New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-05-06
FINANCIAL RECORD
HERE AND ABROAD
Threat of War by Japan
and China Followed by
General Break.

The general break in prices yester-
day afternoon that followed report
that Japan and China had broken of
diplomatic relations was more than the
healthy reaction Of an overbought mar
ket that part Of the financial commu-
nifty had been awaiting. Losses OF l
and 2 points were common IN invest
ment issues and selling was continued
to the close In the last hour the vol
ume Of business was very heavy and
movements toward recovery made little
Roadway. Bonds as well as stocks were
depressed, the principal losses appear
ing in the speculative and convertible
issues.
The Far Eastern question WAS still
open for peaceful settlement when the
market closed, but the possibility OF
an immediate outbreak of hostllities
and of this country being put into a
delicate position through its policy OF
maintaining the open door in China
was recognized. Japan, emboldened by
the occupation of European nations
with their own troubles, has made de
mands so arbitrary that apparently
even the weak government OF China
may not submit.
There is now the threat that our
trade on the Pacific may also be IN
commoded by contraband and embargo
regulations, though II may be that the
privileges Of treaty ports will modify
any attempt by Japan to cut off Chlna's
trade. The Far Eastern nations are
excellent customers for our cotton and
cotton goods. and in the market for
that staple here prices collapsed toward
the end Of the day.
On the Stock Exchange securities
around the opening were firmer, gains
Of up TO point being fairly common.
A good deal of this advance was lost
before the first hour had ended, and
for the rest Of the morning prices were
fairly steady, with such issues as Cot
ton Oil. Rumely, Stude baker. Virginia
Carolina Chemical and Bethlehem Steel,
enlivened by detail Of a new war con-
tract, improving. News Of further as
saults by German submarines and
claims from Berlin of successes on
both fronts proved additional depress-
ing influences when the bad news came
from the Far East
Reading was under heavy pressure
and made a maximum loss of 3 points.
United States Steel, which had gone l
point higher 10 over 80, fell back 3.
Union Pacific, Canadian Pacific, New
York Central and other standard issues
fell off rapidly. Bethlehem Steel main
tanned a good deal of its early rise of
10 points, but the rest of the war group
showed declines that reached more than
5 points in Baldwin Locomotive and
more than in New York Air Brake
and American Locomotive. Westing-
house. Studebaker, National Lead, Cen
eral Motors and Lackawanna Steel all
made extensive losses. The copper
stocks were relatively firm, though
Amalgamated yielded toward the close.
Westinghouse 3 per cent convertible
bonds in heavy trading moved contrary
TO the general course Of securities, at
their best being 8 points above Tues
days close. Expectation that to re-
move the restriction against new stock
issues these bonds would be retired at
los accounted for the advance.
Further ease in monetary conditions
was indicated in freer offering Of time
accommodation. The foreign exchange
market ignored the tenor of European
war news, rates on London and Paris
showing a little tirmness, while Ger
man exchange weakened.