The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-17
FINANCIAL NEWS
AND COMMENT
Stock Market Tested by the
German Naval Attack on
England.
LIST QUIET AND STEADY

Opportunity for open and immediate
stock market reflection OF important de-
velopments in the war was furnished yes
terday for the first time since tho out
break OF the war. The news OF the Ger
man warship raid on tho English coast
reached Wall Street shortly before the
beginning of the stock Exchange session.
and certainly this constituted about as
sensational information as has como from
Europe in moro than two months of mill
tary man9uvrings. So far as quoted
values are concerned the response which
was ELECTED seemed to furnish further evil
dencs OF tho satisfactory stability which
the financial community has recovered in
the process OF adjusting itself to the cir
cumstances Of the war
Speculative operators in securities com
plain that the protective minimum prices
deter short selling and that therefore the
situation Is not subjected to the full test
which the market would undergo II trad
ing wers free OF all restrictions At the
Same time many issues are ranging at
prices several points above the minimum
level and there is room for both specula-
tive undertakings and for the downward
offering of investment holdings in order
to find buyers. Tho truth of the matter
seems to be that speculative enterprise Of
a bearish nature Is prevented by tho evil
dence afforded that there is no specula-
tive long interest TO be upset and that
only investment liquidation can be counted
on to furnish a leverage for operations on
the short SIDE while such liquidation
makes a most reluctant appearance.
OF this yesterdays market supplied
fairly trustworthy signs. No excitement
was aroused by the war news. there was
no disposition toward stampede OF SELL
ing and the indications were that securi-
ties, both stocks and bonds were not in
n position from which tho holders could
be stampeded readily. The market indeed
acted very much as a thoroughly sold
out and oversold market would be eX-
pected to act with quotations ruling at
a great depression from anything like nor
NAL figures. 1t did very little.
The volume of dealings contracted to
about half the average of tho previous
sessions since Stock Exchange resump-
ton and the tendency OF trading was to
fall Off more or less continuously after
the first hour Initial transactions man
Tested a declining trend which was quickly
halted when II was seen that little or no
real liquidation was coming is, ana there,
after a rally ensued which was held until
toward the close, when prices sagged mod
erately In various directions,
As a whole the list deserved TO be called
steady. with unquestionable tokens OF un-
DERIVING firmness? Moreover some bidding
up OF Industrial shares showed that OPP
timistic impulses were not altogether in
allegiance. In general the marketwise re-
Election OF the war advlces was In most
contrast with he conditions
which existed at the end OF last July
and showed how completely financial af-
fairs had been reconciled with the fact
Of the war and what capacity they had
acquired for accommodating military
events. These conclusions do not in any
way affect tho probable behavior OF val
ues as definite stages are reached in the
war; but they are warranted in their pres
emit application.
Wall Street attention OF course was
more or less exclusively occupied with
the overshadowing considerations involved
in the German naval attack and the Brit
ish answer. 1t may he that one reason
why the share list was so steady and
quiet was because of the feeling which
was clearly manifested that the naval de-
could only he the prelude to the
last stages OF the desperate conflict in
which all Europe is engaged, and as such
more bullish than bearish in their impli /
ca atoms. Aside from the war. though, there
was intelligence bearing on values which
deserved some notice.
The country's foreign trade statement |
FOR November did not dsappoint expcc- !
tations. 1t is true that exports were al !
most s4o,000.O00 below tho corresponding
shipments last year but imports declined |
more than SCI 900 and an export bal !
ance In excess OF 1000 900 resulted. |
which was an Increase OF about $4,000, 900 !
over the trade balance in October last. !
The cotton shipments reported for the day |
Were almost $4,000 bales. the second larg- /
nst of the season, and tho cotton market /
showed strength which evinced good buy /
ing explained by the export figures.
The Michigan Central dividend was cut
from the rate OF per cent a year to . |
per cent. a year. but the regular quarterly |
dividend OF . per cent. was declared on |
common. Reviews OF the steel /
trade were concerned with the possible |
ties of wage cuts, but wage reductions
may be averted II corporate finance re-
,eives tho announcement which would he |
Impaired by a favorable decision in the |
railroad rate case now await !
Ing determination. There were no signifi- |
amt changes in the domestic or interna-