The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-22
FINANCIAL NEWS
AND COMMENT
Stock Market Generally Weak,
but without Much Ac-
tivity.
FOREIGN EXCHANGE FALLS

Although the volume OF business IN
tile stock market yesterday was not large,
aggregating only little more than 1907
600 shares, the market was the weakest
since the general resumption Of floor
trading. There was comparative activity
in the early dealings, with the list uno-r
pressure. Transactions fell away subse-
quently, so that there were long intervals
of idleness. but pressure continued and
was increased in the last hour. when
trading became more active again.
While some industrial specialties dis
played firmness. a large number Of shares
which constitute the leading group lacked
resistance, and closing prices were in
several cases the lowest of the session.
There was considerable array OF net
losses ranging fiom one to two points.
while the average of decline was SUBJ
stantial The supervisory authorities an
nounced reduction of the minimum
prices for Atlantic Coast Line and Louis
Vile and Nashville. which recently low
cred their DIVIDENDS, anu ioJ me Soutne, u
Railway stocks and Seaboard Air Line
preferred
II was obvious that the movement of
quoted values reflected the reactonary
drift OF sentiment in the financial COM
munity, which became evident as last
week progressed and became pronounced
on the failure OF the share list TO give
an emphatic bullish response to the Ia
vorable rate decision by the Interstate
Commerce Commission. Investment OPP
20 tunities can only be enhanced by the
shrinlsing OF prices, but the uncertainties
of the moment seem TO be too much for
Wnil Street to make optimistic UNDER
takings.
A satisfactory feature OF the reopened
Stock Exchange has been the quietness
OF the market. but initiative OF n con
struc:ivc character has yet 10 make ap-
pearance therein. TO such "A market it
was relatively easy for downwald I'M
pulses to be communicated by the ruling
OF the Pennsylvania Public Service
Commission reducing anthracite freight
rates from 25 TO 40 cents a ton from
tho coal fields to Philadelphia. although
the benefit TO the consumer will only ap-
pear II the reduction Is sustained by
the courts and has a propor;ionate effect
on the selling price OF coal at the mines
An ohsetiins consideration was sup
Piled by The decision handed down in
the United States District Court here
late In the afternoon Diminishing the Gov
ernmcnts suit against the Lehlgh Valley
interests for violation OF the commol4-
lies clause of the Hepburn act, but the
ruling was not known until after the
close of business. The encouraging as
poets OF the Interstate Commerce Com
missions findings in the Eastern rate
case are paramount over every other
presen: political factor in railroad values,
...::aao;;S.. :.s:e !: :. Wall Stree: a!src-.
ton to remember that current railroad
traffic is In greatly diminished volume
and also TO await the result; Of the APP
plication OF railroads In other sections
of the country for rate relief.
The various influences making for stock
market depression already referred 10
seemed to be increased by the manifest
lack OF public support for security prices.
even though investment dealers report n
very fair over the counter demand. all
things considered. For the rest the state
of general business did not lack FOR
emphasis through the circulation OF ru-
mors about particular commercial diff
cultles.
The fact that the London stock mar
ket has yet to reopen IL an additional
Wall Street handicap which has TO he
reCkoned with. Attention WAS more
widely dlrec.cd to this phase OF the situa-
ton by the course of foreign exchange
This was one Of the outstanding events
of the day, for sterling and all other
forms Of remittance We're uniformly weak.
The decline In sterling was most impor-
tant because at the low level of 4.s5la
FOR demand the market was not only
normal for the season and the lowest
since the end of last winter, but within
range of gold imports.
II the expectations OF foreign exchange
bankers are realized there will be no
movement Of gold this way. 4 fan in
sterling rates has been for some time
foresecn. but IL has been believed that
the Bank of England would mark up the
sf erAlA OF g1s
come necessary TO prevent a drain on
British gold supplies.
What is more likely Is that n drop in
exchange Will stimulate foreign liquida-
ton OF our securities and importations OF
these might very we'll take the place OF
gold imports. As long as there is for
egn exchange situation OF the kind which
facilitates foreign security sales here 1t
Is wholly to our advantage. The situation
Is vastly different from that OF only a
few weeks ago, when exchange was high
and a demand for our gold was feared
as a result OF the European liquidation OF
American Investments
With exchange low because OF an album
dant supply Of II, there IL hardly any
better use which the country could make
of its favorable position In the lnterna-
tonal money market than 10 take back
good American securities at the prevail
ing range OF quotations. Europe acquired
the vast bulk OF its American investment
holdings In periods Of acute financial
necessity here but now the shoe IL on the
other foot.
Firmness in cotton and marked strength
in wheat were noteworthy developments
The further advance in wheat reflected
I to some extent the low condition figures
reported for winter wheat at the begin
ming OF the month. but II was more
clearly the consequence OF the great ex-
port demand. Last week huge shipments
Of about l2.500.000 bushels were certainly
calculated to send prices upward.