The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-05
FINANCIAL NEWS
AND COMMENT
Rate Case Rumors Induce
Further Professional Buy
ing of Stocks.
STEEL SHARES ARE FIRM
Somewhat Unfavorable Foreign
Advices-MOrc Gold Ex-
ports Likely.
STEEL SHARES ARE FIRM

In yesterdays and Wednesdays trad
ing the aggregate volume OF business
equalled the dealings of Monday and
Tuesday. but the price level was not fully
restored Mt last nights close, although
recovery continued during the session. The
most nggressively strong shares were not
OF class to provide good leadership for
the list. although a supporting influence
was eNerted by the conspicuous nrmness
Of United States Steel and the minor steel
issues
II any OF the price movements were re-
lated to current news the course OF the
various steel issues might have been at
tributed to renewed expectations OF for
ward buying in steel lines In the course
OF the next few weeks These were
strengthened by reports that the Steel
Corporations business 10 far this month
was at substantial gain over the May
rate and by indications that the railroads
were Mt last in the market with equip
ment orders. Pacing OF contracts for
the delivery OF freight cars to the New
York Central lines has, II liz said, al
ready begun on the largest scale since
early last year. 1t is favorable time
for railroads to buy but II is doubtful II
their purchases will represent anything
more than bare necessity until the East
ern rate case has boon passed upon by the
Interstate Commerce Commission.
Lchigh Valley remained persistently
heavy. while varying conjectures were In
dulged as to the dividend prospects OF
tine stock, but the general tone OF tbs
stock market was firm The feeling that
IL crops were good there Is bound tC
be some Improvement In volumes and val
ues In the last half of the year. especially
II signs OF a political change are dis
cernlble, encourages the professional trad
ing community to seize on any optimistic
! incentive that offers, and attacks of po
litcal ch!lls readily give way 10 rccurren
fevers OF hopefulness.
Wall Stree; yesterday was flooded with
cheerful rumors about the Interstate Com
merce Commissions attitude toward tn,
Eastern railroads "a well as of some othei
indefinite good to come out of Wash
ington. Apparently this was enough {,
stimulate professional buying and shor
covering. Any rcassurancos OF the kind
event though they lack subsequent cor
roboration, are likely to prove in tn,
present state OF the trading mind a some
what effective antidoie 10 tine politica
poisoning OF financial sentiment.
The Wall Street feeling Is that tn
stock market wants to go up. howeve
| discouraging immediate circumstances ap
/ pear and therefore developments in tn,
/ line of suspected tendency seem to b.
| more potent within ;he limited range o
/ present fluctuations than are adverse con
slderatons. 1t does not seem TO BE- neces
slry that the developments shall con
! stitute actual facts. Imagination an,
| gossip will apparently serve for wan
! OF something better. The close OF tn
! market was quiet. although there was M
| marked loss OF firmness.
Some rather unfavorable advices wer
| received from abroad, London was de
scribtd as reactionary. with Paris weak
| and foreign finance was reported to b
somewhat uneasy over the TROUBLESOME
situation in Russia. Tho Bank of Eng
| land made a statement that could onl
! be viewed as unsatisfactory for thi
/ season of the year. and 1t seems NANTES
that the bank must take steps short
to strengthen itself against the demand
| OF the autumn. Its position Is such as I
| denote the probability of further gol
| exports from this side and foreign eX
| change display ed strength. with denan
sterling above 4.SSas. The local none
i market showed increasing softncss, an
| II Is clear that domt site banking cor
|
Because for the moment attention wa
engaged with hopeful political possibll
ties. the prevailing nature OF political II
hutnces did not enter much into III
superficial marketwise comment of III
day. In substantial financial circles. how
ever. no relish was expressed for III
extraordinary muddle into which Mcxica
negotiations have been precipita:ed, an
there was less liking for the frenzic
radicalism which ~ animating the d,
alterations OF Congress over the bushes
legislation on which the Administratio
IL insisting. The observations of JudE
Lovett and other railroad executives G
the destructive import OF pending mca
ures may warrant some conviction thu
utterly disastrous legislation cannot
enacted, but the atmosphere of unce
tainty which 1t Is creating is not col
ducive to the restoration OF Finances
confidence.
} Incidentally II may be remarked tn
the additional testimony which is b
ing elected in the New Haven inquil
is spelling the picture painted in =
Mellen testimony. II Is doubtful II tn
! is altogether agreeable to the promote