The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-03
FINANCIAL NEWS
AND COMMENT
Irregular Price Movement i'm
stock Market, With Less
Trading.
TALK OF WHEAT CORNER

Some signs wero noticeable IN Wall
Street yesterday OF growing disposi-
ton to temper optimistic expectations
for values with a cautious regard to tho
fact that a good deal OF progress had
been made in financial recovery and
business readjustment and for the sea-
sonable as well ms abnormal possibilities
OF adverse developments.
Tho violent strength OF tho grain
markets attracted more attention and
II Is needless TO say that the phenomena
which they are exhibiting are conducive
to a prudent regulation OF financial and
business ventures. The situation at
Washington has begun 10 impress itself
more emphatlcally on the banking COM
munlty as rather detrimental to con-
structive efforts. Furthermore. fresh
emphasis was given by foreign develop
ments to the desperate character
OF the European conflict II Is not
altogether likely that our financial mar
kets can fail to show at least occasional
constituencies 10 occurrences In the war
and considerations arising therefrom,
however much OF economic advantage
for the United states accrues from the
war.
symptoms OF a more conservative in
clination In the stock market may not
as yet be trustworthy. Sentiment IL
more or less persistentry in the hope
full mood OF January, but II Ia to be OBJ
served that dealings In stocks have been
on a contracting scale in the last two
or three days. Transactions in bonds
are also In somewhat diminished vol
umo, although there Ia no essential
change in tho inquiry for good invest
ments
So far as yesterdays stock market
was concerned Il seemed TO be very
largely an ultraprofessional affair
characterized by ntful efforts 20 make
the list move upward. In the last hour
United States Steel was pushed higher,
9ut the response generally evoked was
Of brief duration. The course OF prices
for the session was irregular on the
whole. but the market seemed to have
the same firm undertone which has been
in evidence for several weeks, even in
the pronounced reaction OF last week
Manifestations OF bullish speculative
effort were particularly apparent In the
market for United States Steel Tic
dubious rumUs which were circulated
on Monday and had the effect OF slim
ulating short covering were augmented
by the PRONUNCIATION OF a discredited re-
port tina, the Government contemplated
tho discrimination OF It's suit against
the Steel Corporation. There was much
talk about the dimensions OF the short
Interest In the general list, hut sup
position along this line seemed TO ignore
the opportunity for retirement OF bear
lsh contracts furnished In the last few
days and the further fact that pur-
chases for the short account have con-
stituted the bulk OF the buying lately
Moreover, IL is not usual to encounter
an Increase of the short position at "A
time when there has been so much
prevalence OF optimistic opinion as OF
late
II still remains true. however, that
the market enjoys the support of patient
accumulation IN periods OF recession or
weakness. even II II is also true that
buying OF this kind reckons on a fairly
steady supply OF securities from abroad
II IL almost implicit In the dimensions
Of our export trade movement, when
related to the shrlnkage In our trade
imports, that large total OF our Sc
curities will come back to us gradually
and in accordance with the markets
ability to absorb them.
Some OF the edge Of apprehension on
account OF the shipping bill controversies
was dulled by the Washington adyices
pointing TO amendment o. the measure
In the attempt to get II enacted nj the
present session OF Congress. At the
same time the elimination OF its uterua-
tional hazards does not change the es-
sential character Of the shipping bill
a. vicious political departure and an
utterly unsound economic experiment.
Portents OF complications in trade and
financial reckonlngs were furnished by
tho informal notice reported to have
been given 10 Washington that the Brit
ish Government would define an food
stufts as contraband II this should
have the consequences Of checking some
what he runaway rising market in
wheat and other grains II would be to
that extent beneficial. There Is nothing
o, a favorable nature In the prices which
wheat Is now making. The May option
sold at 50 yesterday. up almost nine
cents a bushel for the day. and The July
option made large advance and showed
that export and speculative buyers were
turning to the new crop.
All the tokens OF the grain market
are that wheat NAV be "cornering it.
self" and the sequel Of cornorcd wheat
will be not only q vast amount of pub
lie discomfort and political excitement,
but IT, as Is apparently the case. the
corner Ia the logical result Of the war
rather than speculation II will mean a
large offset to the special prosperity OF
the grain growing West There has
been IA spreading speculation for the rise
In wheat but there is no evidence that
operations have been deliberately en-
tered into to corner the cereal On the
contrary. all the facts go to suggest that
the country In confronted with the pros
pect OF heavy strain resulting from the
competition OF domestic consumers with
export buyers prepared to pay any kind