scale.
The determined selling of United States
Steel preferred was the first incident to
cause uneaSineSS, and was not checked
by the good tenor of the news from the
trade, including an advance in tube and
pipe and the cheerful expressions of the
Iron Age. An admission of new interest
to the directory of the Republic Iron and
Steel company occurred during the day,
but attracted little attention. The ru-
NOR of new interest in AtchiSOn took a
more specific form again, but without
continuation. The securing of a Mexican
loan by American bankers caused a good
impression
The routine news of the day was gener-
ally favorable to values. Money contin-
ued easy. Speculative circles have CEN
ter I'd much attention on a public address
by an influential banking report. owing
to the long interior discussion which had
been given for a week previous to it's eX-
pected optimistic tenor For this reason
its admonitory tone towards speculative
excess and its expressed opinion against
the warrant in actual conditions for the
height to which prices have been lifted
even at their present level may have in
duced some counter moves in the market
by those who had operated on the fore
casts of the speech. The new director
elected by the Erie board yesterday was
made the center of the flood of rumors
concerning that stock with which its early
" el1aia ecf J.T-irn
We're considera bly, above the lowest, but
the rally on short covering at the last
was not well held and the closing was
irregular
Bonds were irregular Total sales par
value, Sc, $4,000. United States IS ad-
Vanced Is per cent on call.