The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-30
FINANCIAL NEWS @
AND COMMENT
A Striking Demonstration of
Strength in the Stock
Market.
DECENTRALIZATION ABROAD
Rush Of Investment Buying
Changes Early Break
to Recovery.
DECENTRALIZATION ABROAD

soundness OF American enterprise. Ameri-
can values and Of the structural strength
OF American finance was n striking addi-
tion to the evidence already given along
the same line In the last few days
After a violent early break In stocks
the market rallied in response to n great
rush of investment buying aided by bank
ing support and closed strong. with a
large number of substantial gains show
ing throughout the list. although there
was variety OF declines also, most Of
them being fractional Similar encourage
ing Indications Of the business and finan-
cial position in the United States were
furnished In the freedom Of the domestic
money market from excitement and in
the less disturbed action OF the commodity
markets.
In the meantime tho European de-
moralization spread and was intensified
according 20 all advicaa Conditions
abroad served 20 make conditions in the
United States still stronger by contrast,
but they suggested among other things
that even II the worst fears lately en-
tertained respecting the outcomes OF the
European crisis in international politics
were not realized the enormous harm
done by tho terrific financial smash which
has taken place In Europe must have con
sequences which would have to he reck-
oned with. still their eff3ct could not
istll 10 ne Inlninllftu pN TtleI over lft
escape from tho horrors OF a general Eu-
ropean war Indeed the vast damage
which the menace Of such war has re-
hected might he regarded az cheap
price TO pay n II should procure the pres
ervatlon of Europe's greater peace. as II
would he nothing in proportion to the cost
of general war itself
Some argument of the sort may have
been influential here and in other centres
NegfpInaV egnart1llN tho afternoon
when a slightly more hopeful note began
to be- struck in comments. foreign and
domestic. on the prospect for avoiding a
clash Of arms among the European Pow
ers. IL was recognized that the ques-
lions raised by the Balkan war In 1919
must be settled some day. but Il seemed
to he thought that In the light OF the
awful revelation of des.ructiVeness mnde
this week n frame Of mind might have
been created abroad conducive to a peace
full solution OF Europes political prob
lens. Certainly the economic argument
for peace has been immeasurably siren 9Th
ened by the disastrous disclosure of its
validity.
However that may be. Il Ia n fact that
Wall Street in the afternoon was in
clined to believe that the policies OF pence
were beginning to prevail abroad over
the programmes Of war. A good deal Of
significance was attached in tho fore
noon to some heavy Berlin buying OF
stocks here, even while heavy sales were
coming from other parts OF Europe,
Later in the day some ontlmism wns
aroused by thu dispatches telling Of
an exchange of communications between
tho German Kaiser and the Car OF Rus
STA which seemed to bear upon the re-
port that Austria had sent note to
Russia disavuynG any purpose OF terri
tCr!al aggrrssions in Sarvia
Tho action OF the Wall Street stock
market itself might have been taken rs
the expression Of an instructive or an In
formed opinion that European aTairs
were turning In n better direction. and
there was not only the rally In stocks
to rely upon. There was also some re-
covery in cotton. and n fail OF three
cents n bushel in wheat. and what was
perhaps of more moment. there was n
sharp late decline IN foreign exchange
Prices for London and Paris remittances
went during the morning 20 further
almost unbelievable heights. So being paid
for sterling cables, while demand bills
were quoted AZ 4o9. Before the close
cables were quoted at 49,. while demand
hnd dropped 10 around i92.
For The first time since the violent
financial disturbance began recently. wall
Street stocks fell heavily yesterday In
the early dealings. There was frer-
zled outpouring OF shares OF all kinds.
the selling being OF most miscellaneous
origin, but II encountered a colossal WILL
ngness on the part OF investors TO buy.
and determined readiness on Tie par,
Of bankers 20 extend support. In the
first few minutes leading shares Were
quoted at from 70 points below Tues
days close, bu. partial recovery had be-
gun before the end Of the first hour, in
which total dealings aggregated $4,000
shares An inspection OF the tables "
price changes will show what n Wide
swing was made In quoted values and
tho basis for the encouraging ,nferences
which were drawn from the sustained
upturn. The total of sales was somewhat
less than on Monday. but the amount or
business dome on the recovery after the
frat hour was not the least gratifying
feature OF the session.
Tire quotation OF British Consols NJ
sais the lowest price for century, was
n token of the intensity Of Generalization
produced abroad. Settlement failures
took place In London and more wero ex-
ppcted. while much apprehension was FELT
regarding the violent state OF disorder
into which financial Paris has been
thrown. Advances Of per cent. each
were made in official discount rates by
the Bank Of the Netherlands ana tho
Bank Of Russia, and n rise in the Bank or
Fngland's rate, perhaps 70 per cent,
was predicted for to-day. The ST Peters
burg and Amsterdam hourses We're closed
and panic rates for money were reported
from Amsterdam.
A relatively small additional amount oi
gold was engaged hero for export to Lon
| don. perhaps 100000 which would
bring the shipments on tho pr sent move
| ment up to about 100000, 600. although
| difficulty was experienced In ascertaininp
| the exact figures. The gold movement
was affected by steamship schedules and
| by the convulsive ascent OF insuranc,
rates. which were fixed Yesterday at some
thing like ten times the normal charge,
The fact that a renewal rate of pei
cent. was established for call loans or
the Stock Exchange was n gratifying sigr
that banking interests wero adopting
measures to protect the money market
Little business was done IN time funds
which were quoted at another advance
hut tho banks would have made no mis-
take if they had begun to charge NOR,
| stinly for accommodation several days age
when the circumstances pointed to tn,
desirability of providing offsets 10 Eu
ropes frantic scramble for cash ant
credits.
"Smfcty First" shows Results.