The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-19
FINANCIAL NEWS
And COMMENT
Stocks Rally Moderately in an
Active Session, Union
Pacific Leading.
PRESSURE ON READING
Chief Influences for Renewed
Decline Derived From
Politics.
PRESSURE on READING

Trading in stocks yesterday sustained
the scale Of activity established during
the week. Movements were confused and
there were a good many cross currents,
hut while prices were carried down in
the early dealings to n new low average
level the predominant tendencies were
jn the direction OF recovery. Rallies were
Of moderate proportions, but were gener-
ally made, although 1t was not apparent
that purchasers had much difficulty in OBJ
tanning stocks.
Union Pacific. among the influential
leaders, offered the most pronounced re-
sistance to pressure and displayed the
most aggressive strength before the close.
United States steel showed underlying
firmness. In the first half hour there
was heavy concentrated selling of Read
ing. while further pressure was applied
to some Of the other recent features OF
weakness, but traders were inclined TO
take the buying side OF the market on
the theory that Al rally had become over
due and ought to proceed sharply when
IL began. Extensive short covering OBJ
viously figured IN the transactions.
Such news as there was overnight and
during the day WAS not unfaNorable. ex-
cept in respect to Mexican AFFAIRS.
Fairly crcumstantial details OF the forth
coming New Haven financing were pub
Jished indicating that IN providing for
the immediate requirements Of maturing
issues the company was also able TO
make satisfactory arrangements for par
tiai compliance with the Government
agreement which will presumably be ratl-
fled 10y the New Haven stockholders next
week II was also reported that promis-
ing negotiations were under way for a
new Missouri Pacific note issue To ex-
change for TIE notes maturing In June.
The share list ut the close was some
what unsteady and uncertain. despite the
recovcries that had taken place but on
the whole recovery was fairly well main
tanned. The particular pressure which
continued in the anthracite Eroun OF rail-
road stocks was related in conjecture TO
the Interstate Commerce Commissions in
quiry into the anthracite industry, and II
was thought that the commission might
be very nearly ready to announce the re-
duction Of anthracite freight rates VIII n
IL has been expected to make. Whether
this Is likely 20 b. done before n decision
in the Eastern rate case IL question, hut
action on the anthracit. rates might pre-
pare the way for a ruling In the more
important matter.
The weekly bank statement exhibited
the effect OF the city bond sale and pre-
sumaily other financing which was in
progress. Loans increased more than
s:s.00o.000. while there was n gain of
s36. 60o.0 600 in deposits There was n cash
gain OF s2.s00."00. but as result Of the
large Increase IN reserve requirements
serves. which, however. stand well above
The surplus reported in the corresponding
week In the last two years.
The stock market IN the last few days
has been more disturbing than any which
Wall Street has had or its hands for
months. Not only did quoted values move
very emphaticaily and Significantly down.
ward. but the weakness displayed in mary
directions was pronounced and unsettiiuR.
Talk OF receivership for some OF the rail-
roads which are not in Il strong position.
together with discussion about prospects
for reduced dividends IN various direc-
tons, may have been caused by tho move
Tnent OF prices. but trade and political con-
ditions provoke degree OF pessmist!c
feeling with respect 10 the outlook for a
number OF properties.
There was n manifest outhurst Of real
liuuida ton some OF which seemed to come
from important quarters, although there
was unquestionably large amount OF
purely speculative selling, and II was evil
dent that the stock market community
was engaged In establishing a realign-
rnent Of the share list. There was an APP
parent discrimination between securities
all through the week. and legitimate In
ference IL that the market has been car
r.ed generally down because some stocks
had been maintained az too high level.
The prevailing influences were derived
from politics. Depressing weight was cast
lation on which the Administration II in
risting and the tariff difficulties OF trade
and industry were further emphasized by
a copious budget of expressed opin' on
about the general business prospect. The
Mexican situation became factor ap-
parently only beca use of the absurd sltua-
tion into which IL had been allowed "a
drift. but ita absurdity did not make
81 any less menaclng. According to al
the counsels of experience il is folly to
threaten an adversary If you do not In
tend to strike. The outcome OF such a
course is very apt To be an unwelcome
fight anyway Apart from this II could
hardly be- said that the financial dis
trict regarded the chance OF war with
Mexico as adverse 10 values,
Foreign advices were somewhat depress
ing London is concerned about the rela
lively weak position Of the Bank Of Eng
land IN face Of the continental gold grab
bine ard the Bank Of France u said q
have stopped paying out gold again. TIL
Brazilian crisis ~ troubling both londoi
and Paris. while domestic politics IL
France and Great Britain are restrantnl
financial activities The best thing abroat
is the persistent excellence OF the Invest
nent demand. q statement which is tru
also of domestic conditions.
announcement 10 believe that the New
York Central and other imperative cor
porate financing could be done success
fully was derived from the satisfactor.
sale OF 100000 of New York cit!
bonds ON a ans basls The domcsti
money market hardly needs discussing
Except for accident the money marSe
can hardly be anything else for month
TO come than extremely relaxed. Tn
new banking law In this state, which ha
Just gone into effect, makes for increased
ease OF money, If that were possible.
u Is the cheapness Of money here AM
the tendency Of discounts to harder