The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-22
FINANCIAL NEWS
AND COMMENT
Stocks Show Strength, With
Leading Issues Rally
ing Sharply.
AN OVERSOLD CONDITION
European Markets Have a Bad
Day-Rock Island
Plan Fails.
AN OvERSOLD CONDITION

Although there was no news OF a
strikingly favorable and generally i'm
portant character TO stimulate a rising,
movement, tho stock market turned rather
strong yesterday.
There was announcement for corvtr,,c-
tive hopes in the announcement Of further
advances In the prices OF steel products
and advices from business circles con-
tlnued to he more optimistic than those
derived from financial quarters The
possibilities Of tho Eastern rate case de-
cision were canvassed anew without Yield
ing any particular conclusions, although
II might be inferred from the action OF
quoted values that they have pretty
thoroughly discounted any disappointment
which the Interstate Commerce Commits
sion's findings may contain The grain
markets were firm and agricultural re-
ports did not exactly make a contribution
Of favorable Influences, although the
weekly weather return did not indicate
that the principal staples had suffered
much In the areas where there has lately
been an excess Of heat and deficiency
of rainfall
Dispatches from abroad we're altogether
bad. The Continental stock markets were
very much upset by apprehensons re-
speeding tho political situation involved
Elected the Continental commotion. The
London market was also affected by tho
uncertainties of the Ulster crisis and by
tho persistent French inquiry for gold.
which forced up discounts. Tho harder
money rates in London were partly re-
sponsible for a further recovery In foreign
exchange hero to 4.S7L for demand
sterling, but the recent European selling
of American securities has been the chief
factor in strengthening exchange, despite
the recourse which Is now being had by
American borrowers to tho supply of
credits customarily available abroad at
this season.
As 1t happened there was an early let
up in European selling OF Am, rican
stocks, although the International list was
sharply depressed in London before the
local opening. while in the early deal
ngs here foreign offerings helped to cause
some pronounced declines and create gem
eral heaviness. The failure OF European
liquidation 20 continue may have been
the result OF more exclusive foreign pre-
occupation with European affairs than
with the so-Called scandals of American
corporate finance which Europe has been
lamenting recently. but without foreign
pressure Wall street sp culators OF hear
sh procivities were indisposed 10 IN
crease their commitments
In the second hour. started perhaps by
rumors that the rate decision might come
down during the day, there was a sudden
rush of buying which had the Conse-
quencr Of revealing a heavily oversola
condition OF the list Prices rose rapidly
and extensively on very small purchases
and pronounced scarcity Of stock,
seemed manifest. The bulk Of the days
rally WAS accomplished before mldse,-
sion. but thereafter the gain was quite
firmly maintained until the close
The indications were that the market
was In shape to respond by a very vigor-
ous rebound 10 any conSpicuouslv en-
couraglug dev, lopments, hut differences
wer" qualified 10y a proper regard for tho
"Nigencies Of the situation abroad The
Wall street upturn enjoyed good leader
ship. hut a number Of stocks which have
been in a more or less dubious position
rallied only a little II at all. Baltimore
Ohio failed Ia make a complete recov-
"ry OF It's further loss. Total transac-
tlons were NJ an increase over MONDAYS
volume Of business
II did not become definitely known
until after the close OF the market that
the tentative plan formed for the read
justmeut Of Rock Island finances and the
provision Of fresh capital had fallen
through. The representatives Of the Rock
Island company shareholders reached
belated decision adverse to the early sue
cess of the new financial plan. and their
withdrawal leaves the collateral trust
bond holders face IN face with tho aim
cult problem Of proceeding To take charge
Of reorganization in order 10 avert n re-
ownership that would be likely to wips
out their equities
These Developments arc further evt-
dence that the present In TIM when
corporate reorsanizations must ne dras-
| tic and thoroughgoins II they are to sue
coed. although Il Ia unfortunate that a
| lack Of cooperation from the security
| holders seerns to have initiated against
| the adoption OF the plan now abandoned.
| There has been Some clamorous protest
against mo plan, the complaints corning
| from tbs collateral trust bond hold
| crs, hut II Is moro than doubtful n they
| can 90 ahead 20 devise anything Ike such
n promising plan on n basis which re-
CARDS the rights Of the collateral trust
bond holders TO the exclusion of tho third
| cnmpanV shareholders