The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-24
FINANCIAL NEWS
AND COMMENT
L. s. Steel Sells at the Stock
Exchange Minimum.
Price.
THE WHOLE MARKET WEAK

important issues sold at or near the
minimums fixed for the protection of
values. Among them were United States
Steel. which was the first OF the recos-
nized market leaders to drop to the mini
mum: Southern Pacific and Pennsylva-
mia The trading on which the all
around decline was made represented A
moderate expansion over the volumes OF
the last few days, but IL did not appear
that the fall in prices stimulated the
selling movement.
In the pressure to which stocks were
subjected there seemed to be a consd-
cradle amount OF bearish effort be-
cause Wall Street has been vastly dis
appointed by the action of the market
| since the reopening OF the exchange, but
for the most part there was an obvious
continuation OF tho liquidation which be-
gan to I've manifest shortly after the
restoration OF tho open market. The ar
rival OF the LusItania with a reported
assortment OF American securities for
: delivery on sales previously made by
cable orders only pointed to the accu-
racy OF the conclusion that London has
| taken advantage OF the resumption OF
business here 20 clean up the shaky spec
| ulative position which existed in the
American quarter OF the London marke,
at the outbreak OF the war.
For the rest II might be pointed out
that the current range OF quoted values
still represents a considerable recovery
| from the low levels established during the
\ autumn in the irregular outside trading
| that went on while the Stock Exchange
was closed. The financial community
taken as whole recognizes that what
to At,,1 l.. t,g. n,l
underlying the weakness OF the share list
there is n feeling that investors who seize
the opportunities that offer to absorb Sc
curities at declines will profit largely in
the long run. In the stock market now
there Is a reflection of n general economic
situation, which is hardly likely TO get
materially worse than at present and Is
much more likely 10 begin TO show signs
OF Improvement before long.
Naturally enough Wall Street talked a
great deal about the possibility OF moving
minimum prices downward carefully and
gradually to keep in touch with the bal
ance of buying and selling orders In
deed another small batch OF minimum
! price reductions was announced after the
close. but these did not affect stocks
which are customar.ly regarded as sig
nifcant OF the markets position. There
would seem to be no reason for abandon
ing the protective thcc-y .. which min!
mum prices were set and an argument
could be made for refusing piecemeal
withdrawal OF the protection which the
minimum figures originally determined
/ upon may afford to financial conditions
There may NOT BE- much doing In n
market severely restricted BY prices a-
which there can ne no floor trading, but
something will be gained II the open
! market is even nominally maintained
The transfer OF securities which may
I % IL. ~ 81. -. 4. 49,
or provided for. and the fact that the
Stock Exchange machinery IL ready AT all
times TO operate Is an advantage which
should not be sacrificed again II there is
any way OF avoiding the loss
United States Steel furnished one OF
! the distinctly weakening influences OF
| the whole day. II was on the interna-
tional list that selling oonverged. and tho
| Steel shares bore the brunt OF II. They
/ have been very widely held abroad al
though there is no way OF knowing that
the selling IN Steel stock has been chiefly
/ of foreign origin.
| Possibly the construction placed on the
| determination of the management not to
lower wages inspired calculations based
on the proposition that payment OF un-
earned wages may be detrimental az
! the payment OF unearned dividends, hut
| as a matter Of fact the Steel Corpora
tons wage policy denotes we'll informed
! financial opinion that there Is a pros
poet for early business betterment. I,
might he pointed our in this regard that
the Iron Age. in its weekly review, re-
ported the Steel Corporations new De-
| cenbcr business MS being on twice the
scale of the November bookings and
predicted a material net gain in untitled
orders at the end OF the month. More
over. n significant feature of the steel
ma rket is the railroad inquiry which is
| coming in following the Interstate Com
merre Commissions decision in the rate
case.
Another factor of stock market de-
| preston was the reduction OF the
| Pennsylvania Company's dividend "a
| total disbursement OF per cent
for the year, compared with per
cent year ago This means that
the Pennsylvania Railroad will receive
| $1,000 600 less from It's subsidiary than
last year, but Wall Street Is not war
ranted in jumping to hasty conclusion
| regardin; "A change In the Pennsylvania
| Railroad divida nd. However. the develop
| ments In qu -"tion serve to emphasize the
| difficulties OF industrial and trade con-
ditlons even though there Is ground for
| expecting that before the end OF winter
a change for tn. better will take place
All the days news was not OF a gloomy
sort by any means. A Washington es-
! tinH'e SHOWING tldt on l'luillS from
customs districts covering about seven
eighths of the country's foreign trade an
export balance Of almost $50. 000. 600 had
| accrued between December and Deem
| her 10 portcnded an export excess IN
the neighborhood OF 500, 000.0 900 for the
month This explained why the foreign
| exchange market has been working more
| I'm the countrys favor despite the sup
posed European liquidation of American
| securities.
Tn reduction Of tho Bank Of Ger
| many's discount rate from per cent
| to per cent was another sign of the
completion OF financial adjustments 10
The fact and circumstances of tn" war
| 4 similar domestic sign was the an
| uouncement that the New York Clearing
House Association had returned TO the
gold basis OF settlement between its men,
bers.
The tendencies OF the home money mar
ket were emphasized by the action OF the
Federal reserve bank for the New York
district The bank has lowered Its dis
count rates to AZ per cent for thirty
day paper and to s per cent for paper
having more than thirty days and no,
moro than ninety days to run.
SECURITIES SOLD AT AUCTION.