New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-01
MARKET NEWS
AND COMMENT
Securities ReaCtiOnary in
Unsettled Market-RailS
Fairly Firm.
DEMAND STERLING
BREAKS FIVE CENTS
Foreign Exchange in Disorder
as London Checks 90 to New
Low Of 455I2 in Pound,

After an irregular opening, seelri-
ties fell back under continued heavy
profit taking and more o. less short
selling There was again enough out
side purchasing 20 prevent declines
from reaching any large extent and
toward the end of the day repurchases
b. those who had sold snort brought
moderate recovery. Final prices among
stocks most dealt 10 were Irregular
with declines of n fraction 90 q point
or more common. The approach 20 col.
lapse OF the foreign exchange market
which sent sterling 20 Assn Tor checks
added 20 the u1settlemcnt among Sc
curities.
Around the opening railroads showed
a tendency 90 advance, and New Haven,
in anticipation hat the coming report
would show traffic effects Of New Eng
lands business IN munitions Of war,
was point higher a the close. Chesa-
peake & Ohio improved in the after
noon. Rock Island resumed its up
ward movement on dealings that ap-
preached 10000 shares. Optimistic ut
terances from the same source that
played 50 large a part in the unfor-
tunate rise before the road was put
into receivership again encouraged an
advance
War stocks, which have moved in
saner fashion since the latter part OF
last week, were not particularly con-
spicuous. Baldwin Locomotive, as on
the day before, was exceptionally firm,
new war contract being talked Of.
Westinghouse. Allis Chalmers, Lacka-
wanna and Crucible Steel ended the
day with losses Of from a considerable
fraction to a point. The coppers lost
more Of their improvement Of the week
before. United States Steel had to
take q good deal OF selling, and at no
time changed hands above Mondays
closing price of 1874. II was depressed
more than a point and ended at 10.
With uncertainty as TO the price that
London buyers would have to pay for
purchases here and as to the premium
which their sales for remittance across
the water would bring. an indefinite
cause of depression was added 10 the
natural reactionary tendency of the
market after last weeks excited up
turn. The great depreciation Of ster-
ling exchange might. 1t was feared,
lessen British buying goods IN tins
country. Situated as Great Britain Is,
most of her supplies must come from
abroad in ordinary times and the war
has created in addition most pressing
needs. We furnish the only great ner-
trail market and alone have the power
TO grant CT it in large amounts. SO
even should resent or lower rates for
sterling exchange be continued, It IS
a question how much our exports TO
Great Britain and her allies would suf-
fer,
While sales for forward delivery are
fairly common In our bond market,
there has been no such depression Of
the international list of stocks as
might be expected TO follow any i'm
po~tant increase Of European hquida-
ton. Il is true that the low sterling
rates mean q large premium for Eng
Nsb holders who sell securities in
this market and have the proceeds re
mitted back TO London. SO far Il ap-
pears that great proportion Of these
foreign holders prefer our stocks and
bonds to funds In London.
Sales Of exchange we're in large vol
ume yesterday, with buyers even fewer
than on the day before. An overnight
drop in sterling checks Of 11e cents
in the pound was followed by further
breaks, with slight recovery until
price Of ASH was reached, never
before seen in normal money markets
here. Final figures were the lowest Of
the day.
In spite Of the unrestrained decline,
il should be remembered that sterling
rates have broken badly before and
that strong interests fully CONVEX
SAINT with the state Of our trade rela-
tions with London stepped in at the
proper time and resumed control Of the
market just when It seemed that there
was no bottom. The coming confer
ence TO arrange for methods that Will
enable Great Britain and her allies to
continue their purchases here Is greatly
needed. It may be assumed however,
that the plan, when perfected, will be
q comprehensive one and that Great
Britain's immense resources will be
applied so as 20 maintain sterling eN-
change on as favorable a basis as pos
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