The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-26
FINANCIAL NEWS
AND COMMENT
Stocks in Wall Street Rally De-
spite the European War
Clouds.
DECENTRALIZATION ABROAD
Engagement Of $4,000, 900
More Gold for Export
Jump in Wheat.
EMORALIZATION ABROAD

~ the Wall STREET stock market rx-
pressed to any extent the judgment OF
he local financial community yesterday
on the distressing aspects OF the Euro
poau situation It was that the balance Of
probability strongly favored avoidance Of
the catastrophe Of war involving the
European Powers.
Financial Europe was reported TO be
IN n state OF great excitement when wall
street resumed business and the markets
abroad were very weak Real demoral-
zation was reported on the Continental
bourses and London closed at ext,"slve
declines, with prices around the low
levels. American shares suffering losses
OF TO . points or more in the general
slump. a fail OF almost . points In
British consos. with French rentes down
TO IS, was evidence that Europe was
taking the gravest view Of the possiblll-
ties Of the tense situation precipitatcd by
Austrias note to Scrvla. The difficult
posture OF affairs In the Irish homo rule
crisis was. like everything else abroad.
uvrrshadowcd by the dark war clouds
which rolled up in the European south
cast.
Nor for that matter was anything else
considered her. although It was mani
Test that the underlying sentiment of
wall street was colorcd by the basic
reason. which offer for regarding Ameri-
IAN values as practically on thu bottom,
Gnl,ss they become involved In the tragedy
of European Armlgoddon As Arma-
Eeddou is, in "A stock market way OF
sp,ah.ug. something which cannot Ice dis
counted. tuer' was no inclination TO un-
load long stocks or to increase bearish
commitments. on the contrary. the Wall
Street short interest took advantage OF
m expected and profitable opportunity
which was suddenly presented to retire
b,arish contracts. and short covering CON
;r.butcd a large measure OF support to
quoted values. ~ j. doubtful II any
other Kind of support was needed, al
though there were some indications that
.nrlN protection was extended TO leading
issues 10y way OF precaution against un-
warranted decline.
Again wall Street refused TO follow
foreign initiative In the establishment OF
'he trading level Of prices. The market
opening was below Fridays close. but
only In few stocks in the International
81. notably Canadian Pacific and North
orn Pacific. was there sharp recession.
nm the very early dealings IL became
manifest as in the Rock Island securi-
IS New Haven and New York Cen
tal. that previous liquidation had al
ready discounted a great deal Of advor-
s!ty. and before the end OF the first hour
9n all round rally of a half point or
more from the initial depression was
,'fcc.ed
la the second and last hour recovery
WsS carried further although ON less
active transactions, Reading being one
~ tho influential leaders OF the upturn.
and the close was quiet but strong. with
a rather encouraging array OF fractional
fHa. IN,.t. A.. III
ug from Europe was less than had been
expected. and there was not much owl
dcnce Of apprehenslvc realizing on the
part OF domestic holders of stocks The
contingencies OF the dangerous juncture
1broad were such as to preclude a dis
position to take n decided speculative or
Investment stand one way or the other
n the short week end session, bu; APP
parcuty some buving for the long ac-
count accompanied the purchases made
~ spectators for the fan. Throughout
'uc morning tho speclaltics and local
stocks were but little affected.
Il was taken for granted that every
Effort Of diplomacy and financial infu-
cnce was being cXcrted I'm Europe to
avert t,e catastrophe which was dis
cernible. and there was a good deal "
roadness to believe variety OF private
adv ices received late In the forenoon
That II Austria made war on Servia tho
conflict would he successfully localized.
Credcuce in this case was probably based
on optimistic hope rather than reasoned
CONVECTION but the financial community
vas glad that sunday would present an
.UterNcning opportunity for the forces
o. peace to save civilization from having
20 deal next week with so terrible a calam-
y as suddenly doomed up In the last few
lays.
Tho spread OF the fresh war cloud has
ne M a n gNDlHIp tho pae,lli vi 90 ba
ipreign financial markets during recon:
months and accounts for monetary pho
upm'ua In which We have been Interested.
incMdug among other things the Euro
pean drain on our gold supplies. These
nave been as much the Indications of prep
~ tons against or for war as they have
been tokens of processes necessarily in. .
rIdeutal 20 economic REIMBURSEMENT, and
mo latest phase of foreign difficulty has
zen expressed in an unreasonable re- I
'oVrry OF foreign exchange. Demand ster-
Ing ruled little below iSSil Yesterday
ul an engagement OF $4,000. 900 for cx-
port 20 Paris nest week was added to the
-, 500, 0oo taken on Thursday
Tho weekly bank statement contained
q lt'lc surprise IN the wy Of a small .
ucrctSc ~ loans. S3.25O.0OO. The state .
mont as "a WHOLE was significant OF a .
further recovery Of position which under 1
wen. 50 much deterioration about tho
fu'u OF the midNeir. Deposits Increased .
tli COO. 600, but there WIS cash gain
nr $4,000, 600 and the surplus reserve IN.
creased $1,000, 600
No other financial or business factor Of .
'ho past week could possibly hc consid- /
"rod rs Of consequence in comparison .
With tn portcnts Of International politics /
.r ElNpn. Ever since the Balkan out
'Uctk loo lNl2 tho continental peoples .
Havo exhibited persistent fear that tho re-
.r'u,ug OF the near Eastern question .
must soouer or later culminafo in the 4
tragedy of a general war Whether or
rot the dcsE tch Of Austria's percmp-
tory note to Srryia finds Europe unable Ia
maintain the general peace remains To In .
seen what is OF most concern to us .
Ie the reelection which European war
% bound to hive here. There is no doubt .
that Europe would cndeavor to realize
h'a,l. com its holdings ~ American Sc
rII'iCs, hu There Is up doubt also that ,
Pm such an event chc American people /
would b" presented with splendid .
'hturn Go acquire securities which could .
.o; b" di-lodgCd from Europc,n hands
except h' the prospect NJ disastrous
.l".
fh' p"stpouoment Of decision In the
..''ru 'I'c ease WAS one Of tho disap-
"'w'uts NJ the past week, which was
.iNnr respects moro Disappointing than
"' contrary Political developments were
"N'''' n ono respect gratifying in .