The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-07
FINANCIAL NEWS
AND COMMENT
Persistent RumOrs Of Rate De-
cisiOn Lead to a Violent
Advance.
OUTLOOK is IMPROVED
Order for 10, 300 Steel Cars the
Largest Transaction Of Its
Kind i'm Months.

The extraordinarily swift and violent
advance in prices yesterday seemed to be-
due to one factor, namely, the persistent
rumors that the long hoped for decision In
the advanced freight rate case would be
handed down after the close OF business.
Curously enough, there was nothing to
show that these reports had any more
basis in fact than earlier reports OF the
kind But the fact that the stock mar
ket made "a most decided and impressive
response thereto probably gave them an
Importance they were not entitled TO. Tho
rise in the market might very well have
been brought about by manlpuati'o
move against the short account based on
the effect OF these expectations. II that
theory IL to be considered the correct one
all that can be said of the AFFAIR Is that
no such campaign could have been effec-
tive had there not been pronounced
scarcity of stock Offering.
The principal item OF news during the
day was the failure of "A London bank
ing Arm which has figured lately as the
centre Of disturbance In that quarter. This
incident presumably Is to be welcomed as
helping to clear the atmosphere on tho
other side aud closing firmness on the
London exchange tended to confirm TINS
View OF tho probable results. In other d.
placing OF orders for 10000 steel cars by
lhe New York Central and Illinois cen
tral railroads, this representing the
largest transaction OF the kind for many
months. and by the usual week end stalls
tics of trade and business, which Indicated
" tangible II moderate improvement In
several lines notably In the New England
textile Industry.
The bank statement exhibiting an In
Sreasiu. accumulation OF cash at this
centre. adequately explained the further
rise In sterling exchange and the course
OF time money rates noted on Friday. In
optic of the weeks gold exports cash
holdings Increased over S5,oOO,OOO. The
loan account showed reduction for the
third week in succession and tnO net re-
suit was iu Increase in the surplus re-
serve OF SS,2i5.V00. bringing the actual
reserve up to $40. 229,GO0.
Broadly speaking. Wall Street contin-
usd In the doldrums last week. with 1.
vast amount of Unnecessary argument
going ON concerning many matters. Prob
ably little significance attached either to
the weakness OF prices early or to the re-
coycry later The outstanding feature
OF the market was Its dulness. small
volume OF business made big impress
sion on quotations. That was about all
The TRADING was almost purely profess
sional, with the great majority OF Sc
curity holters holding aloof. Develop
mcnts at Washington In regard to the
Mexican muddle and other matters was
4 repiessiVe influence and the early SELL
ing may very well have been due to a
species OF political skill as much as any
thing. The foolish remarks OF Secretary
Redneld on the business situation com
Ing on top OF President Wilson's express
slons on the same subject were not cal.
culated TO improve the financial temper.
Wall Street has passed the state where
such incidents are regarded as amusing.
Their repetition Is beginning to be pain
full Nevertheless. viewed solely as at
tempts on the part OF the Administration
to defend It's position. they are not with
out modicum OF consolation. Uneasi-
ness at Washington over the state OF the
country's business should perhaps make
for conservatism rather than otherwise.
From the purely economic point OF view
the situation appears to be Strengthening
daily. Agricultural conditions as Of
June took IA slightly unfavorable turn
but II Is obvious that nothing has oc
Cured to spoil the prospect OF bumper
crops Current trade returns outside o.
this city are running somewhat Larger
than at the same time year ago. TIT
financial situation abroad is still great,
disturbed, but the signs are that thing
are gradually moving toward settlement
The fall OF the French Ministry, whll'
not expected, upset the Paris BouHse
quarter and the state OF Russian inance
was blamed for additional weakness II
tho foreign markets. London's loca
troubles appeared to be coming to ;
head. Cause for encourag cement wa
found IN the evidence Of a more or les
completely liquidated condition In Bra
lillian financial affairs. The gold sen
from this side has undoubtedly done mucl
TO relieve sentiment abroad. Tho recep
ton accorded the St Paul's issue of $50,
100000 "A per cent. bonds threw
favorable light on the state OF the In
vestment market here.
The extension OF the Missouri Pacih
notes helped the local market situation
by averting immediate trouble, although
II In recognized that the main problem
OF the road under Gould ownership vii
sooner or iater have to be solved. he
newed liquidation In New Haven roc
brought on,e again TO the fore the hlghl
unsatisfactory New England railroad stu
alton, although It seemed that the innu
ence Of this matter has become more o