The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-04
FINANCIAL NEWS
AND COMMENT
Sterling Exchange Rallies
Further-StOcks Decline
Toward Close.
TRADING LESS ACTIVE

About as much disorder was shown by
the foreign exchange market yesterday
in its At of recovery from the excessively
violent break OF III early part OF the
week as Generalization was exhibited
on the decline. While Wall Street was
gratihed to note the signs that sterling
bills were not going INTO a state of utter
collapse, the gyrations OF exchange on
London were not calculated to promote
constructive speculative activity in
stocks because realization is beginning to
pervade the Stock Exchange community
OF the formidable nature OF the difficult
solving the foreign exchange problem.
The stock market made a display of
more or less forced strength during the
greater part of the day. but dealings de-
creased In volume to the lowest aggre-
gate of the week. Moreover, the ultl-
mate tendencies were downward. The
vigorous continuation OF the rally In
sterling exchange was reflected in the
early trading In corporate shares by
rising prices, particularly In the indus
trial quarter. Foreign selling was again
reported and somewhat reactionary
symptoms were displayed until toward
midday, when II was rumored that some
temporary arrangements of credit had
been made for London's benefit. which
accounted for the further stiffening Of
foreign exchange.
Railroad stocks were then taken in
hand and moved rather sharply upward.
a particular reason for their course be-
ing furnished by advices from Chicago
announcing the purpose OF the Western
railroads to apply for a rehearing of the
rats case. recently all but decided
against them. There are very valid
arguments to warrant this action and
arguments OF even greater validity for
thinking that. Just as in respect to the
Eastern railroads a year ago. the Inter-
state Commerce Commission may dis
cover that 1t was mistaken in its frst
conclusions.
However that may be the movement
or the rails failed 10 evoke a general
stock market response. Indeed, selling
or the industrials was stimulated de-
spite the bidding up of one or two spe-
cialties such as Colorado Fuel and
Pressed Steel Car. In the last hour
weakness again developed as on previous
N"'S "a nv "Fth aIu the market WAS
heavy at the close, though there
was no active pressure and SUBJ
stantial gains pre~dominated. conspicu-
ously among some OF the rails. Bonds
were heavy not only on further foreign
liquidation. but possibly in anticipation
OF effect from the immense loan ar
rangements which In some form mus,
be the outcome OF the negotiations for
an adjustment OF the i%nternationa
money market.
So far as stocks went professional
traders insisted that there was an excess
supply and 1t is not unlikely that the
position at the end OF the summers
upswing has made the list more or less
responsive to adverse influences. At
all events constructive operations had
to contend with a prevalent indisposi-
ton to extend commitments over the
forthcoming holiday recess. Further
more, although scepticism was general,
the output o. peace efforts and peace
talk in diplomatic circles did not ex-
actly accord with the kind OF specula-
ton in which Wall Street has been in
dulging, but it can hardly be doubted
that the underlying drag on quoted
values was furnished by the foreign
exchange difficulties and the stlft task
which awaits the bankers in trying to
overcome them.
As was the case on Thursday. opera
tons in London before the opening Of
business here were responsible for a
very abrupt overnight advance in ster-
ling exchange. Higher quotations were
reported. but Al was about the actual
trading level for demand. a gain OF
about $ cents over Thursdays close and
a rise Of 20 cents from the low level
Of Wednesday. The rise did not hold
and there were extensive fluctuations
down to 4.64 and upward. with the close
around ACT.
Short covering was apparently a large
factor. but the market was strengthened
by reports of substantial temporary
loans made by bankers here to bankers
In London, with suggestions that the
securities received from Great Britain
last month with the gold consignments
were used as collateral. There was
much discussion of various plans which
might be adopted to deal with the situa-
ton, but all Of this was In ignorance of
the views Of the foreign banking COM
mission which Is to hold conferences
here, ever though It may be assumed
that the Londo operations in exchange
in h last few days have been based
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