The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-04
FINANCIALLY NEWS
AND COMMENT
Shock Of Attack on J. p. Nor
gan Fails to Upset stock
Market.
AGAIN PROVES STRENGTH

With attendance on the floor OF the
exchange. in the commission houses and
In the street generally cut down to the
minimum everything pointed to q quiet
day IN the stock market. The attempt
upon the life of J. i. Morgan supplied
an incentive to activity that was other
wise lacking. But even with this and
Paul stock the market was a narrow
and restricted ouc.
From the time the news OF the at
tack upon Mr.. Morgan Was received
II was. Of course. the dominant factor.
Before this. however. the market had
already been somewhat upset by re-
newed weakness in 81. Paul stock, which
was communicated to other stocks In
the same group and had an unfavorable
effect generally. This weakness plus
professional operations for the fall plus
scattered selling from small spectators
for the advance inspired by a natural
timidity to hold stocks over the holi-
DAY caused small but general losses
throughout the active list.
The Morgan Incident acccntuated the
selling movement. especially among the
professionals, and the declines were In
most cases increased. But that was all.
There was no trace OF panic. Prices,
on the contrary. held with remarkable
steadipess. all things considered. A fail
rally occurred before the close. although
some trace OF vousn remained.
Undoubtedly the absence OF excite
ment over the sensational news of the
day resulted from the ract that the first
reports that Mr.. Morgan had been shot
were accompanied with the information
that the wounds were not OF n serious
mature. This ook the sting out OF the
bad news. Nevertheless. II must be ad
mitted that the action of the market
gave evidence of underlying strength.
Ar overcxtended position on the Ions
side could hardly have taken the news
20 calmly. The stock market has been
subjected to more than one severe test
during the past week and has acquitted
itself we'll. Whatever may happen next
week II II at least re~assuring that the
speculative position IL probably In good
shape.
Tho weakness IN 81. Paul was still
without any specific explanation. II lie
significant. however. that the decline has
been maintained and that stocks of
similar character are showing a ten
dency to decline in sympathy. That dis
poses OF the theory that the fall was
the result Of a single large selling order
being suddenly thrown upon the market
to the accompaniment Of heavy short
selling. Some such incident may, in
deed. have started the movement. but
the absence of any substantial recovery
shows that stocks are still coming to
market. The selling has been attrib-
uted to foreign holders. but the source
is rather less important Just now than
the disconcert'ng lack Of demand. Talk
of n cut In the dividend would hardly
account for It. The st. Paul's earnings
have been 10 worse than those OF sev-
oral other companies and are Just now
apparently nj the upturn. One reason
for the current lack Of enthusiasm for
railroad stocks OF an investment char
acter is the state OF the market for
capital. Railroad stocks Of his class
are affected by the price Of capital. al
though. Of course. In less degree than
bonds. and are at least temporarily out
~ favor with the speculative element.
which is devoting its attention almost
mtirely to the industrial department.
The stock market during the week
was a rather tiresome AFFAIR. Prices
ngain huns in the balance. influenced
on one side by the progressive lessen
ing of the tension In the relations be-
tween this country and Germany and
m the other by the new aspects OF the
military situation. The frank admis-
sion by the great leaders In England
that the war Is approaching q critical
stage for the allied fortunes and the
Increased activities Of the Germans on
the western front are enough to inspire
n spirit OF caution. This In not per-
haps so much because OF increased
fears regarding the ultimate outcome
OF the struggle as that the events on
the western front within the next two
months or so promise to have an all
important influence upon the duration
of the war.