The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-10
FINANCIAL NEWS
And COMMENT
General Decline in stocks,
With Weakness ut the
Close.
RAILS LEAD THE FALL

Stocks closed weak around the lowest
prices last night, with substantial gem
eral declines for the day. American
Coal Products, one OF the new Corners
among the war stocks. WAS a conspicu-
Gus exception to the general tendency.
and a few descriptions offered rather
sturdy resistance to pressure. bu, for the
most part the list was governed by re-
dictionary influences to which 1t gave
way with the result of carrying the price
level lower than II had been since the
latter part Of May.
Except for the news that the German
note had been delivered and might he
published before Monday there was no
marketwise information which could he
directly connected with the course Of
quoted values. Indeed, technical factors
had more to do with the market than
external considerations of any kind, FOR
II would be easy TO arrange a catalogue
of constructive and very valid arguments
antagonistic to the continuation OF the
selling movement. which obviously
spread to liquidation OF lorg contracts
on margin.
Again the volume Of trading was not
large. but II did not take "A great deal
OF business to affect prices unfa vorably
because of tina peculiar Wall Street mood
of late. which has not conduced to the
increase Of the markets a~bsorptive ca
pacity. More than ANYTHING else the
market could he explained In terms Of
a state Of depressed speculative senti-
ment resulting from the failure OF June
hopes to blossom forth into bullish ac-
4 1 ole a.. aK.fAss ,l.. ..,a, 80,
uncertainties AS we'll as the disturbance
of the securities market which has been
caused here by the operations of British
war finance. However. foreign liqulda-
ton had little to do with the further
decline IN stocks and the conclusion Of
the subscription period of the British
loan should mark a decrease in pressure
from abroad. although the distribution
Of payments for the loan through II long
period may bring a persistent ,rickle OF
our securities from London.
On the whole 1t was manifest to most
observers that the Wall Street session
was the product chiefly of bearish spec,i-
lative effort which was encouraged by
success in ~dislodging stocks from specu-
lative holders who had become tired or
disappointed or rendered uneasy 10y tn.
markets rogress downward in the past
fortnight. There could he no mistaking
the last hour selling for anything but "A
speculative attack in its origin. but IL was
effective in stimulating miscellaneous
sales.
Early In the day New Haven shares
broke badly m the weakness which
New York Central displayed in the late
trading was an unsettling influence. but
weakness spread further throughout in
dustrials and uncovered some soft spots.
Nothing could better illustrate the part
played by depressed speculative senti-
ment in the action Of the market than
the indisposition Of the Wall Street com
munity tn a account Of the numerous
points Of strength in general conditions
which argue for the maintenance Of a
long n constructive attitude.
Use was made in the last hour OF the
imminent publication OF the German
reply To Washington to play ON s~pecula-
tive fears. although IT was not clear
that the German statement would be any
more unsatisfactory han the country
has all along had reason to expect.
Germany could get us into the war IL il
wanted to, but the proof is all the other
way. For the rest public opinion here
has so far indicated nothing more
definite h a that it looks to the Adj
ministration To keep the country out of
wv wa anu ~ II lloN ~ All oDNibus now
the lapse OF time has made our con-
troversy with Germany any worse than
it was when President Wilson sent his
second note in the negotiations started
by the sinking of the l.usitania.
There were some interesting interna-
tional financial developments. Des-
patches from London suggested the
probable success of subscription to the
British war loan. an event which will he
profoundly disappointing to German
Sympathizers but quite satisfactory to
the overwhelming body OF financial opin-
ion in this country. French. LATHAM and
German exchange was weak. but sterling
exchange was firm. Announcement was
made Of the receipt OF about 81. 200. 900
more gold from Ottawa and on many
accounts 1t seems that advocates Of
lower prices for securities have been
worrying much too prematurely about
the ability OF the belligerents to main
lain international credit
A step distinctly in the right direction
is in process Of being taken in the com
mercial credit which Is being arranged
for france by an undertaking Of bank
ers here to accept $50, 000, 900 Of bills
drawn by French bankers to pay for
other han war materials bought in the
American market. The loan, which will
cost the borrowers about G per cent, will
engage the credit Of the Bank Of France,
1t Is said, and also have French Treasury
notes as collateral security.
This unquestionably points the dlrec.
ton which banking endeavor should taM,
in seeking to provide accommodation
which will finance the continuation and
expansion Of our foreign trade. While il
is plainly undesirable to seek at this
stage to make a market here for the
direct absorption of foreign securities
the huge lending capacity represented
by the bankers money market can and
should be awaited of to make loans "a
foreign bankers with the additional Sc
curity of obligations of their own Gov