The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-29
FINANCIAL NEWS
AND COMMENT
Stock Activity Increases, With
Violent Advances in In .
dustrial List.
FOREIGN LOAN FEATURES

Definite reports which began to per-
day regarding the successful completion
OF negotiations for the $500. 900 900 loan
to Great Britain and France played Q
considerable part In the excited bullish
activities OF the stock market. The loan
undertaking IL not to be regarded as .
factor making for i%ncendiary specuia-
ton. but the conviction which Wall
street has all along entertained that the
loan would be effected and would work
In behalf Of trade and Industrial expan-
sion has been reflected in the actively
rising stock market of the past fortnight.
Indeed. the latest upward movement
in quoted values practically began with
the opening OF the loan negotiations on
the arrival Of the Anglo-French finance
commission 1t does not detract from
the major influence OF the loan opera
ton that In the last few days the specu-
lative demonstrations in the stock
market nave been accelerated by the
action of the market itself n the at
fractions which It held out for q gam
bling plunge by public puntere.
So far as the Stock Exchange session
OF the day was concerned II gave an
even more feverish exhibition than on
Monday. Transactions expanded to the
largest volume in several years, the deal
ings In the first hour being on the scale
Of a two million share day. This was
too fast to last. but the level OF activity
was not lowered materially. At times
the tape record OF quotations was -FOUR
or Ave minutes behind the actual market
and observers wondered II the list could
.4z.A 49, otNatn ~ ~ttrh n nQNA ACCOM-
panied as It was by violent price adj
vances. A good deal of a test was
furnished In tho afternoon when Bald
win Locomotive shot up TO $50. moro
than 80 points above the opsning. md
only a little while afterward fell II
points from the top figure.
Such a performance Invariably proves
disturbing. and the rest OF the market
Welded sharply. but Spectators OF
bearish disposition who tried to force .
decline did not receive much encourage
ment. The share list offered stout re-
sistance and turned upward again. n
although II was somewhat unsettled In
the late trading the close was again
strong. War stocks under the leader
shin of Baldwin Locomotive were the
exclusive features of attention. but
standard issues. including rails. dis
played a good deal of underlying Arm
ness considef1nS tHo oNtoht w ""'~
they were neglected.
II might very we'll be that me effect
OF the huge foreign loan undertaking
will emphasize some OF the investment
and standard features of the securities
market in comparison with tho more
volatile vehicles of speculation. Tho
matter which q engaged 50 muoh
devoted banding attention In the last
two weeks In closely related to the
serious necessities of the situation which
the wal In Europe has caused. Under
the circumstances OF inherent difficulty
and artificial obstruction the progress
which the loan negotiations made In the
direction of understanding was ex-
traordinarily rapid and h successful
agreement which Wall Street understood
Yesterday had been reached In OF vast
importance to the solid and substantial
business interests Of tho country as
contrasted with the temporary Interest
denoted by the traffic In war munitions
and the speculation in war order stocfu.
The terms OF the loan reported during
the day. an offering Of 8 year 5 per
cent. notes. convertible into ffteen-twen-
ty-iye year AZ per cent. bonds, the
securities being the obligations OF the
British and French Governments, Jointly
and severaliy, with public subscrip-
ton at IS and underwriting at IS.
were everywhere regarded as hdicat-
ing a favorable bargain which must
make a wide appeal to investors and
financial institutions.
There was nothing in tho routine news
OF the day to compare with the mo-
mentous character Of the Information
that the foreign loan
ment would be made over night. No
confirmation was o~btainable OF ny Of
the rumors in circulation o new
corporate combinations. although some
basis in fact was admitted In trust
worthy quarters respecting minor phases
of the stories heard. The foreign trade
statement for the week ended September
/, with it's export balance of SET 500. 900.
added to the emphasis already laid on
the necessity Of the foreign loan. and
the influence OF export trade on industry
was illustrated anew by further ad-
vances In tho prices Of steel products.
Tho satisfactory trend OF current rail-
road earnings was carried along by the
Erie's report for August. showing net
earnings Increased to moro tfan ST.