The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-03
FINANCIAL NEWS
4 And COMMENT
Slight Reaction in Dull Market,
With Little Liqui-
dalton.
STRENGTH AT BOTTOM
Brandeis Admission Regarded
~ Favorable Sign by
Railroads.
STRENGTH AT BOTTOM

The reaction that occurred IN prices
yesterday might be said to have been
called fer by the simple mechanics Of
market movements. The violent uprush
during the week had plainly weakened
tschmcal conditions But while the mar
kee was thin one and fairly extensive
setbaclEs were recorded. II was noticeable
that little stock came to market and that
guinness was the outstanding feature. The
nsws Of the day. particularly that relat-
nc 70 AFFAIRS at Tampco, did not an.
peAf 70 exert any special influence Of ito
own. Early London prices after the holi.
~ there did not come I'D 70 the full
extent OF the advance here. But London
apparently did little or nothing in this
merkee Particular weakness In Amalrs.
mated and the other copper shares was
attributed to expectations OF poor show
u8 70 Do made by the Anaconda report
soon to be published. Persistent weak
ness In the Rock Island securities was
oUoentiy In response to a growing feel.
ING that the Mckenna estimate Of tho
financial requirements Of the property
viii place them at a higher figure than
has been anticipated. The banl, state.
ment did not bear out the usual foreca sts
accurately. especially in regard to cash
noao'nge But coming Immediately after
inc nrst OF the month IL must be "a.
eeroed as favorable in the main. News
o. the export Of 100000 gold 10 Paris
caused no surprise.
The change in the Mexican situation
0eutained In the proffer Of mediation bv
me South American countries appears
y nave furnished the specific excuse for
sne SUBSTANTIAL recovery that occurred in
me stock market last week. But I'M
ooooteoly the real reason for the ad-
ence was the fact that once again the
eSock market had become badly oyersold.
Tho prolonged decline In prices had de-
pressed speculative sentiment beyond all
reason and tho result was a thorough dis
counting of all the most adverse poesi
oiuties This. supplemented by European
nouidaion on a heavy scale. caused q
complete shaking out OF weak accounts
and a shifting Of holdings from timid
70 more courageous investors. The stock
market was thus placed In q position
70 respond to the least announcement in
the way Of news.
Tho result was . general rise in prices
approximating points in the average
ana from = to points In the leading
stocks. The manner In which this dras.
tic upturn was maintained reflected favor
ably on the genuineness OF the foundations
for the rise. At the close Of the week
the movement gave the impression Of q
very definite turnup in prices.
~osNec ZIG NhcAiCdH BltubtlOn ynefe
were several other matters calculated to
stimulate sentiment In Its more receptive
mood. Curiously enough the most i'm
portant OF these. the developments In the
freight rate case. seemed to be less a
FACTOR than might have been expected.
Indeed the remarks OF Mr. Brandeis.
broadly speaking. seemed TO qualify the
cheerfulness rather than otherwise. This
10 noteworthy because, whether or not the
point was tacitly admitted before. the con-
fession In open court by Mr.. Brandeis
~ to the railroads positive need OF higher
rates undoubtedly has direct bearing
on the attitude Of the commission. Mr..
Brandeis has completely reversed the po-
aition taken by him in 1910. when he
claimed that the railroads could save
100000 day in operating expenses
alone.
A. far as the European markets are
concerned the new phase presented by the
Mexican situation appeared to have much
tho same effect as here and probably for
the same reasons The completion OF the
much dreaded twenty-one day Stock Ex-
change settlement and tho apparent
solution of tho Ulster problem un-
doubtedly helped financial sentimen:
in London and had much to do
with the cessation here OF foreign ilquida-
ton which was so disconcerting a week
ago. There also appeared TO be a sub
sidsnce Of fears over tho European politi-
cal situation. At any ratio consols re-
bounded sharply and French rentes and
ether Government securities improved In
q decided manner.
Other matters upon which . favorable
construction was placed were the decision
handed down by the Appellate Division
Of the Supreme Court refusing to restrain
the Union Pacifcs proposed melon: cir
cumstantial reports Of an investigation on
the behalf of important banking inter-
ests leading to the inference Of a change
In control a better tendency to railroad
earnings exhibited in the March state
Ynents Of several important Eastern ana
Western systems: the progress made by
the New York Central In Its consolidation
plan; the failure OF the Steel Corpora
tion's quarterly earnings 20 come up to
the most doleful expectations. and lastly
highly favorable data on the crop pros
pocts.
AZ regards the Immediate future Of the
prices Il 10 worth while to bear In mind
that the market has a great deal OF dras-
ito liquidation behind II and for that rea-
son IL probably in a fairly healthy condi-
ton.