The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-06
FINANCIAL NEWS
And COMMENT
Moderate Reaction All Through
Stock Market in Quiet
Session.
PRICES STEADY AT CLOSE
Indications Of More Hopeful At
titudcs-Gold Export
Prospects.
PRICES STEADY AT CLOSE

Trading contracted moderately In yes
tcrtlay's stock market. Such n tendency
toward activity as was manifested was
largely on the selling side. although with
out much pressure. and the market re-
acted moderately nil around. The recess
sion might have been more considerable
without causing surprise. bu, closing
price changes were in the main only frac-
tlonal declines. The downward course Of
quoted values was more or less irregular
throughout the day. relieved by occasional
spurts of advancing strength. and In the
The close was steady.
The peculiar heavlness OF Government
bonds continued. and was perhaps one
reason why professional traders made ex-
periments with the selling side OF the
share list. Among the trading theories
OF the day was the notion that the diff
cult uncertainties OF the Mexican situa-
ton would inevitably offer some restraint
TO much further recovery in stocks at
the moment, and the action OF Govern
ment bonds might BE- supposed to show
that peace negotiations We're not making
satisfactory progress.
To what extent IL fresh turn for the
worse in Mexican affairs would be a seri-
ously detrimental factor Is something
OF question, considering the reasons
which exist for the adoption OF more
constructive attitude toward the financial
and business future, but nobody in finance
expects that changes for the better are
going to be wrought all at once Traders
also sold the market on the idea that
doubtful aspects of the railroad rate case
would keep quoted values In a huctuating
range for a while. although there are
other more imminent matters which the
share list could reflect.
One of these is the Roadway that has
been making in settling various trouble
some corporation problems. Another IL
the probability of a brilliant crop report
on Thursday The weekly weather review
yesterday told OF fairly favorable agri-
cultural conditions for the most part and
noted especially that the excellent wheat
outlook was fully maintained. stu an
other matter Of hopeful significance il
President Wilson'S selection OF members
for the Federal Reserve Board.
Banking opinion is that the prospective
board as n whole might have been so
much worse that II deserves to be called
remarkably good. Mr.. Warburg's MEM
bership gives it in financial eyes a status
which II could hardly have obtained b. tho
inclusion OF any other banker who might
be named. so important has been Mr..
Warburgs Identification with recent years
OF effort to equip the country with fnan-
cial facilities commensurate with its OPP
portunities and needs. on these and on
other accounts the evidence of better
feeling which began TO show itself a week
ago has been strengthened by further in
dcations of "A gradual change to quail
hedly optimistic convictions in quarters
which have for long time past held any
thing but constructive views OF the
economic prospect
European stock markets were rather
firm in the main. There was some early
4. n s.f hA In
creased taxation promised by the Minis
ter.al budget, but depression did not last
long. TIL. most interesting foreign fnan-
clal development was the fact that France
and Russia took about two-thirds OF the
new gold arrivals in London AT the highest
price in four years. London discounts
hardened and exchange here rose to al
most 4.S1%.
OF cours. these changes Indicated the
probability of n fairly large gold export
movement. but the renewal rate Tor eau
money, l l.. per cent. teStihes 10 a very
comfortable banking position. Win me
outlook promising for an early establish
ment OF the Federal reserve system there
seems 70 be no warrant for regarding
reasonable outflow OF gold with appreten-
sion.
There were signs that early Information
would be Obtaina3ls "A 10 the Missouri
Pacific and Rock Island situations. 1t was
understood that the reports submitted 10
bankers on the physical condition OF the
Missouri Pacific were encouraging and
there is every likelihood that the neces-
sary elimination of some former interests
will be effected In order "a permit new
financial support for the Missouri Pacific
property. WITH regard TO Rock Island af'
fairs the most hopeful thing WAS tho evil
dence that tine stockholders and bond
holders committees were engaged in nego-
tiatons which. II reason prevails. must
end in an agreement enabling the Rock
Island problem to be adjusted without
q receivership.
Senator La Follette's charge OF con-
epiracy TO coerce the Interstate Commerce
Commission into granting Increases or
freight rates on the Eastern railroads
was regarded as a display OF mania and
hardly likely to result in coercing the
commission into refusing relief Tor the
railroads.
The announcement that tho Lake Shore
had discounted s2oo00.00o OF one year
notes In London and Paris on AZ per
cent basis In order 10 take care OF some
forthcoming maturities and reimburse the
company's treasury for various advances
was In line with other developments that
have suggested a renewal OF endeaVor
to accomplish substantial amount or
corporate financing this spring.