The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-09
FINANCIAL NEWS
AND COMMENT
Selling by Professionals Fca-
ture of Depression in
Stock List.
SOME FOREIGN PRESSURE
Missouri Pacific Notes Still to
BE Financed-Copper
Supplies Increase.
SOME FOREIGN PRESSURE

OF more or less unfavorable news yester-
day and some selling pressure was started
by a renewal of foreign liquidation. The
market as whole declined stubbornly.
especially among the standard shares. and
was at all times heavy rather than weak.
The weakness exhibited was confined to
special descriptions and the selling
seemed in bulk to be Of a speculative
order and OF professional origin.
The indications were that interests and
individuals who were buyers on tho ex-
IRENE weakness a fortnight ago were pre-
pared to make purchases again on the
setback OF quoted values. especially II II
should run somewhat further. There has
been nothing in the market factors to
induce accumulation at advances but
there has been enough evidence Of under
lying change in important financial atti-
tudes lately TO suggest the likelihood Of
willing support to the share list in declin-
ing periods. There are many disturbing
and adverse Influences in the field OF
values, but there are elements OF great
Potentially for the better. and we'll sea-
soned stocks have not been SO easy to
buy in the last few months that persons
equipped with buying power should forego
favorable opportunities to acquire them
to advantage.
Trading yesterday expanded again. but
fully one-fifth Of the total was accounted
for by the transactions in Missouri Pa
cifc. The pace OF reaction which began
TO be apparent on Thursday was acceler-
ated over night by the declines established
for American shares in the London
market and by subsequent foreign selling
here. The difficult situation In n part
OF the French banking community, which
is suffering from the overextension Of
American and other countries, was the
obvious cause of the recurrence Of weak
ness in the security markets abroad.
1t Is not believed that the troubles at
Paris will assume any great proportions.
but while the French situation remains
in a state OF doubt IL is to be expected
that 1t Will communicate unsettlement to
other centres. The continental scramble
for gold is related to the Partisan diff
culties, and for that reason II is fortunate
that our own banking position is in shape
to furnish whatever relief can be extended
abroad to substantial gold exports IL they
become necessary. The course OF foreign
exchange yesterday suggested that next
week gold coin might go out.
Discounts rose in London to the level
OF the bank rate and the advance in de-
mand sterling here to 4.ss90 was re-
Spouse not only to discounts abroad but
was also a reflection of the further for
eign selling Of American securities. The
situation produced no effect whatever on
the local money market and the easy
condition OF the local banks was empha-
sized by the preliminary estimates Of
cash changes for the week showing a
gain of S7.0oo.000 or more.
Mexican affairs looked decidedly bad
In the sense that they seemed TO portend
| the inevitability OF our military interven-
ton on large scale. At the Same time
the prospect did not evoke apprehension
in financial circles. where such interven-
/ ton is not regarded as the worst thing
that could happen.
Financial belief has long been that the
Mexican crisis could only end in definite
action by Washington, which would COM
pei a solution Of the whole Mexican prob
lem. and while hope of a peaceful solu-
ton has persisted II has been recognized
| that force would probably have to be used
eventually. Unless Europe is upset by
Mexican events it would appear unlikely
that anything which happens on account OF
| Mexico will prove seriously detrimental.
SO far as the stock market community
was concerned very little indeed was said
yesterday about the Mexican fmbroglio
nor did 1t appear that domestic politics
figured to any extent in the stock market
| reckoning.
1t may be that Wall Street has taken II
| for granted that the Administration
| legislative programme IL going to be put
through at the present session or Congress.
| and the stock market therefore may be
preparing itself to make the best OF the
| lNa,t, nfAa
latest of the Administrations business
affecting measures. the bill for regula ton
| of railroad security issues, has, like other
measures In the category or business
legislation. merits as well as defects. One
| thing which this particular bill could ac-
| complish II enacted into law would be ia
establish "A degree Of Government respcn-
slbility for railroad financing. and such a
| responsibility could hardly fail to react
| favorably on other processes OF regulation
| Chesapeake and Ohio was "a weak
feature OF the share list because OF the
spreading conviction that the dividend
must be reduced The troubles OF this and
! a few other corporations were reflected In
| the general unsettlement OF the market
but none of these things Is of permanent,
| consequence to the average OF quoted
values They all belong in the category
| OF matters which Wall Street has beer
accustomed to for many months past. The
case OF missouri paclhc attracted all DAY
the widest attention and the dealings In
the stock were rather remarkable
II was not until after the close OF bust
ness that q definite announcement wa.
made, although IL was understood durinl
the session that Kuhn. Loeb x Co, ha,
decided not to undertake the financing o
| the $o5,00O,O00 of Missouri Pacific note
| due June !. There are two aspects o
| the Missouri Pacific problem, one tempo
| rary and one permanent, and last nights
| announcement relates merely to the tenn
| porary phase of the problem. The terms
| of the bankers declaration was such n!
| to permit an inference that the question
| of the permanent provision for the Mis-
| souri, Pacific's future was still open 4
| negotiation, although II was inferred tina
the continuance OF negotiations depeLde,
on the length to which the owners OF th
hard pressed property are willing to NEE
the conditions which sound banking judg
ment must impose.
1t was not until after the close of bust
ness that II became known how much o
| n modification of early cash requirements
estimated as necessary for the Rock Island
| had been effected in the conference he
| tween the Rock Island management an,
the expert employed by the collateral trus
| bondhoders' committee.
Among the matters of markctwise in
tercst included in the days news bulge
was the idle freight ear report AS OF Ma,
| |, showing nm increase of 5000 ears Il
the net surplus In the last half of Aprl