New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-07-27
FINANCIAL RECORD
HERE and ABROAD
Swift Break and Recovery
on News of Sinking of
LeelanaW.


war time was shown in the swift de-
cline with which the war stocks yes
terday morning met tn news of the
sinking of the Lcelanaw. When from
insufficient details IL seemed that this
might possibly be the unfriendly act
against which the German government
had been warned. the speculative in
dustrials broke 4, b. 6 and in the case
of Bethlehem Steel Is points from the
high prices reached earlier in the ses-
sion. Fuller accounts revealed that the
vessel was CARRYING contraband and
that the destruction followed visit and
warning by the Germans. so apprehen-
sion was relieved. Recovery was rapid.
the whole furry being over in about
half an hour. of which the break occu-
pied less than fifteen minutes.
The effective way in which the mar
ket came back after the break makes
apparent that the speculative position
in the war stocks is stronger than
might have been supposed after the
recent prolonged advance. Involved in
this rise in industrial stocks supposed
to be profiting by European business is
confidence that the war abroad has not
destroyed the power of this country to
recover from industrial depression.
Though much of the purchasing of in
dustrial favorites has been blind. it
is not wholly limited to that of the
reckless speculator The outside pub
lie has of late seemed more disposed
to back UP its belief in the country by
stock market purchases, and even
though much of this outside buying
may have been based on little knowl-
% ba " oil
stock than it had been given credit for.
The news of the sinking of the Amer
lean freighter was received around the
middle of the second hour. when the
market was little off from its early
best. At the outset report that a great
combination of Independent steel COM
Panies was under way served as an eX-
cuse to put up stocks of some of the
concerns named. Bethlehem Steel
opened points higher, at 2l5, a new
high record, and added Z points more
TO its gain. Crucible Steel advanced
over points and Republic went
higher Can and Baldwin Locomotive
opened at high records. Baldwin later
going more than 4 points above Satur-
days close on reports of war orders
and Can over .. Allis Chalmers. Beet
Sugar, General Electric. Colorado Fuel
and Westinghouse all had gains of
Point or two.
Traders sold at once when word Of the
submarine attack came and stop loss
orders caught on the decline accentu-
ated the break. Bethlehem Steel. from
around 119, fell in a few transactions
TO HOE and soon went to 107. Else
where the declines were not so abrupt,
but Baldwin dropped nearly points
from its best, Crucible. Can and West
inghouse around and Beet Sugar and
Allis Chalmers 4 or 5. United States
Steel. which had improved a fraction.
was off over points.
Buying orders that had been placed
under the market checked the decline.
and as IL seemed that safety of the
freighter's crew might mean that it
had been boarded and time been given
for them TO escape traders bought also.
The recovery came quickly. signs of an
upturn appearing in less than fifteen
minutes from the first break. The
volume Of trading was immense. the
hours total of around 100000 shares
giving no adequate idea of the amount
of business done in the height of the
excitement. Though the rally was ir-
regular, a good part of the loss had
been made up by noon, and around .
o'clock stocks were around their best
again. Bethlehem Steel. Baldwin and
General Electric went to new highs
later.
In the last hour the rise invited
profit taking, and the course of securi-
ties was uneven. with a little of the
recovery lost. At the close, however,
the tendency was toward frmness
Railroad stocks, in which the specula-
tive position is small. were quiet and
generally moved little in the early
break. Reading. Union Pacific, South
crn Pacific. New York Central and Le-
high Valley showed losses of a point
or two. st. Paul. still depressed by
dividend doubts. made a new low for
the year and closed point or 50 down.
The copper stocks were rather soft on
weakness in the market for the metal.
Monetary conditions at the begin
hing Of the week were almost as favor
able to borrowers as prevailed during
the week before. A little frmer ten
dency appeared in time accommoda-
ton, as lending institutions are pre-
pared against possible government Dor
rowing for war denfence and for more
activity in general business later Call
money continued abundant. renewing
at IA per cent. The foreign exchange
market was quiet, sterling ruling
steady al about Saturdays closing fig
ures.