The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-17
FINANCIAL NEWS
And COMMENT
"War Business" Causes Excited
Advances in the stock
Market.
PRICE AVERAGE GOES UP

In the early dealings yesterday the
stock market was thrown into volen.
commotion by tho action Of American
Locomotive and the shares Of various
equipment and steel making companies,
which opened at great advances or rose
rapidly. The explanation was that war
business contracts involving large
amounts OF money had bsen signed
and placed with these concerns, the
profits on which would be extensive.
There was all day a good deal Of
difficulty in reducing the facts Of the
matter to anything resembling an exact
figure. but It was stated late in the
afternoon that the Canadian Car and
Foundry Company had distributed a
total OF sso,ooo.ooo Of such contracts
with American manufacturers. The
whole market was stimulated by the
galvanic advances which took place In
American Locomotive. New York Air
Brake. Westinghouse and other issues,
although their price movement seemed
to he an excessive capitalization Of the
war business In question. Under cover
of the strength of particular descriptions
heavy realizing went on In most other
quarters Of the list. but this was no
now story for the present stock mar
ke6.
After the forenoon trading the mar
ket vsibly moderated Its trAnsports.
but II wss sustained by the influential
t'rmncss displayed IN tho list Of stand
ard shares even though tho weight Of
the weeks proft taking sales mani
testify told in a slowing down Of the
momentum OF tho bull movement. The
course of prices increased In irregularity
with the progress Of the day and there
were some sharp setbacks in the after
noon. reccssions becoming moro or less
general In the last hour. Neverthe-
less pressure did not increase on de-
clines. and toward the close prices
hardened all around under the leader
ship of standard stocks and tho final
tone was strong.
Observers and traders OF reactionary
views professed themselves TO be far
from satisfied with the setback which
had occurred, and insisted that a ma
terial turn downward was overdue.
They asserted that lenders on collateral
had been to accept a considerable va
rety of shares which had risen re-
markedly In recent weeks, and that
"A process OF discrimination Was being
Instituted which would compel some
speculative liquidation.
At the same time II was not apparent
that the market reflected any such
attitude among the lenders OF credit to
stock Exchange borrowers and the
selling seemed to be for no other
than profit taking purposes. II Is need
less to say that sales of this sort are
rather "A factor OF safety than the con-
trary and it was quite as apparent that
new buying was coming into the market
in fairly equal proportion to the with
drawal OF commitments.
Total transactions again aggregated
well In excess of a million shares and
the so-called averages stood AT new high
levels at the close This fact struck
observant attention beca use since Friday
a week ago, when quoted values ma de
such great forward leap. dealings
have exceeded 100000 shares and sales
have been on scale OF liberality pro-
portionate TO the volume OF business
Whether or not yesterdays market
showed only the appearance rather than
the reality of reaction II Is none the
less true that reaction would furnish 2
test more or less welcome 10 construc-
tive dispositions. II would presume bly,
strengthen the markets structure and II
would be demonstrated that the rising
movement had been very much overdone
II IT could not survive reaction or should
convert 1t into heavy decline.
Among the Items of marketwise news
which came In for notice were the re-
turns of tho country's bank clearings
for the week. showing material gain
over the corresponding week last year,
largely on account of stock market ac-
tivity, of course, but the tendency to-
ward an increase OF general business
was otherwise indicated. In the foreign
exchange market sterling bills were
weak despite the new gold engagement
and despite the reports that our bankers
would become buyers OF the now British
Treasury bills
AZ yet there is no evidence Of the
way in which foreign exchange between
New York and London Is to be cor
rccted. There are those who think the
most satisfactory adjustment could be
contrived by tho negotiation OF large
bank loans on the security OF American
collateral which has been held In sus-
perse in the London stock market ever
since last July and is more or less OBJ
structive OF improvement here.