Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-16
FINANCE AND TRADE
Short Covering Caused Sharp Rise ip
Prices of Stocks.
GOLD SHIPMENTS CAUSE NO FEAR
Belief That This is Merely Tenn.
porary Rally.
GENERAL MARKET REPORTS
Special Dispatch to The Evening star

Special Dispatch TO The Evening Star
NEW YORK. May 16.-The covering of
short contracts upon a somewhat larger
scale than formerly forced substantial
recovery in todays stock market. The de-
mand came from a special clique Of brokers
who have lately been extremely pessmistic
in their views and market commitments.
The change in sentiment due To fail
to force further liquidation in the rail-
way department.
Engagements of gold for shipment by to-
morrow's steamers aggregating S:.a0.npb.
instead of alarming the street. were used
a basis for covering. The first announce
ment of the intended shipment chilled the
market, and quite a demand against previ-
sales was Immediately undertaken. The
buying was especially effective in AtChlSon
preferred. the Pacific issues and the Grang-
The entire railroad list responded
easily. but there were evidences of
increased plblic interest.
4 rally was due. however, and sellers
were less anxious to force stocks upon the
market. The upward movement should run
until the short account has been practically
eliminated or materially reduced There
few judges of the market who predict
more than rally at this time. The
with which prices rallied today. however.
beyond the covering limits or renewed dull
ness at the higher level.
In the industrial department there is
much confusion owing to the political out
look and the prospects for radical ANTITRUST
provisions in the platforms Of both parties.
BY some the recent declines in this market
are considered ample for the changes in
trade conditions and any probable legisla-
tive hostility. Others are less sanguine on
the latter point and refuse to accede to
m tpS of al,tn 1-ayx Of ,nl,
attacks.
In view of this mistrust of the industrial
properties it would seem probable that such
new business as might be attracted to the
market would center in the dividend paying
ter which are selling at attractive prices
from an investment standpoint. and would
undoubtedly find ready purchasers in less
confused speculative prospect.
The tone of the market during the final
trading had every prospect of running into
a decided movement. but owing to the pro-
fessional character of the dealings commits
sion houses hesitated to change their previ-
Gus views and adhered to the idea that a
rally was all that was in prospect
The gold engagement may be followed by
further shipments later in the week. hut
the bulk of the outgo is believed to have
been provided for in tomorrow's consign-
ment. The amount sent tends to confirm
the rumor that about S3.oOo.poO We're to he
shipped for five successive weeks In order
to complete an arrangement with the Bank
of France. The amount be spared by
local banks, and this knowledge has much
to do with the present Indifference to the
outflow. With surplus reserve of about
Si',"""s, the banks are shipping gold to
Europe and lending money at home at .
pc cent. The comforting features of such
a condition depend mainly upon keeping
speculation within small bounds.