New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-23
Torpedoing of the Arabic
Brings New Factor
Into Finance.
STOCK MARKET WAITS
ON PRESIDENTS ACT
Relief Measures for Foreign
Exchange Halted by Grave
Political Situation.

financial community was more interest
ed in what was going on within the
stock market than in outside develop
ments. 1t gave considerable attention,
it is true, to the extraordinary situa-
tion in the international exchange mar
ket and to the proposals that were
daily being reported to correct the de-
cline in bills on London and Paris.
Nor was sight lost of the significant
advances of the German armies in Rus
STA. But the really engrossing spec
tacle was the stock market. And that
because there was occurring there at
last what had so long been expected,
though not exactly as it was happen
ing.
The unrestrained speculation in the
war stocks had made easy any preGic-
tons that the market was riding to a
fall. The higher these issues rose. the
more their ranks were swelled by
stocks of Indifferent value, the palmer
grew the vision of day of reckoning.
So. then, when there appeared for the
first time, last Monday, the evidence
that proft-taking had become general
among the speculative favorites ex-
pectations ran high that the fateful
day was at hand. But that hope, if
hope it was. was destined to be dis
appointed. There was no debacle. One
day after another passed and the profit
taking continued. But into the places
left vacant by old favorites among the
war issues new favorites pushed. And
the older performers. so far from col
lapsing under the weight of distribu-
tive and public selling, merely receded
a few points and took up new stand
As a whole, it may be said. the market
showed surprising strength; the more
so because its resiliency had never been
so tested since the war speculation be-
gan, months ago.
Market Resists Attacks.
Obviously, the professional interests
who have been behind the more active
war issues have talents of no mean
order Plainly, too, their speculative
grasp is a strong one. To The attacks
Ct the floor traders on the Exchange,
working with might and main to bring
about a reaction of size, they opposed
a resistance such as few could have
expected to see. On no day up to
Thursday did the contest go against
them. When stocks yielded in one
part of the list they brought others
forward and effected diversion. They
distributed stocks to the outsiders and
started not more selling but new buy
ing. Every day in the week saw
million-share session, with stocks NOV
ing widely in both directions. and no
day ended with the bears N the as
ccndart. Until Thursday. that Is. On
that day the Arabic was sunk, a pos
sible casus belli provided and new
aspect given 10 all speculation.
The forces behind the war stocks had
two powerful allies. The first was the
undoubted great improvement IN the
basic iron and steel industry, with all
that that implied, not only for the gen
eral business of the country, but 1or
the stock of the United States Steel
Corporation and of the lesser steer
companies. With the prospect that
dividends on Steel would be resumed
no later than October and with the
knowledge that steel plants were work
ing up to the top of their capacity,
with premiums being paid on bars and
certain other products where delivery
was promi sed within the calendar year,
there was justification enough for
stimulating enthusiasm in the premier
industrial stock-always supposing that
its price had not already discounted all
that could be foreseen. The return OF
the oldtime leader to the forefront OF
the market did what new war orders
and multiplication of orders could
hardly have done. 1t gave, as was said
IAN air of responsibility to the market
an asset in which it had been notably
lacking heretofore.