The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-20
FINANCIAL NEWS
AND COMMENT
Sinking Of Arabic Causes
Greatest Break Since Latest
Upward Squirt.
MUCH OF LOSS RECLAIMED
The news of the sinking Of tn. Arabic

The new OF the sinking Of the Arabic
threw the stock market into confusion
and caused the most considerable break
that has occurred since the latest up-
ward squirt began. The first dispatches
were printed on the news tickers about
] p. NJ. and a running break took place
Immediately. sending prices of the &C.
tive speculative favorites down from 2
to S points. This period Of acute weak
ness was brief. II was followed by a
sharp rebound, during which a large
part OF the ground lost was regalned.
The recovery was apparently due TO
word that no lives had been lost. which
restrained further liquidation and led to
some buying of stock hastily thrown
over. A secondary decline then set in,
which continued until the close. The
previous low prices were not reached on
this movement. however, and on the
whole the market was notable for its
orderliness. Evidences OF supporting
orders were noticed.
Al the end OF the business day the
Street was still completely in the DARK
as to precisely what had happened in
regard to The Arabic. The latest re-
ports available indicated that the incl
dent contained tho possibility of all
sorts Of unpleasant complications and
sentiment at the and Of the day vn..
therefore. IN . highly nervous state,
The immediate course Of the market de-
ponds to a very large extent upon de-
velopmeuts In this respect Neverthe-
less. even IL Il turns out that the Arabic
incident was not at all serious in a
diplomatic sense. It is likely that the
speculative position has received a
shock from which II will not Immediately
recover. Under the best of circum-
stances a decline of this kind cannot
occur without disturbing the main spec
ulative position. Failing prices always
create doubt. which IL not immediately
communicated TO outsiders. II the spec
ulauve account is overextended the
purging process takes all the longer "a
accomplish.
Even before the Arabic news came out
the condition of the market suggested
a reaction OF some extent. or at least
q halt In the upward movement. The
sh~a "oS VA pINSSuTc hlH1OSt from
the start. There were heavy realizing
sales during the morning hours by i'm
portant interests, who were not satisfied
with the behavior OF the market. OBJ
lection was made particularly to the
forcing methods adopted by the people
behind the market in Studebaker and
Air Brake. As a matter of fact market
sentiment for some time back has beer
divided. An immense amount OF profit
!, taking has occurred. and there has beer
a general shifting around of speculative
positions. Considering the market situa.
tion without reference to the Arab,
incident, the decline that has taken place
is mt without its compensations. Reac.
tons of this kind must be considered as
favorable rather than ~unfavorable de.
v%elopments. They are needed to keer
the speculative position In a healthy
state.
OF individual features the most prom.
inent was the resistance shown to the
selling by certain stocks and groups OF
stocks. Declines were general through.
out the list at the close, but the action
of the copper shares. the railroad stocks
and several industrial issues was IN
sharp contrast to that OF the shares
which AVE been featured in the latest
violent upturn. The news of the DAY
in a stock market sense was entirely
o~vershadowed by the sinking of the
Arabic.