The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-24
FINANCIAL NEWS
AND COMMENT
Sharp Rise in Market Credited
to Buying Back by Profess
sional Operators.
WAS WEEK OF CAUTION
News and Critical Missouri Pa
eific Situation Restraints
Bulls.
WAS WEEK OF CAUTION

The sharp rise IN the stock market yes
terdsy was an Impressive performance.
Undoubtedly II was based on a buying
back by professional operators OF stocks
sold earlier I'm the week But the ease
with which prices recovered practically
the whole extent Of their sharp setback
upon an Insignificant volume of trading
indicated plainly that stock was lot for
Ssle. There was no outside dcy .Jlment
to which the strength could be ascribed.
Nothing occurred to lessen materially the
uncertainty over the Missouri Pacific stu
alton; 100000 more gold was engaged
for export TO Parls< the London market
turned weak under renewed liquidation
and continued unsettlement was reported
at Paris. Tho fortnightly bulletin OF the
American Railway Association reported
an increase in idle equipment from May
OF s,I63 cars. bringing the total to
33s.6i2. All Increase at this time Is
seasonal, but the totals reached are de-
scribed as indicating abnormal traffic con-
dltions. The weekly bank statement
showed further accumulation OF funds
at this centre. The surplus reserve is
now at the remarkable figure Of $780,
$4,000, which adequately explains tho
movement OF gold out OF the country
Most OF the news OF the week while not
of q distinctly unfavorable nature was
still OF q character to inspire caution IN
stock market commitments. Therefore in
tho absence OF renewed stimulus to
buying the upward squirt in prices petered
out and was succeeded by a sharp re-
aotion. But II buying did not follow
prices up II was equally evident that
liquidation was not provoked by tho re-
ceesion and prices returned practically to
the high mark of the recent movement
with surprising ease The stock market
continued 4 highly professional affair and
the trading even from this source tended
20 diminish steadily. But the main fact
about the market situation was that stock
old not come cut and that the market be-
came oversold easily. The great under
lying strength IN the face OF the unfavor-
able possibilities contained I'm the Missouri
Pacifcs affairs and other matters makes
IL apparent that the position OF few
weeks ago has been reversed and that I'M
favorable considerations are having COM
paratively little influence on prices. n
other words, technical conditions are more
than usually strong.
4 highly critical situation in regard
to Missouri Pacific undoubtedly exercised
4 restraining influence upon bullish enthu-
siasnn. 1T Is admitted that negotiations
between leading banking interests and the
management looking forward to a perma.-
nent arrangement OF the roads finance
have been broken off and that q failure
Of the plan TO extend the note issue ma
turing June 1 will have the most serious
consequences not only to the road itself
but to the whole Gould system. Although
so far a large amount OF the notes have
not been deposited II is believed that the
noteholders will appreciate that they have
nothing 10 gain by holding out and thus
throwing the road into receivership and
tO-D1 W he Ha
freely. hopeful view OF the outcome
OF the present crisis In encouraged TO
some extent by tho frnness OF the securl-
ties concerned, both directly and indl-
rectiy.
The financial position in London is stin
threatening and cable dispatches speak OF
further trouble apprehended in Paris.
The London market has been adversely
affected by reports that the operations
OF the Spectator recently In trouble
there were even more widely extended
than had been anticipated and that the
syndicate undertaking the salvaging OF
this position was itself embarrassed The
settlement this week is std TO be looked
forward 10 with some nervousness on this
account But Il will be welcomed as
throwing light on the actual state of af-
fairs and II may turn out TO mtigst to
tho able It posslmlsm now prevailing on
the other side. \ further sharp rise in
sterling exchange here In response to an
increased demand for gold abroad empha-
sized the uneasiness felt In foreign circles.
More gold was sent TO Paris and there was
talk OF shipments TO London. Inasmuch
~ financial conditions here are so strong.
the transfer of gold AT this time must
work indirectly In favor of this centre,
sven II It be ap index Of reduced trade &c
uvity at home'2 and OF "A smaller trade bal
ance in favor OF this country.
So far as the stock market IL concerned
the effect OF the extraordinary revela-
tons in tho New Haven inquiry was not
quite clear. but II was feared that the
general construction that will be placed
on Mr.. Mellen's testimony will not aid In
= spread OF financial optimism The stock
market also had to Withstand a flood of
uufavorable reports on tho wheat crop,
which made out that widespread damage
had been sustained from insect life Az II
turned out later these stories had been
grossly exaggerated and all testimony
OF reliable authorities was to the effect
that no serious impairment had occurred
Pronounced weakness in the Western
Maryland securities. although a distress
ing development 10 those directly con-
e.rned. was without general significance.