New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-11
REVIEW OF THE
FINANCIAL WEEK
Check Given 10 UnWiSe
observation-disclosures
Brought to Front.
OUR PROFIT FROM
WAR A REALITY
Steel and Iron Industry Well
Unprecedented Harvests
Trade Outlook Good.

UnreasoninC speculation had reached
such proportions that some shock was
necessary 20 bring trading back TO a
sounder basis. The extent of the ad-
vance ~ stocks OF concerns assumed 20
Doe bcnottng through war made these
issues ready for reaction. Banks have
been lending only around 30 or so per
cent OF the market value Of such un-
matured issues. instead Of the custom
airy So and refused in many instances
10 recognize latest prices as true mar
ket values. This threw a greater bur
den on brokers and their customers.
stock Exchange authorities. in call
ing attention 20 the need of caution in
accepting accounts and Of protecting
them by proper margin, prec'pitatcd
the selling that on Wednesday marked
the elimination Of the decline Lend
ing institutions added pressure on firms
that seemed ovcrcXtendcd. The result
i'm those stocks which had provided the
excitement the week before was fall
almost as dramatic as their ascent.
The warning came In time 70 prevent
serious damage. Lending institutions
have been we'll protected. brokerage
firms generally had guarded them
selves against the break, and those
spectators who saw paper profits fade
away had invited trouble by refusing
TO listen to good advice. Possibly 1t
might have been better TO apply the
brakes earlier, but. after all, the ex-
change is, IN the long run. merely
market place for buyers and sellers TO
meet. It's authorities naturally hest
f,sr
selves. They must make sure that bust
ness is safe. Last week it was judged
that safety was threatened
The break in prices was confined 10
only part Of the list, and recovery was
rapid. An unusual part OF purchases
have beer outright, for cash, and such
real owners need not consider market
fluctuations. Again there are large in
terests opyating in stocks that are
amply able 10 protect their holdings.
Before Wednesdays session had ended
there was fresh buying and q rally was
well under way.
Much Buying III Advised.
That much of the purchasing which
has sent cur industrial stocks 10 previ-
ously unhearG OF prices is III advised
is evident. Concerns that were in
efficiently managed i'm the past may be
expected 10 fail to meet adequately the
problems OF readjusting their affairs
when the unusual trade arising from
the needs of war in Europe is at an end.
How great will be the profits from fill
ing these requirements. how large are
the actual contracts, are uncertain. The
president Of the American Ger and
Foundry Company announced definitely
that his concern had much less Of such
business than had been reported. His
explicit statement played q consider
able part IN the decline.
i Is too much 10 expect that. with
possibility Of unusual profit, traders
will refrain from further excuses
through fear of loss. II has, however,
been made apparent that. even lacking
such bad news from without as came
in the submarine attacks on the Lusi-
tania and the Arabic, the speculative
structure if reared too high must top
pie of its own weight Considerab bic
progress was made in directing sDecu-
lation into less dangerous issues. Cop
per stocks, 50 have conditions changed.
were brought forward as a better
medium Of trading. The railroads,
many OF which are doing better bust
ness and presenting reports of remark
able net earnings. were firm. while the
unstable industrials crumbled. and went
higher afterward. Many changed hands
at their best prices Of the year
For those whose only desire is 10 buy
something that can be sold quickly al a
large profit the railroads are not so
attractive as war stocks. Their earn
ings are known; they offer little Of
those mysterious possibilities that
have so appealed to the speculative
Imagination. They do claim consid-
Grafton from those who purchase with
regard 10 income and who do not wish
TO be left with empty shells or their
hands when the present excitement is
over.