The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-22
FINANCIAL NEWS
AND COMMENT
General Break In Prices Under
Heavy Liquidation In
I Market Here.
Due TO ARABIC PROBLEM

There was a general break In prices
yesterday under heavy liquidation. due
IN the main to an increase OF tension
over the situation created by the sink
ing OF the Arabic. The stock market
opened quiet and for a time held well
enough. But soon the selling move
ment was resumed, steel common being
the principal Target at frst. The move
ment gained in breadth and intensity
a. the session wore on und at the close
severe declines were recorded through
out the list. Hut II the market was
disappointing in that II opposed less
resistance to the pressure than vt did
on Thursday It wa still an orderly af-
fair with an entire absence Of panic.
Buying OF a substantial character took
place on the fall. -
Reasons for the Increased weakness Of
The market were easily supplied. For upe
thing, developments in the Arabic stu
alton were such as to disappoint hopes
that exteruating circumstance might
be found that would put the incident in
different light. Thu tone OF the COM
mem made by the press of the country
and such limitations as were received
Of the Washington attitude were cal
cuiated to emphasize the gravity OF the
situation. IL Is likely that to some ex-
Gert the first resistance OF prices TO the
bad news was due to the great impetus
Of the upward movt ment. A broad
buying movement OF the kim that has
been under way does not cease In a
moment. The effect upon the specula-
Give position of "a shock OF this kind IL
cumulative. 1t Is felt In Stock Ex-
charge circles long before II commu
aicates itself TO the country at large.
A Saturday market. when important
outside developments are impending,
usually witnesses "A general closing out
of speculative commitment OF the OPP
p%ortunist sort. In the present rervous
state OF sentiment the Discrimination to
bold stocks over Sunday was naturally
very pronounced. Reports OF a 6.feat
Of the Russian fleet at Riga was a minor
sveGt that probably played a part.
The developments In the Arabic case
may be expected to be the overshad-
owing influence In the markets for some
time to come. The uncertainties in
this matter naturally make judgments
Of the probable course Of the market
doubtful. A nervous market win con-
tinue until things are settled one way or
the other. On the other hand. the mar
ACT dlTtauN SteunS 10 nave gone SoTle
distance toward ~discounting a break in
diplomatic relations between this coun-
try and Germany. In point Of time at
Least the reaction has been a stifr one.
Weak holdings have been pretty thor
Oughly shaken out and the market is
probably In a position where sharp re-
coveries may occur at any time.
The trade reports of the week were
again extremely satisfactory. They
speak of a gradual expansion Of the re-
uval OF activity with n promise Of pro
gressive Improvement. our export trade
shows no signs Of slackening In spite
OF the difficulties raised by the foreign
exchange situation. New lines OF bust
ness and new corporations are daily
being helped by this broad demand for
-Nar supplies and the indirect effects Of
this business are to be found even in the
traffic returns Of the railroads. The
weather. while II has not been entirely
favorable for certain lines Of trade. in
the main helped the crops and grain
prices toward the end Of the week de-
elined rather briskly.