The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-13
FINANCIAL NEWS
AND COMMENT
Strong Upward Movement I'm
Stock Market, War
Issues Leading.
SHARES IN SCANT SUPPLY

AItnOugh there were Indications or no
little uneasiness among speculative
holders Of stocks before the opening of
the market yesterday and although there
was some early weakness the course
Of prices proved a disagreeabie sur
prise to the traders who had been
operating bearishly for some time past.
The Stock Exchange session ended with
all around strength following a Arm re-
day. which va emphasized by agrees
sive general advances in the last hour.
Closing gains ranged all the way UP to
10 to Is points among specialities. while
the average rise was OF substantial pro-
portions.
Dealings aggregated about a half
million shares and included both obvious
buying for the long account and an
expensive retirement of short contracts.
War stocks in large numbers were
leaders IN the upturn. but the move
ment spread to all descriptions in the
afternoon. when constructive influences
were particularly asserted by the United
States Steel shares. the rise In which
seemed to be n thoroughly legitimate
expression Of he improving conditions
In basic industry. Even the railroads
which had been suffering from SO much
unmerited disfavor displayed advancing
vtgor inc altogether Wall Street was a
more cheerful place last night than 1t
has been for a fortnight.
1nclinations to draw premature con-
-
values TO max uninterrupted progress
at this time were restrained In view Of
international uncertainties. but It Is not
altogether manifest that the market
signined nothing save n natural recoil
from excessive speculative depression.
II Is true that with the early weak
ness of prices there was no volume
OF offerings and that when bear
ish traders started to cover they found
stocks In great scarcity. Here was tes-
timony TO the fact that the market had
not only been sold out but oversold. with
an implication that recent sales had been
absorbed by strong buyers and hat the
list acted as markets act under such
circumstances. Yet all this seemed to
be of more than technical Importance.
1t evinced the sound structural position
Of the market. but II also suggested that
Wall Street fears of late urged on
various grounds had been overdone and
that the amount of bearish activity had
been In undue proportion to the genuine
liquidation of foreign n domestic
origin.
One way in which the session could
be interpreted was as a token OF the
financial consensus on the posture OF the
country's relations with Germany and
as evidence Of the opinion that there
was no reason for experimenting an i'm
mediate breach OF those relations he
cause OF the new German note. The
prevailing view OF the financial COM
munity seemed to be that the note. after
all. was hardly worse than had been ex-
pected. n to that degree II had been
discounted in the stock market. Ii was
the view. furthermore. despite the
unanimity OF country wide dissatisfaction
expressed over the terms OF the note.
that the communication was to he con-
strued as designed o for German con-
sumption than for persuasion at WASH
ington. and that Germany's real at:i-
tude was betokened by the way In which
its submarine warfare had been con-
Quoted since tho sinking OF the Lusi-
tania; In short. hat actions spoke
louder than words and that accordingly
Washington would be in no haste to
and diplomatic negotiations In de-
spair of achieving a recognition OF I'M
comprehensive neutral rights
An explanation which the feather
headed speculative element seized upon
IN the late afternoon to account for the
recovery in stocks was furnished by
rumors OF gains by the Allies in the
European war. These rumors seemed
to be bred of the rise in prices instead
OF being the cause OF II. although IL Is
quite possible that the tide of military
fortunes. having run toward Germany In
the last two months, may be about to
set In the opposite direction.
In all probability the true interpret
alton Of the market was furnished by
the conclusion of the British war loan
operation. Reference TO the recent
chronicle OF the market shows that II
was just about three weeks ago. or
elmcst In coincidence with the
ment OF the British programme for f.
nancing the war, that the stock market
turned downward. The programme had
II variety of disturbing aspects and con-
tngencies and the actual process Of
floating the loan communicated disturb
Ing influences throughout all financial
markets and involved both securities
and funds available for investment.
Furthermore. there was room for
doubt about the substantial success of
the loan. n doubts on this score were
enough to have a disquieting effect even
here. The loan has now been foated. and
the reports agree that the subscription
which It received was a gratifying sur
prise. This would mean that what has
probably been the principal pressure on
our securities market has now been ma
terially lessened, II not wholly lifted as
yet.
A more hopeful notion Of the German
-
financial reckoning. Apart from the fore
going matters also, the demonstrated po-
sition Of technical strength In stocks
was a factor of some consequence. and
meanwhile It Is obvious that by its late
the share list has been put In
shape to reflect the persistent bet
terment of underlying factors OF value
to respond to good news more or
less neglected last week. such as the
rat,rp aud tho rnaa.,o 90 -