The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-05
FINANCIAL NEWS
AND COMMENT
Pressure on Stocks Decreases
and Prices Show More
Stability.
TRADING rs LESS ACTIVE

All the indications Of the Wall Street
session yesterday went to confirm the
impression that the fresh cause Of Of
fence given to this country by Ger
many in the torpedoing Of the ollship |
Outright was the accidental and not
the real reason for the abrupt fall OF
prices throughout the share list In Mon
days active trading. There was no
overnight change In the status OF in
ternational affairs, and II tho Gulfllght
episode had furnished an occasion for
acute financial alarm It Is a reasonable
inference that Mondays decline in stocks
would have developed into more pro-
nounced weakness.
There is no question Of course that
the Outright incident IL . disturbing
reminder Of the hazards which finance
and business have 10 insure against.
Moreover, no disposition was manifest
yesterday to draw any overoptmistic
conclusions as to It's outcome. Any
thing OF the sort contains a menace.
Although confidence Is felt that WASH
ington will exhaust all the peaceful
processes in any juncture much In this
case depends on Germany's intentions
and attitude. and IT is always possible
for one nation 10 force another into
trouble II that IL wanted. Naturally
enough reasoning Of this sort does not
tend TO promote venturesomc dispos-
tons in the stock market, and the latest
exploit OF piratical warfare charged up
I 90 the German navy did not make for
activities on the constructive side OF
quoted values.
At the same time the aspects OF the
stock market suggested that decline
came about chiefly as a result OF the
necessity OF correcting topheavy price
structure raised by an overextended
speculative long account and that the
most recent tug at the strained rela-
tons between this country and Ger
many served to provide the impulse for
an overdue reaction in stocks. Whether
or not reaction had gone far enough to
/ rcadiust the position OF the share list
could only be conJectured. but the fea-
ture Of the days dealings was the fall
IRE OF selling pressure TO continue.
Prices NJ times were heavy. but weak
ness was confined to special descriptions.
/ and although the market had a nervous
tone and prices followed an irregular
course the contraction in the volume OF
dealings and the relatively greater
. stability OF stocks generally were rather
favorable signs.
In the main tho market acted very
much according to precedent for a
sequel to such a severe unsettIement as
Il experienced on Monday and observers
were more or less inclined TO look for
irregular sessions for a while until Wall
Street had taken its bearings anew. At
any rate business yesterday was pre-
! vailingly OF two sided trading char.
acter, with an Enthusiastically smaller
public participation and a larger pro-
portion Of professional operations.
Tho standard leaders OF the list
| showed underlying frmness and huctu-
ated within n relatively narrow range.
| Some special strength WAS shown in
| a number Of issues. The principal weak
ness was exhibited by some OF the So
| called war stocks" but even in this
| group the price movement was not of
uniform trend A fair degree of Arm
ness Was displayed In tho main till
late in the day. when stocks sold of all
| around and closed nj substantial recess
sions from the best figures, hut with
tional net recovery.
Apart from the matters Of interna-
tional politics tho budget OF marketwise
news was OF favorable tenor. Some
nrmness was displayed in sterling ex-
change, presumably In consequence OF
tho recent further liquidation OF Ameri-
can securities but the strength was not
great enough TO measure any inordinato
amount OF such sales. Gold to the
extent OF $4,000 was received from
Ottawa and the first instalment Of gold
recently reported as having been sent
from France arrived safely. the amour.
being $1,000, 900.
il is rot apparent that tho unusual
process % importing gold from Paris
Is anything moro than an cxchang,
operation, and II may portend n policy
on the part Of the Bank of France
Ike that which the Bank OF England
OF It will be to add largely to the ex
traordinary strength OF our own flnan
cial condition. In connection with thu
foreign exchange situation incidental
mention might he made OF the Washing
ton estimate that last weeks trad,
. balance was materially IN excess o
$4,000 900. the largest weekly total IL
more than a month.
Announcement that negotiations hat
been closed with bankers for an issu
of sGj.00o,O0o OF general mortgage A.
per cent bonds OF the Pennsylvanl;
= Railroad at a very fair market pric
. was Il further token OF the cons tructiv
way IN which financial and corporat
= | circles are now viewing the prospect
Last weeks events Included several mat
= ters which were of similar import, ant
ono OF tho Developments Of yesterda
; was IN Tho same line. This was tn
= action OF the directors OF the Studc
baker Corporation in placing the com
- mon stock Of the company on "A . pc
. cent dividend hisls An inauguratio
y of dividends on these shares had bee
expected by Wall street for some tim
past, AMI according TO moro or les
: classic example The stock sold down o
- I. L. L L,.n