The sun., 1915-10-25
FINANCIAL REVIEW
OF The PAST WEEK
Stocks Make q Display OF
Strength Against Reac-
tionary Selling.
SIGNS OF NEW ACTIVITY

Wall Street. haA bssn fun Of reaction
ary stock market sentiment lately and
the market has been full Of selling for a
reaction. Professional traders have
even carried their action % far a. to
conduct experimental bearish operations.
but at all times the market has dis
played remarkable sbsorptive capacity.
There have bean signs Of . further dis
trfbution Of varioW Issues accompanied
BY indications oe an Increasing ooncen-
tration OF otherS ss advancing prices.
for despite an attitude Of speculative I'M
certainty or hostility In various quarters
confidence in the prospect for vaiues
has been manifested by q good deal Of
aggressive buying In a rather long array
Of industrial ias,tes.
More time will be needed to demon
strate the exact position and tendency OF
the share list, but reasons have not been
lacking for an assumption that tho con-
fised movement Of prices on the surface
has been only incidental 70 the estab-
lisfmerA Of the market on . baets Of
broader dealings. II has probably been
the experience of the average observer
laAeiy that whom he looked At the trading
IN stocks and regarded their extensive
huctuaffons In both directions he became
apprehensive Of tho stability of the price
structure On the other hand when he
looked away from tho market and ro-
sarded the external conditions bearing
on values he apprehensions diminished
and confidence IN constructive financial
tendencies was renewed.
Had Il not been for the somewhat dis
turbing character Of the military and
diplomatic sdv3ces from Europe recently
II = doubtful II there would have been
% much speculative disposition 20 con-
template TIE posture Of stoclrs with un-
sasdness. Il ssasned to Be- the general
view Of Wall Street that thinss wore
going badly for the AlieA and while
Intelligent analysis Of the European
military situation did not warrant pes
GmiStio conclusions there u no question
that the possibilities OF unfavorable war
events were counted upon 70 disclose
tho vulnerability Of the speculative ac-
count open for the rise In stocks.
Not only has the market had to con-
tend with such . view. but II has also
had 70 contend against the level Of
advance already attained. At this ad-
vance there has been . congestion of
speculation in tho Industrial department.
more particularly In the long catalogue
this more than anything else which has
justified reserves Of caution in recent
considerations OF the prospect for quoted
valuesL However. symptoms Of reckless
plunging have not been 90 conspicuous
this month On the contrary. the SELL
Ing in the market has testified TO . ra-
tional moderation Of speculative trans
ports.
Moreover. II has been more or less
lvA ga IS. a.
tive position might be in the industrial
department. II was protected BY sub
stantial prohts resting on ample original
margins. thanks to the common sense
which the majority Of brokers have
shown In cooperating with the bankers
whose efforts have been directed to
keeping the curb Of . relatively low
collateral loan value for war munition
shares on nero gambling propensities.
Furthermore. II has been implicit IN
some OF the aspects Of surface confu-
moss Of activity and the overcrowding g
Of long commitments In q part Of the list
have been relieved by a partial shifting
OF commitments into other parts.
Dealings have ranged over q greater
number Of stocks because OF this and be-
cause there has also been new public
buying in rails and seasoned industrials
which have not participated prominently
in the war stock speculation. 4 very
solid element in the Wall Street COM
munity has held aloof from the war
munition shares. but has been ready to
buy into the more standard stocks on
encouragement from general conditions.
To this element the staple shares have
begun to look more attractive because
Of the marked progress Of general busl-
ness betterment this autumn. Altogether
II would not be surprising II the stock
market should soon develop broa adeninE
tendencies. although allowance has to
be made for tho unsettling contingencies
OF these war times.
So much has been said In the way
of warning to the public against un-
wary exploits OF dollar grabbing avarice
in the oonJectural profits Of war con-
tracts that there Is some danger OF mini
missing the stimulus 20 domestic trade
and industry which has been reflected
In tho speculation In war mun,t.on
shares. Counsels Of caution addressed
to greedy gambling ignorance should
not bs mistaken for disparagement Of
such values a. are PROFESSIONALLY ac-
cruing 10 the securities OF many cor
porations from tho profitable contracts
for military supplies which they have
negotiated. Other factors OF expa nsion
arc now coming in to support the I'm
pulses for general business improve
ment derived from war born activities,
but the initial impulses for recovery
were furnished by the war and they
are still in q state Of strong continua-
ton.
SO far as the stock market Is oon-
cerned headlong crowding OF specula-
ton into the miscellaneous and even
motley assortment Of issues classed as
war munltion shares must court the dis
aster which IL always r,sked by follow
ing any kind Of n crowd anywhere. FL
nancial history Is full Of instances In
which stocks OF merit have crashed
heavily because too many people had
them, But II should also be remem-
bered that whatever the merits or do
merits OF different war munition shs res
their rise this year has advertised the
salient facts In the domestic business
situation. which are that many individu-
ais and concerns are making a great
deal OF money very rapidly. that the
Fronts which are accru!ng to them are
already pervading various sections of
the land and that the country as a
whole Is in the way of making money,
which means stimulus for all branches
OF enterprise.
There is no evidence yet OF such an
orgy or expenditure as would be a sig
nal to the astute and thoughtful IN hs