The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-17
FINANCIAL NEWS
AND COMMENT
Stocks Stronger, With War
= MunitiOn Shares Leading
in Recovery.
LARGE INCREASE IN LOANS

Trading held its wi IN the stock
market yesterday without any continue
ton of the weeks tendency Of dealings
to decline. The share list also displayed
more pronounced frmness, becoming
rather strong toward the close, after
som. early persistence OF weakness.
Undoubtedly there was a large percent
age Of short covering in the purchases.
but there seemed also to be some con-
ndent accumulation. particularly in lead
ing war stocks. The list OF industrials.
which has come TO be so classed. still
displayed the most conspicuous strength
on recovery, although rails and standard
industr.als, without enjoying any par
ticular favor, exhibited satisfactory sta
bility.
The professional trading element re-
fused TO operate on the theory that re-
action had run it's course and commits
sion house advice still deferred outside
buying. On the whole, though, the mar.
ket acted normally and did not suggest
that Il held a position OF excessive Vul-
n~<rabiiity. Certain brakes have been
applied to reckless speculative extension
of commitments for the rise throughout
the whole industrial department. on the
notion that the profits Of wal contracts
must accrue to every Industrial descrip-
ton. The trouble with the market mas
been caused chiefly by the congestion
OF bullish speculation in the industrial
quarter rather than by an unwarranted
price level for real war munition shares.
Bethlehem Steel. which sold at "A new
high level yesterday. Ian apparent re-
sponse to the quite definite statements
Nhat rpntrpt Of ,b. Ipnnsklynni MIA Stesal
Company had been acquired by the
Schwab interests, was the chief strength
ening influence in the session.
II must be remembered in considering
the Stock Exchange situation that quoted
values are enjoying an Increasing sup
port from progressive Improvement in
Fundamental conditions. Money IL cheap
enough 20 facilitate business expansion
and the trade reviews are more In agree
ment that general business betterment il
becoming more regular and i,ss ham
pered by confusing cross currents. Basic
Industry, measured 10y iron and steel
activities. furnishes a barumetriCal fore
cast OF broader business growth. and
the business. community all over the
country has the stimulus to enterprise
which cannot fail tn accrue from the
most bountiful crop SEASON in the coun-
try's history. Were II not for the crazy
quit character OF UUN1'stlt pbilNl'r az
Washington 1t could h. said that domes-
tic factors were wholly conducive to
the further growth of business and
financial confidence In reflection OF the
impulse to development derived from the
great windfalls OF forcign trade which
the country has received.
The weekly bank statement showed "a
loan expansion of almost $50, 900. 900.
This Of course was the effect OF the
shifting of funds incidental to the first
payments on the .Anglo-French loan. At
the same tim the banks gained cash so
heavily that there was only Il decrease
Of about 81 900. 400 in surplus reserves.
1t is q striking ributc TO the eXtraordi-
nary strength and ease OF the banking
position that the launching of the great
financial transaction denoted by the
A~rglo-French loan this week caused not
even n ripple OF disturbance in the
money market.
Sterlinr exchange was still frmer yes
terday. partly in consequence of the
weeks liquidation of our securities from
abroad, tut apparently also because OF
the authoritative statement that credits
supplementary to the A~nglo-French loan
were under consideration. The intina-
ton that the supplementary Cr'dits will
take the form OF arrangements between
bankers is a mint that a large amount
OF dollar exchan." Will h. created IN the
near future which vii. h" OF enormous
advantage In establishing New York
as a world money market.
Wall Street f.lt dur.ng the week some
. restraining influences from the aspects
OF the war abroad. Events In the last
few days have not been favorable to the
Allies, when specifically regarded.
Nevertheless the fact must be taken into
consideration that the Teutonic Powers
have committed themselves to an enor-
nous lengthening of their front, which,
in view Of the pressure to which they
were everywhere subjected, may very
well be interpreted as a sign OF desIera-
lian.