The sun., 1915-06-30
FINANCIAL NEWS
AND COMMENT
stock Market Heavy on a
Trading View of the City
Bond Sale.
EXCHANGE STILL DROPS

After moving more or less uncer-
tanly during the earlier part Of the
session the stock market turned reac-
tionary and without much activity pro-
ceeded to sag to somewhat heavy
close. Dealings seemed to be aug
mented by an increase Of foreign SELL
ing. although liquidation from abroad
continued to he most pronounced In
bonds.
United states steel appeared to be
In persistent supply from foreign
sources, as were other standard issues
on the International list. but while
the technical market position Is accord
ugly affected, Il Is understood by this
time that the return OF our securities
from Europe s in very small volume
in comparison with our capacity to alb
sorb them. For example. 1t Is hardly
enough to have even an occasional
traceable influence in strengthening the
foreign exchanges. II II, in the larger
view. welcome although partial on
set to our huge exports OF war NUM-
tions and ordinary goods and commodi-
ties and represents, not a foreign opinion
adverse to our prospect. but the ne
cessities created by war conditions in
the centres where the sales originate.
In it's more or less detected immeii-
ate mood. induced by the relative in
crtia of the share list this month ana
the refusal of quoted values to develop
any forward tendency In response to
constructive factors. Wall Street cast
about yesterday for depressing cons'd-
erations and found one OF them In
the recent Increase OF foreign liquidation.
Another was furnished by the slack
and backward state OF general business
outside the lines which have been dl-
rectly or indirectly stimulated by alb
normal foreign trade movements. al
though In the long run It In a question
II the stock market is presenting any
thing more than seasonable aspects.
In speculative circles the New York
city bond sale was pitched upon as an
! excuse for reactionary sentiment as re-
CARDS stocks. Indications before the
sale that the price realized for the bonds
, would he low in comparison with previ-
| Gus sales overshadowed the operations OF
| the professional trading element, which
was responsible for most OF the effort
on the Stock Exchange. After the pub
| lication Of early and important bids,
with the disclosure that some ranged
/ from par to only n little above II. there
was a little additional pressure on
stocks. but in the main the fluctuation Of
prices throughout the list seemed to be
governed chiefly by the making or un-
doing of professional commitments.
/ There Is no question OF course that
! the outcome of the city bond offering is
significant OF the way in which the capi-
( tai market Is feeling the influence OF
! the wars demands The terms OF the
new British war loan and the British
! selling of a variety of our bonds lately
( to obtain funds for subscription to the
/ war loan were more or less responsible
{ for the comparatively low average OF
bids for the city's obligations. On the
other hand there Is no basis for the ex-
pressions OF disappointment made yes
terday in official and unofficial quarters
over the result of the sale.
No sensible person expected that the
city could make its largest single offer-
ing OF bonds and obtain In these war
times prices which made no allowance
for the uncertain elements in the
financial situation. As a matter Of fact.
! a substantial portion OF the financial
community was not at all surprised by
the bids for the bonds and considered
that the city had no cause for COM
plant, while there was no warrant for
drawing depressing deductions Of gen.
eneral bearing from the kind of mar
ket which the city had to meet. There
are in the circumstances which the war
has created conditions which call for
processes OF adjustment affecting fxed
charge securities particularly. but all tine
indications OF these conditions are that
the adjustment will be gradual.
In the foreign exchange market the
day made further additions to the records
o. price decline. Demand sterling sold
under 4.T6. but was on the whole rather
steady. 1t was in other forms of re-
mttance that weakness was most mani
fest. including German exchange. There
was another drop in Italian bills, hut
the unchecked fall OF francs attracted
chief attention. What French exchange
is probably suffering from is the as
tonishing lack OF vision which French
Government finance seems to have had
OF the requirements OF the war. France
has yet to adopt any comprehensive
plan for the financial conduct of the
conflict, and the task cannot fail to be
complicated by the difficulties which