The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-06
FINANCIAL NEWS
AND COMMENT
Another Weak Day in Stocks,
With Trading Fairly
Active.
MORE FOREIGN SELLING

What part was played in yesterdays
stock market weakness by the extreme
war measures which Germany an
nounced for the warning OF neutral ma
tons was primarily traceable to an ap-
parent increase OF foreign liquidation
here. Al the same time 1t was more
manifest that the attention Of the fnan-
cisl community has been drawn to the
unsettiing possibilities OF the new and
more desperate phase into which the
European conflict Is obviously entering
The matter Of foreign liquidation Of
our securities causes no great concern
and 1t Is advantageous to US to export
our goods and commodities at high
prices and take back our stocks and
bonds At low prices. The apprehension
OF a flood OF foreign sales In the Wall
Street stock and bond market is prac-
tically non-existent and confidence Ia
felt that the financial strength which we
are developing. or rather discovering
will permit the market to absorb all the
securities which Europe is compelled to
return TO us At the same time the in
reference OF such selling with the es-
Establishment Of advanced price levels in
the International list Is recognized and
the fresh portents of the war suggest
that liquidation from foreign sources
may be temporarily accelerated.
In other respects the aspects Of tho
war seem TO present themselves TO Wall
Street as a reason for proceeding with
some caution just now In the expansion
OF commitments for the rise In quoted
values until II can be seen just how
military developments affect the status
Of this country. Reports from WASH
fngton that Germany's declaration OF
oceanic war zones was regarded seri-
ously in Government circles naturally
did not conduce to the support OF stocks
Mingled with foreign selling there
seemed to be some domestic realizing.
together with considerable amount OF
bearish pressure. The reactiUnary ten
denotes of a February market in a post
panic period, together with the abnormal
circumstances caused by the war, fur
nlsh a good general explanation OF what
ever downward movement the stock
market makes at this time. But fnan-
cial notice is not, and was not yester-
day. wholly engaged with foreign mat
tiers. on the contrary the indications
that general business depression Is still
severe and the prospect that inadequate
earnings may cause corporate difficulties
OF at least impair some dividend yields
made up considerable portion OF the
Wall Street considerations OF the day.
So far as concerns the rumors about
the possible reduction in the Southern
Pacific dividend it is quite authorita-
lively said that earnings Justify the
declaration of the regular rate for the
next distribution. To what extent I'M
easiness regarding some other dividend
payments is warranted is problematic.
Tho chances are that II Is very largely a
matter OF speculative nervousness.
IL might be pointed out that, m. .
ured by the fall OF price I'm some OF
the standard shares In the past fort
night, s:cci. ::;.-!.e. reaction hes al
ready been carried to substantial
length. At the moment however. SEN
timent and opinion are more or less
confused about tho Immediate course
OF values and there was nothing in
yesterdays dealings TO change tho
state of confusion. Aggressive strength
was again displayed by a few special
ties and a large number of influential
issues did not Offer any very sturdy
quality OF resistance to sales
Trading was on a scale OF expan-
sion from the previous volumes of the
week and the Close was generally heavy
around the low figures Of tine session.
Tho Stock Exchange published some
more reductions in minimum prices.
No important lowering has been made
since the last cut I'm the United States
Steel minimum, but the persistent
necessity OF authorizing lower official
prices in special directions seems to
have some significance as showing the
selling character of much OF the mar
ket.
Apart from matters referred to there
was not much in tho days news bud
get which calls for comment. After
selling at a new high price wheat broke
sharply in reflection of Germany's new
war measures, but before the close
recovered most OF it's loss. Foreign
exchange showed strength with a con-
tinuing demand for Dutch remittance.
Some new financing II moderate pro-
portions was concluded.