The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-10
FINANCIAL NEWS
AND COMMENT
Further Collapse Of War Stock
Speculation Unsettlcs
Market.
REACTION Is EXTENSIVE

More OF the recent extreme Of extrava-
CANT speculative expansion In the long
catalogue Of so-called war stocks was
undonc In the stock market yesterday.
The process was carried on violently at
times. with the result that Wall Street
had n very unsettled session during the
greater part of the day. Some strength
was displayed In the early dealings as a
result Of short covering. but this only
furnished IA better level for renewed
bearish operations and for the realizing
sales which were made In response to the
liauidating impulses generated by the re-
adjustment movement which has been
going on in the past few weeks. Trans
actions were ON a more active scale
than in Mondays session. the total
reaching well above "A million shares.
The leaders In the further breaks were
St~udebaker. Willys-Overland. Baldwin
Locomotive. Westinghouse, Tennessee
Copper and Allis-Chalmers. They had IA
numerous company and the course OF
prices In the curb market was similar to
that on the board. Losses for the day
ranging from 3 to IS points were shown
at tile lowest prices and these. added 10
the previous ~shrinkages this month from
the expanded figures OF October. sug
gested that the market must have made
very considerable progress toward a
restoration of its balance, particularly as
the general list of seasoned descriptions
continued to offer resistance both to di-
rect selling pressure and to the un-
settling effect Of the persistent weakness
of the wal order shares.
Foreign selling kept UP. but there was
a much more general liquidation from
commission house traders and the oTct-
ings thus brought In encouraged the az
gressiye prosecution of operations Tor
the fall. In tho last hour without
change up to the close there was enough
weakness and heavineSs In some or the
more depressed quarters OF the market
to sugges, In connection with the lacl
Of substantial and sustained rally that
tn" selling movement might not nave
run its course.
The reaction began obviously TO have
the customary effect always witnesse.
when there has been "A pronounced anc
prolonged break in the trend OF spec
ulative thought and action. Also IN
impairment of equities in commitment
= for the rise was a more tnsistent faCto'
In the liquidation. On the other hani
good buying rather than important sell
ing yisibly increased with indications 81
"A still more important absorption. par
ticularly in the standard and staple Is
sues. in the event Of further unsettle
Ns~f
ment.
There WAS no occasion for recourse &c
news outside of the market to furnish
explanation or argument for the fea
lures of the session. Wall street IA
usual ranged far afield for factors e
account for the decline and found then
in the European advices or domesti'
~politics according to the fancy of TIN
inouirer. The real factor was internal
as the aspects OF the great fall of prices
for the war stocks show clearly. thi:
fail having taken place practically II
the pas, fortnight while the rest 81 tn
market has been giving an exhibition
Of underlying s~oundness.
There has been for some time an es
seutially weak market position in
large part OF the share list. the part II
which an extraordinary speculation
centred itself this year. In contras
with this technical situation there nav
been conditions outside of the marke
which have been growing more strongl
constructive all the time IN their ap
pNca,ion to the more enduring values o
securities. Indeed, some OF the new
' of Yesterday bore on this very point.
The I, port balance for last week Wa
exported as about $4,000, 600. Mean
while the outlook for our foreign trad
is inthnated by the arrival Of IA Frenc
commission which is to look over IN
ground of our industry with regard
III. purchases which will have to b
made eventually. not for war, but 10
prare. 1t might be noted also tina
$1,000. 900 gold was added to the year
import movement.