The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-25
FINANCIAL NEWS
AND COMMENT
Stocks Decline Sharply All
Around After Early
Strength.
WAITING ON NJ

An inference which might readily be
drawn from yesterdays stock market
would be that Italy's definite entrance
into the European war on the side OF the
Allies had come 20 late that It had
lost Its influence or had been discounted
sions suggested by an exercise OF mill
tary power which might operate TO
shorten the war. A more careful at
tention to the facts OF the stock market
session would indicate that the position
OF securities vas dominated by the un-
c%ertalntles Of the Westinghouse Berlin ne
COLLATION. to the exclusion OF everything
else. There seemed to he signs OF an
application OF brakes by financial inter-
ests to prevent ~oversanguine specula-
ton from bringing about a situation
which might prove unnecessarily sensi-
tive to ~unfavorable developments In the
one matter OF chief immediate concern.
So far as regares the momentous
news OF the formal declarations which
ranged Italy In the war on the side of
the Allies there was a manifest dispo-
sttion In Wall Street TO Interpret II as
favorable to values rather than the con-
trary. Irrespective OF s%ympathies of
opinion or sentiment. the m~ateriallstic
reasoning OF the market place argued
that the failure OF Germany to keep
the ranks OF Its enemies from being aug
mented was likely to be followed by the
participation OF other nations in the war
and while widening the scope OF the
struggle tending to abbreviate rather
than To prolOng II. Meanwhile the news
about Italy lent itself to Interpretation
In terms OF "a further stimulus for in
dustry in the field OF war contracts.
At the outset OF the Wall Street da
circulation was also given to a notion
that the participation OF Italy in the
war would have the effect OF minimiz-
Ing the consequences OF the Washington
note to which Berlin's answer In being
awaited. but whatever validity attached
TO this was not proved in the Stock
Exchange dealings. Rather II became
apparent before midday that the stock
market was not yet ready to break
away from the restraints OF uncertainty
imposed by doubt about the German
reply to Washington. and after that
the doubt OF the next steps to he taken.
No inclination was shown in any i'm
portant quarter to hold other thar
of'Ao vi Nhc PfIlAAIlb y
sues with Germany. but IL was q rea-
sonable conjecture that the renewal OF
speculation for the rise In stocks could
not base Itself OF the prevailing state
OF uncertainty. no matter nov strong
the fundamental position OF quoted
values nor how strong the forces making
for more active and profitable general
business conditions.
In the early dealings the stock mar
ket was very active at a substantial all
around advance over Saturdays gains.
Before the end OF the morning trading
weakness had succeeded and the sharp
fall In prices showed that the recent
speculative buying had not been OF par
ticularly excellent quality. To account
for the relapse OF the share list the ex-
PLANTATION was made hat hasty liquida-
ton had been started by a false rumor
that the German reply to Washington
had been received and was of unsatls-
factory tenor. Tit very explanation
was a token of the nervousness OF the
market and ~ adequate n reminder OF
untoward contingencies hat through
out the afternoon The Stock Exchange
was In quiet and dull contrast with the
early activity.
The market was also more or less
heavy n without much rally. hut the
close was steady. II looked "a though
what had really caused the days al
formation from strength to weakness
had been a fairly liberal supply OF
stocks from good buyers at the lower
levels lately. The principal price fiuc-
tuatlons were in the war order descrip-
lions, dealings In Westinghouse and
Crucible Steel accounting for about 80
per cent. OF the total volume OF trans
actions. Greater underlying firmness
vas exhibited by standard shares. hut
IL was not in this department that the
hasty speculative accumulation toward
the end OF last week was for the most
part conducted.
Somewhat oddly there was no obvious
reflection In tho foreign exchange mar
ket OF the new war factors. Sterling
was heavy and francs were weak. In
the wheat market there were only in
consequential price changes, although
private reports insisted that the insect
and rust damage to the growing plant
..-.