The sun., 1913-12-13
FINANCIAL NEWS
AND COMMENT
More General Weakness In Stock
Market. With Increase
"f Activity.
NEW HAVEN GOES LOWER
Some Favorable Developments Is
InrlIidc Discount Rcduc-
tiOn in Germany.
NEW HAVEN GOES LOWER

Stocks ended In weakness Yesterday.
The lowest prices Of the session were
made toward the close and Anal figures
showed an extensive array of substantial
net declines. The downward movement
seemed to originate In n moderate amount
Of steady liquidation converging on the
New Haven shares. which went to new
low price. and on few other issues which
have not lost and are not likely to lose
their investment character. but decline
was accelerated by speculative selling.
Professional pressure was stimulated by
the continuation of liquidation and by
the obvious heaviness which the list dis
played in the late forenoon. An increased
supply Of real stock In the market had
been denoted by the developments of the
week and II was apparent that buying
power WAS not equal to its ready absOrp-
tion except perhaps at concessions. II
was noticeable also that the dealings ex-
panded as the market weakened. total
transactions making new high aggre-
gate for the week NO far.
Some of the overnight and early news
of the day was favorable to quoted values.
Advices from the iron and steel trade were
encouraging i'm that prices had begun to
display a harder tone. with some new
business under negotiation. quite large
supply of copper metal seems also to have
been moving lately. and SO far as the
domestic news budget was concerned
another fairly satisfactory item was the
Government cotton report in the after
noon. giving the final estimate for the
1913 yield as l3.67T.ooo bales exclusive
Of lintcrs. n crop which compares more
than well with the average OF the past
decade.
The early advices from abroad were
also encouraging in that they chronicled
another reduction In the Imperial Bank
of ';crmany's discount rate. few
weeks ago the rate WAS lowered from 6
10 -, per cert. aud IT is now . per cent
bf course the change In the Berlin bank
rate Is deprived OF Il good deal OF signti-
calicc for the worlds money market as long
rs official discounts at London and Paris
ar" firmly maintained. There is also prob
ahlc validity i'm the .ondon opinion that the
Bank of Germany is seeking to assist the
German trade and industrial situation
against the forces making for depression.
and IL is rather striking fact that the
Berlin stock market was weak yesterday.
The same kind OF weakness followed the
first downward movement OF the rate this
year.
stocks We're hcavy at Paris and heavy
to- weak at London in response to com
mon European Influences as well as to the
wall Street uns.ttlement, hut easier dis
counts AT Berlin cannot for a moment he
regarded as bad monetary sign. On the
contrary proof is afforded thereby that
AZ ON. important point of strain in the
past year tension has materially relaxed.
The postponement Of the French Govern
ment loan is apparently to be accompa-
MED by official permission to undertake
other financing. and presumably after the
turn of the year European finance gen
orally will begin a campaign with more
49,, st,,,.. l, IA
year OF ending in something Ike normal
movement of cash and credits.
1t was not. however these things which
dominated Wall street considerations. II
is auit. plain that the New Haven col
lapse had had depressinS sentimental
effect on further reflection and some
symptoms wer. discernible which inn
piled an unwarranted disturbance of in
Vsstment positions in other securities
The promptness with which radical agita-
tors at Washington and elsewhere jumped
into the situation with demands for a
lot of Congress sional activity in connec-
iion with the New Haven affair and
with clamor about damage suits was
presumably an inevitable aftermath. but
IL had IA disquieting stock market result
Nor was there any particular wisdom in
the proinulgation of opinions that the
New Haven dividend would not be sus-
pended long, What the financial com
hlufllN ne'uS IlpIt titll any tiIiIe tiN'
AT this time is to dismiss from its mind
the thought of boosting values by prOc-
esses Of disbursement TO the holders OF
corporate securities and 10 its attention
on the values which will in time accrue
from expenditures devoted to the upbuild-
ing of property.
Rumors current in the last few days
that the New York Central contemplated
, some new financing were confirmed in the
authorization sought for an issue of $10,-
700. 900 of A.. per cent. equipment notes
to he sold on ~. per cent. basis II
was announced that the Illinois Central
had sold TO bankers S10.0O0.o00 of sub
/ sidiary line 3 per cent refunding bonds
about half OF which were to be placed
abroad. the issue being part OF total
| Of sl2O.OO0.00 000 OF bonds authorized for
| the Illinois Central system at a special
| stockholders meeting held yesterday,
! The circumstances OF the money market
cannot be altogether unpropitious when
such undertakings are arranged Call
money renewed at Az per cent. which
| was the days maximum, and on the known
| oh, h.. 1prn hnt,