The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-01
FINANCIAL NEWS
AND COMMENT
Stocks Rally Sharply in a Ses-
sion Of Relatively Ac-
tive Trading.
MANY RATE CASE RUMORS
Paris Bids for Gold in London,
and More Exports Are
Indicated.
MANY RATE CASE RUMORS


market conditions yesterday compared
with the stagnsnt and slightly heavy SEES
sion on Monday. Dealings expanded 70
about a quarter OF million shares and
prices showed strength In proportion to
the sudden spirit OF activity. There were
all tho indications that professional buy
ing to cover short contracts had been in
duced by some moderate purchases for
tho long account and that the undoing
OF bearish positions was chiefly RESPONSE
bic for the manifestations OF tho share
list. At the same time this was In Itself
another tribute to the technical strength
OF the market situation which had been
otherwise suggested by last weeks re-
Spouse TO the depressing influences OF the
Claim failure and other adverse consd-
erations.
was not exactly favorable to the con-
structvc side OF quoted values. There
was Included the deferring OF dividends
on tho Associated Merchants preferred
and United Dry Goods common stocks,
"A direct outcome OF the difficulties which
disclosed the embarrassment Of the
Claflin company affairs. Further reports
OF railroad earnings for May showed In
the main substantial shrinkages In gross
and net compared with the corresponding
month last year.
That there would be q partial default
In Cincinnati. Hamilton and Dayton in
terest payments. due to-day. was known
early. but the stock market was not OBJ
Niously affected by any OF these things
The decision of the United Dry Goods d..
rectors had probably been anticipated.
The tale OF railroad earnings was not
new and If the Cincinnati. Hamilton and
Dayton default means n receivership pre-
limnary to relieving the Baltimore and
ohio of its burden OF responsibility on
account OF this Improbable subsidiary IL
lS not obviously subject for Wall
street lamentatlon, especially as the In
terstate Commerce Commission does not
seem to think highly of the Baltimore
and Ohio's assumption OF obligations
toward the minor road.
The Eastern rate case bullSed large In
the days discussion and various rumors
concerning II played an important part
I'm the professional activities OF tho stock
market. The overnight announcement
that there might he AZ least another fort
nights delay of decision was contradicted
during the day By what purported to be
advlces from Washington that the com
mission hoped tn announce its conclusion
at tire end Of this week. Rumors regard
ing the nature OF tho commissions con-
clusions We're also IN circulation and most
of them were OF an optimistic character.
The fact that the late afternoon reports
were coniirmatory Of the earlier reports
OF delayed decision left the stock mar
ket community in somewhat OF a guam
dairy as to exactly what had happened
To- galvanize the share list into such a
semblance OF active strength.
Nothing particularly significant a.
bearing on the trend OF values was con-
tanned IN the European dispatches. The
markets abroad did not seem 10 be max
ing any construction OF current events.
political or financial. but a circumstance
of considerable interest was the violent
fall Of almost four Confines In the Paris
check on London This was equivalent
Ia a sharp rise in sterling bills here. and
although demand sterling closed rather
under 4S1"s. II was the understanding
last night that further engagements OF
gold for export 10 Paris were under ne
gotiatlon. A resumption OF Partisan gold
purchases In London showed that French
demands for the metal had not been APP
peasad, but there WAS no information
av liable in local banking circles which
made any satisfactory explanation OF
French persistence In the gold grabbing
campaign.
Washington's principal contribution 70
markctvise comment. aside from the rate
case considerations. WAS contained In the
various aspects OF the Mexican imbrog-
Ito, which seemed to- financial eyes to be
a worse muddlo than ever The most
comforting facts of ihe day were COM
priscd IN the crop indications. Good crop
weather was again reported In tho Gov
ernments weekly review, and agricul-
tural auspices wero described as more
than gratifying In n series OF State and
private trade estimates.
A matter of much constructive import
was not dlvulged until after the close Of
business. when the general facts were
stated about the forward looking plans
Of the National City Bank 10 establish a
branch bank and agency orgs nizatlon for
the furtherance OF the country's trade
with South America.