The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-12
FINANCIAL NEWS
And COMMENT
Stocks Rally When Subjected
to Further Professional
Pressure.
RAILS AMONG LEADERS

Overnight news added nothing to argu.
ments for speculative uncas.ness In Wal
Street yesterday. On the contrary. the
compliance OF Germany with Washing
toms demand for the recall OF the Ger
man army and navy attaches was a
suggestion that apprehensions about the
sggravation OF our strained relations
with the central Powers had been specu.
latively exaggerated. So far as the
stock market itself was concerned the
session suggested tina constructive ten
denotes. were still NOR, or less In abey-
ance and that professional traders, who
have been disposed for weeks to operate
against prices, had the market very much
to themselves within certain limits.
These limits were defined again. as they
have been no repeatedly defined In the
past month. by the disclosure Of alsorp-
tive capacity during intervals of price
recession.
Trading was moderately active. but
tho units Of dealings were small and
quite In proportion to the scale OF busl-
n.ss which has ruled lately. The open
Ing was steady, ~ 1t WAC followed by
. general drive which carried quotations
Q point or so below Fridays close. on
tbe Ftfuc Flo'NN WtIt Tetully thhti,
and when the selling movement stopped
purchasers had TO bid UP for their
requirements. The market turned dull
on the rally. n token hat while q good
deal OF buying power seemed to await
recessiois 1t was not yet disposed to fol-
low prices NJ very far. The dulnesa
evoked no renewal of pressure. however,
and there was n further hardening OF
the list In the last hour. the Significance
OF which was not materially qualified
by reactions In the last few minutes on
profit taking by traders.
Railroad stocks, with New York Gen.
trail and Norfolk and Western leading.
were "a particularly strong feature Of
the market. their rise implying that In
vestment and speculative interests were
not wholly blind To the argument for
values which Is being shaped by She
development Of profitable business ex-
pansion. Al the same time the general
market and specialties rallied easily
where they had been much depressed
and some issues like United States Steel
exhibited underlying frmness through
put
Cotton broke about So a bale. unques-
tionably an effect Of the congested spec
ulative long account in the staple. In
the foreign exchange market sterling
Whb IL ~ 'aEtNt. 'ut ~ WI h[piiuohA
have established themselves in the last
few days at new high levels Of recovery.
An important contribution to this sus-
tained strength has been given by some
Increase of liquidation of u securities
from abroad.
One ~seaue Of the British Gov
ernment's plan to mobilize British hold
ings OF American securities has heen to
stimulate such selling. but the scheme
a. a whole is %favorably regarded. II
will work for II regulated liquidation
Of securities and should furnish a basis
for an increase of loa accommodation
from our banking resources which will
help to stabilize exchange and sustain
our export trade. So far as concerns the
effect OF foreign liquidation on our mar
net II Is to he noted that our level Of
quoted values has made a substantial
rise this year against precisely such sell
ing. The weekly bank statement showed
an increase of more than $4,000. 600
IN loans. with only II trif,ng decrease of
surplus reserves.
A circumstance OF the stock market In
the past week which Wall Street seemed
to find peculiar was its obdurate unre-
sponsiveaess 10 good news. but 1. 10 to
be doubted If this exhibition OF apathy
was at all remarkable. A resting period
was plainly portendcd by the excited ac-
tivity of the market in recent months.
and eXcusee for q conservative attitude
lately have been furnished by considera-
tons connected with international and
domestic politics. Thu war has not been
going well for the Allies. although fnan-
cial opinion on balance has not been
changed about the eventual outcome of
the war. Tho approaching dissolution
OF the Anglo-french bond syndicate has
h.A1 hArn1t.I lA. ,,fa,aA l,Aa
in the price of the bonds. but there Is
NJ question tina. in a free and open
market the loan will ultimately find q
very satisfactory Judgment, for II these
bonds arc not a good investment II
would be difficult 10 prove that any In
vestments are worth having at this time.
our neutral relations to the war are
actually IN no greater state of strain
than they have been since last spring,
even though Congress Is In session. As
for domestic politics the political out
look is very well denoted by the Admin
istration programme. Nothing could ne
more practical and constructive than the
purpose denoted by thu preparedness
policy which President Wilson has adj
vocated. and the movement which he
favOrs for "A liberal readjustment Of Gov
srnmen relations TO the railroads IS
Illustrative of a great change in political
thought.
Influences move directly hearing On
values have been exhibited in all the
indexes OF Increasing trade and indus
trial activitN. Gun exports are record
breaking despite Inadequate shipping
facilities. The United States Steel cor
poration's tonnage statement for Noyem-
ber. showing a gain Of 100000 tons
following tho October gain OF $4,000
tons. with prices for steel products still
rising. is a gauge Of active forward en-
terprise in all lines. for the bulk OF steel
orders lately have come from domestic
sources. Meanwhile the years profits
arc beginning TO get into public hands
through the increased scale OF dividend
disbursements, n particular feature Of
tho past week being the enlarged cop
per dividend declarations.
Tina such matters have had no
marked reflection IN the stock market has
been the cause of bearish efforts on tho
part Of professional spectators and has
provoked some liquidation by timld pub
lie traders. In the long run, however.
developments of the sort only make for
optimistic confidence In the future OF the
securities market,