The Washington times., 1915-05-23


tended the close of an active week in
financial circles. and the show of
strength is attributed largely to the be-
lief that the entry of Italy into the
European conflict will materially short
en- It, that there will be larger war
orders placed by the contending ma
ted states demands will be conciliatory
in tone. and that the buying for big
interests" has been resumed.
The largest advances Of the weekend
were again recorded In SPECIAL issues.
including one or two so-called war
stocks. The traders in securities were
inclined to view with optimism the prob
able developments Of the next few days.
which. 1t Is expected will bring tho
German reply to President Wilson's
note.
Prices on the New York Stock Ex-
change were rising as the Salandra
ministry was returned to power ana
the Italian parliament voted, in effect.
for war. Ali there seemed to be
an impression In wall street tnat tnt
war will be shortened by Italy's action. it
is recognized that such belief may be
premature and that a better forecast
may be made a month hence.
Only on the theory that those whose
operations dominate the movement Of
prices are confident that Germany's re-
ply will be satisfactory can the for
ward movement in prices be satisfac
torily explained. 1t is true that no
impairment has been shown in the
gratifying course of general business
conditions in this country, but it must
also be evident that the market is un-
der the influence not only Of that factor
but also Of the outcome of the stand
which we have taken with Germany in
respect to the violation Of our rights
at sea.
That matter being still unsettled it is
very easy to explain the reserve which
most of those interested In securities
have lately been showing, but Is never
theless to be recorded that there are
to control the course of prices on the
stock exchange. They are apparently
In minority. and the fact that their
operations have sufflced to bring about
number Of stocks indicates pretty
clearly that the feeling OF conservatism
with which the majority await the out
come OF our relations with Germany has
not in recent days been prompting fur
ther liquidation. but merely refraining
from fresh commitments. This has left
a fairly free field to those who lay more
emphasis upon the favorable effect Of
existing trade conditions and of expect
ed business improvement than upon the
restraining influence OF international
uncertainties.
A gain in the cash holdings of the
clearing house institutions. accom-
loans, resulted in a further gain OF
more than 37.0O00OO in surplus reserve.
which now stands above $3.50, 900, 900.
The loan reduction suggests that a fur
ther contraction occurred early in the
week in the amount Of stock exchange
loans, although this may have been
partly offset by the later dealings,
which did not. of course. find reflection
In Sundays bank return The bond po-
sition also probably contributed to the
decrease in loans. for dealers In that
department are believed to have been
following a very conservative course
and to have reduced rather than to
have been adding to their stock of
| bonds.
Speculative interest unmistaka bly,
broadened yesterday; evidence of this Is
| to be found in comparison Of the sales
| resulting from the two-hour session OF
the stock exchange with the sales OF
| less than 100000 shares on Wednesday.
| Prices did not advance throughout the
session; gains were occasionally fol
! lowed by moderate reactions, especially
when one or another OF the bullish as
! sertions was disputed Toward the close
a report that Autsria had met ItaIy's
| demands in order TO keep her former
ally out OF the war served to check the
! impulsive buyipS. but the days ad-
vances were substantial In spite OF the
! CLOSING uncertainty. Crucible Steel.
| Westinghouse. Pressed Steel Car, and
the other equipment stocks were lead
ers of the advance; the fact that 50 0O0
! freight cars have been ordered In the
past week served to help their advance.
Pressed Steel Car. whose orders booked
| for railway equipment last week were
! $50 cars from the Russian government
| and the Pennsylvania railroad alone
! sold at II yesterday. That price COM
pared with 4l% on Tuesday and S6 week
before last.
Save that single one which over
shadows all the others, considerations
Of Drssent stock market Importance Ars