New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-29
REVIEW OF THE
STOCK MARKET
Outbreak of War and
Rumor That Russia Has
Acted Smash Prices.

Stocks broke wildly yesterday. drop,
ping from 70 6 points in the genera
fist and in the case of Canadian "a
cifc l9a. points before there was any
recovery. Austria declared war on
Servia, but the greater part OF 'he ee-
cline was due not 70 that Apprehension
realized so much as TO a report, re-
ceived In Berlin and thence sent mere
that Russia In turn had declared war
on Austria. The report was expressly
stated TO be without foundatloh' its
accuracy was so much doubted, IN iact'
that the Berlin newspapers refused 10
print il. Nevertheless the VISION
brought Of all Europe engaged IN the
greatest conflict of arms that modern
times have known overwhelmed the
market. Before the close OF the ses,
sion neither confirmation nor dehlal oi
the report had appeared in the imam,
cial district. The failure, however, Oh
circumstantial statements TO iollO"
the rumor being interpreted on uhe
theory that mo news IS good news
partial recovery followed the break Oh
midafternoon and at the close STOCKS
while still nervous and uncertain were
nj a level a point or more above their
lowest figures. Canadian racine, me
central point Of weakness, rallied -
points and closed with q loss Tor the
day of Is. ,...,
Overnight news had added little to
what was already known OF the Euro
pean situation. There was still 1el'
70 be a chance Of preventing war pc
tween Austria and Servis, though Rus
sia's attitude was matter OF tne
greatest concern. The refusal OF Ter
many TO cooperate with the other pow
ers in n conference Of ambassadors
Mt London was the first disheartenlng
news. Such of the foreign bourses as
were open Immediately saw repetition
Of the scenes on Monday, and IN Paris
steps were taken to restrict trading on
the Parquet--the Coulisse, or specu-
lative market, remained clo.ed-to the
most necessary dealings.
London sent over prices here Tor
Americans representing losses OF from
| TO 8 points The local market, how
ever, opened very much better than
might have been expected. Union Pa
cifc was unchanged: Southern Pacific,
Conner and Steel were off no more than
a point, Reading actually showed an
advance of ~ and Canadian Pacific
lost no more than IA. Before long,
however, the continued liquidation
from Europe, with stocks literally
thrown overheard, broke prices through
the lowest level Of Monday and de-
moralized trading to an extent not
known since 1907. The volume OF
transactions, for the first time since
late in 1912. was over 100000 shares,
European sales providing between 3d.
600 and 10000 shares.
Except at the opening the market
was weak all day, the small rally at
the close being due TO scattered short
covering. Two-thirds OF the losses
scored by the list as whole occurred
after | o'clock. about which time the
rumor Of Russia's war declaration APP
pcarcd on the Exchange
The foreign exchange market was
again in condition of chaos. many
bankers declining to make any quota
tions whatever. There were sales OF
sterling cables, however, as high as
4.9Aia and demand ranged we'll above
4.91, with reports that transactions had
been made az high as 5.93. Francs
went TO 3, a new record. In the course
of the dav S13.0O0.OO0 additional gold
was engaged for export to London and
Paris, most of il being coin because
the Sub-Treasury's stock Of bars. only
lately received from Denver, was ex-
hausted. Since the first OF the year
exports have totalled S106,100,000.
Liquidation in the stock market kept
call money fairly low. The highest
rate was 3i2 per cent and renewals
were made at pa.
Wheat, on Austria's declaration OF
war. rose excitedly, closing from to
o.. cents bushel higher, while cotton
dropped 81 so a bale.
The earnings of the United States
Steel Corporation for the quarter
ended June 80 were s20,457,576, or
about Sl.50O,OOO better than had been
expected. I'm the half year, however,
the company failed to earn common
dividends for the period by about SILL
100000. The deficit for the quarter
after the payment of dividends was
S5.159,237. The regular dividends
were declared on both classes Of stock.
In the course of the day the Inter
state Commerce Commission held q
meeting, at which all the members
were present, and it was reported from
Washington that they were in final
conference on the Eastern freight rate
decision. The report lacked confirma-