The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-31
FINANCIAL NEWS
AND COMMENT
Stock Market Still Hampered by
the Minimum Price DIFF
ficulty.
NEW FIGURE FOR STEEL

The stock market yesterday did NOT
continue the rather exciting selling move
rnsnt which was under way on Friday
afternoon. On the contrary. trading
tended toward the buying side. probably
because OF a disposition 20 cover short
commitments. The week end evening up Of
contracts after the pronounced reaction
Of the last few days would naturally
take the form OF purchases, but there
were also persistent evidences OF the
underlying strength OF quoted values
in general There was renewed alb
sorption OF specialtles, and while some OF
he standard issues still seemed 10 be
In supply the constructive aspects OF
ne market were emphasized, even though
reflective observers preferred still to draw
prudential differences from the uncer-
families OF the position OF the United
States Steel shares and the liability OF
The list to unsettlement from fresh ex-
perments with official minimum prices.
In the early dealings the market waS
duil. but II was soon evident that there
wac no pressure Desultory short cover
ing began and became Little more ur.
gent In the second hour when stocPs
rallied ell around the room. Towurd
The close recedlus tendencies were mani
fest, and IL was not altogether apparent
thsf the market had yet found itselt
after tho weeks interruption of the train
of bullish sertlmen. and effort
Short covering In New Haven and
The persistent nrmness OF United states
steel preferred helped 70 contribute
Strengthening influences. There seemed,
however. to be very little inclination 20
buy United States Steel common at the
minimum prico u so Accordingly *
was not surprising that al the close the
stock Exchange committee announced 4
still lower figure. At the same dine Il 10
very much to be doubted that dropping
the price TO 3S accomplishes much after
al thst has happened.
So much tampeiinE with the steel mini
mum begins u provoke criticism a. an
excessively arbitrary interference with
the market and can hardly fail 10 make
Tor further unsettiemcut OF the list IN
general on all accounts " would seem to
he better now TO make o large cut IN tho
minimum price Of the Steei shares or,
what u better yet To take on the embargo
of minimum prices from the whole list.
All the Indications are that tho market
Ia immune from the disturbances which
we're apprehended when the protective
prices were establl shed.
II would be just a. easy and lust as
sensible to close the Stock Exchange ar
bitrarily again In the event OF threat
enlng overwhelming 81 quoted values by
liquidation as Il would 10 to allow sus-
pension Of the market to be automat-
ically effected by a rush OF sales against
the obstacle OF the minimum prices The
market clearly wants to respond to the
vastly encourag ing factors In the financial
and business situation and this is almost
assurance enough that protective prices
are no longer needed. Nevertheless the
experience which Wall Street is having IN
tho eXasperating emblrraSsments OF
artificial restrictions on trading Is Great
Ing AN unexpected set 81 real difficulties
FOR the financial community.
The weekly bank statement disclosed a
snrthar EXPANSION of loans and danositS
which was testimony TO the more active
money market that is developing. Il Is
to be noted though that monetary ac-
tivity is not accompanied 10y hardening
interest rates. Indeed 10 promises to he
a long time besAre lenders will 10 able
20 command much more remunerative re-
'urns than now oncr. They must hnd
their satisfaction IA the announcement
which the features ~ money have given
20 corporate borrowers To proceed with
Arrangements for financing the payment
81 maturing security Issues and pr0vid-
inF funds for fresh expenditure.
On AL accounts the most important and
Voptlul u'NelopneUl or january mas been
tho incentives furnished 10 the Notation
~ long time railroad bonds AZ reasonable
rates, and there Is being laid in the new
financing movement now under way the
basis OF genuine. substantial and enduring
l'ettermeut IN general business. The dis
continuation o. the United STAGES steel
dividend was notice that trade and IN
dusuial conditions We're only i'm process
- Improvement and that material re-
rovery In volumes and values was stlll
20 much a matter OF the prospect that Il
could not be reckessly discounted. How
ever, all tho returns from trade and in
dustry show increasing signs that business
~ picking up. one Of the most significant
TOKENS ~ this IL provided by the progress
mat debtors are making In various parts
OF the country. conspcuously in the South
IN paving or the notes which they were