The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-21
FINANCIAL NEWS
AND COMMENT
Stocks Decline Sharply in Last
Hour on Increased
Dealings. ~
LIQUIDATION IS GENERAL
Mexican Situation Does Not En-.
courage Optimism in
Wall Street.

'chVi"i ipuiuutiOIi, apparently OF mar
gin accounts in the commission houses,
was the most striking development in the
stock market yesterday. In the first
hour there was q good deal of activity
OF a two sided nature which seemed to
represent chiefly the operations Of pro-
fessional traders. Thereafter. until the
last hour. the market maintained. rather
nervously and unsteadily. some rally from
the earliest depression. In the final hour,
without any exciting cause and without
any obvious initiative OF speculative
origin. there went on q steady selling
movement which could have had but one
source, namely. the margin accounts OF
tho miscellaneous public interest that
has been in the market.
This interest has not been large but
the afternoon selling was proper
toned to II. While individual transact
lions were OF moderate size there could
be no installing the character of the
movement. It proceeded to tho close.
and between 9 and 3 o'clock about $780,
goo shares were dealt In. or much more
than one-third of the days total volume
OF business. There was no sign that the
sharp decline which accompanied this SELL
ing was accelerated by speculative pres
sure. and indeed professional traders
were In the main indisposed or afraid to
take the short side.
As result of tho late dealings the
market ut the close showed n large num-
Der of substantial losses. ranging from
l to 3 points, and Anal prices were the
lowest of the session. while the closing
tone was weak. There were no con-
spicuous leaders in the continuation of the
decline, the peculiar feature of the fur
Their fall being its very general nature
Perhaps the afternoon selling was tho
stock markets automatic response to the
question which Wall Street was asking
all day, how the Mexican situation
should be regarded from the standpoint
of prices. There was practically no talk
in the financial district about anything
else than Mexican affairs. The Presi-
dents address to Congress was not avail
able for perusal during the market ses-
sion. but 1t contributed nothing to the
enlightenment of the financial community.
The blunt truth about the situation
as IL is seen from the standpoint of finance
Is that If the United States becomes en-
gagged In warfare in Mexico the war will
be the inevitable outcome of the Admin
istration policy. however necessary II may
be to support the Government once the is
sue is Joined. 1t does not appear to
financial observers that the course to
which tho country is now committed can
have any other event than warfare, and
this being the case finance Is not con-
necessity OF war or the degree of its pop
ularity as with the practical bearing 1t will
have on values and volumes. \ good many
arguments have been heard that military
expenditures will make for "A kind of
prosperous activity. but reasoning of this
kind is the kind of reasoning which de-
rives Npotions OF prosperity from confia-
erations and other calamities.
The fact of the matter would seem to he
that the Mexican imbroGlio is likely to
prove only an additional factor of dis
turba and strain at a time of serious
economic unssttlement on other political
accounts Barring complications IL is not
/ likely to produce "A very adverse effect on
the money market, at least not mmed-
ately. although even the present modicum
of constructive financial activity may be
! temporarily diminished until it can be
seen Just what is going to happen. Gov
eminent bonds shaded decidedly yester-
day and time money was quotably frmer.
! Prospects Of a large Government bond
issue. Increased taxes and the drain OF
| funds from the avenues OF productive ef-
| fort do not. under the circumstances OF
the moment, warrant analogies from the
| Spanish war period OF 1898. The coun-
| try had then been through a tremendous
| economic readjustment and was favored
by political conditions propitious for bust
ness and financial endeavor. Possibly
some reasonable clues as to the way ir
| which the dominant developments of tn.
| day arc to be regarded will be furnished
by European finance. 1t was not cesbl,
that yesterday. just as was the case las
| week, our Mexican situation was one o.
the influences making for heaviness anc
weakness In the security markets abroad
Foreign values were also affected sd
versely by rumors current about tn
| health OF the Austrian Emperor.
Foreign exchange here continued nrr
around the level OF 4.S7 for demand ster
ling. the attainment Of which has sug
gested tendencies which might cause golC
to leave the country These tendencle
may be overcome If our Government ha
TO go IN for extensive financing OF mil
tary operations. Europe would undoubt
eddy be buyer OF such securities a
Washington may have to issue.
Mexican matters relegated all othe
subjects to obscur!ty. Copper metal price
were reported as weak thus bely.ng tn
glowing version which is persistenly give
of tho position OF the metal and OF cop
per consuming industries. Statement
made at the United States Steel Corpora
ton annual meeting with respect to tn
wage scale in the steel industry and tn
competitive conditions established by tn
revised tariff lent themselves to infer
ences corroborative of recent reports tina