New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-16
REVIEW AND DIGEST
Improvement in Stock Market
Prices Follows Depression.
CALL MONEY MORE ACTIVE
Events of the Week at Home
and Abroad Present Compar-
atively Cheerful Aspect.

The stock market during last week
experienced one of those sudden re-
versals of form which have character
lied its action many other times in It's
history. The early part Of the week
was marked by serious depression and
prices melted away as the result or
combined liquidation and short SELL
ing. The factors which have hung IKE
a pail over stock market operations for
several months seemed TO be Offering
no signs Of a favorable turn, when on
Wednesday the National City Bank de-
parted from its ordinarily maintained
rate of per cent for call loans ana
offered money under the prevailing re-
newal rate Of 2% with the result that
call money went as low as ~ per cent,
and the Street suddenly became i'm
pressed with the fact that for tempo
rary accommodations money was plen-
tiful in Wall Street institutions
On Wednesday night the news was
sent out from Washington that Secre-
tary McAdoo had announced that tho
government had up to $500,0oO,0OO that
would be released under the provisions
of the Aldrich-Vreeland act should
bankers decide 10 take advantage CT
the emergency clause allowing them 10
avail themselves Of government funds.
This announcement and the plethora Of
funds in New York institutions, &C
cumulated in expectation Of heavy
! demand later when crops will call for
liberal financing, seemed TO be the es-
sential antidote for market pessimism,
and Thursday morning prices opened
both active and higher and the day
was one Of the busiest and most cheer
full that the bulls have experienced In
a long time. So far as the actual con-
ditions may be considered, the situa-
ton had undergone little change, and
there was as much reason for appre-
hension as there had been prior to
Thursdays vigorous rise.
Wall Street, however, had been ovor-
pessimistic, and the wholesale liquida-
ton of securities which had been in
dulged in, together with the vast
amount Of short selling, had placed the
stocks technically in such a position
! that only a spark was needed 10 kindle
a blaze Of enthusiasm in an upward di-
| rection, and the two events referred 10
supplied the inspiration necessary. The
call money market has been easy for
money was offered in plentiful supply
did not change conditions materially, as
brokers were aware OF the easy tone
of money for passing requirements, but
| there was no demand for these funds
so long as the stock market continued
TO be a selling rather than a purchas-
| ing proposition.
1t had been realized that with such a
volume of trading on downward scale
a heavily oversold condition was in
| evitable, but with the lack of any in
centive for a turn operators were
averse to making a move which might
result disastrously. and the market had
| been allowed to seek new low levels
pending the arrival of a period when
the opportune moment would present
itself for a bullish movement. During
| the remainder of the week following
| Thursdays sharp rally prices retained
much Of their flrmness and the market
had a decidedly more encouraging tone,
which was helpful 10 the spirits Of
traders, who have stood around watch
ing helplessly the trend downward.
hoping for the change which came at
last.
How far the recuperative capacity of
this movement may be anticipated is,
as always, the eternal question. Few
Of the disturbing elements were re-
moved. The prospect still remained for
high money this fall. and time accom-
modations were not freely offered.
What might have happened had a less
conservative course in the past been
pursued by bankers is another question,
but under the circumstances the clear
ing away of some extensions and the
refusal Of lending institutions to en-
courage new loans beyond very linn
tied range have kept the danger point
far enough removed to prevent any
thing like panicky conditions In the
future, barring unforeseen accidents.
The political situation, notwithstand-
ing Secretary McAdoo's rather adroit
public announcement as affecting the
business of the country. had not
frightened. and the tariff question.
whatever effect II was destined to have
before of an adverse nature presented
on Saturday the same degree Of pos
sible harm that it had previous to last
week.
The report Of untitled tonnage Of the
Steel Corporation, showing a decrease
Of 654 900 tons, gave some indication Of
the restriction which has taken place in
| Industrial lines, although for the last
week the reports from steel and iron
trade centres told Of the beginning Of
an improvement in activity and a
promise Of some betterment in the pig