The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-07
FINANCIAL NEWS
AND COMMENT
Slight Rally in the stock Mar
kct. With Some Strong
Specialties.
ASPECTS or THE LIST

A Grmcr tone was shown in yester-
days stock market Trading wa. in
moderate volume only. the dealings in
bonds being relatively more brisk. but
the net result uf the stock market ses-
sion was fractional average Of upturn.
A few new minimum prices we're an
nounced after the close, affecting none
Of the leaders. but carrying along the
indications Of n selling disposition which
sne persistent necessity Of lowering
minimum prices affords
In the main tho trading in stocks
continued the prevailing feature OF the
week There was determined bidding
UP OF specialties, consplcuously Be,hle-
hem Steel and Studebaker, while tho
langliid rally OF standard shares sus-
eested once moro that the market for
them was under pressure. actual or po-
tential. II could not be said that there
was any real reflection OF the unsettllng
possibilities contained in tho extraor-
binary Developments OF the war abroad
which require cautious handling at
Washington to keep the country from
being drawn into grave international
controversy. At tho same time the
fervcnt character OF the days grain
market was noted by Wall Street, and
uhe financial community. while not Dor
rowing trouble on foreign account is not
inclined to regard the war factor in its
new aspects with reckless Indifference.
Except As standard stocks responded
20 short covering. as in American Sugar
Refining and southern Pacific. they did
not show much strength. Saturday is
usually free from foreign business here
and the list did not have to contend
with any noticeable offering OF securi-
ties from abroad. although II is being
currently reported that Stock Exchange
houses see daily evidence of an increas-
ing supply of our stocks and bonds
which have been long held In Europe.
The fact that the share list on Friday
reached new low average level for tho
rcactionary movement that has sue
cceded the January rise, the further
decline being slightly under the previous
low of Friday week ago, rather iudi-
Gated that the retirement OF bearish COM
tracts was chiefly responsible for yes
terday's iirmer tone.
weakness in Norfolk and Western
led to lively conjecture that the Penn
sylvania Railroad has been selling
some Of It's treasury holdings of stocks.
the same Inference having been drawn
from the fall OF Southern Pacific in the
past few days. There was no fresh in
formation OF an authoritative character
respecting tho various corporations
whose earnings have been talked Of in
the last few days as denoting pOssl bl"
dividend reductions in the near future.
but this is one OF the matters which
Wall Street is now keeping in mind a.
O reason for the practice OF prudence in
constructive commitments.
SO far as concerns the stubborn ais
play of strength in specialties, this is
not without merit In the first place
they are not subject to foreign liquIda-
ton and share only indirectly in the
unsettlement which may result in other
quarters of the list from this cause.
Again, they represent the special bust
ness which the war has brought to many
corporations and firms. with the con-
sequence Of a substantial expansion in
earnings. However. ths contrast In
the past week between the heaViness
of dividend paying stocks and the firm
ness OF non-diyidend payers does not
appeal to a good many careful observers
OF the market
Speculation in speCialties could very
well he Overdone unless supported by
greater strength in standard issues than
they have been displaying. Important
interests and large investors are well
disposed to make courageous purchases
OF good stocks IN periods OF weakness,
but to "A large extent it is true that
their willingness to buy Is manifested
only when such weakness appears. This
is not solely or chiefly because these
buyers want greater bargains or expect
to get them. but because their aCcumu-
lation is guided by a very wholesome
consideration FOR the distributing con-
tingencies, domestic and foreign, which
low prices have to discount
In tho bank statement there were moro
signs Of the financial activities denoted
by new security promotions. lonus in
creased about $50. 800 ,OOO with a cor
responding gain in deposits. There was
only trflinE contraction in reserves.
On all accounts the best feature Of the
past week has heen precisely the en-
couragement which has been lent 10
negotiations between borrowers and lend
crs for financing the imperative re-
uuirements of corporations and munich
palities and the highly successful Penn
sylvanla Railroad bond issue has been
followed by number of small offerings
while numerous undertakings are being
arranged 1t is worth remarking also
that tho country's ability to finance It's
needs Is accompanied by ability TO eX-
tend credit abroad, for more Canadian
loans have been placed here.
Apart from such adverse matters as
have been noted the worst features Of
the last week have been those contained
In the war news, In the unchanged anti,
business attitude of Washington politics
and I'm the tokens that general business
depression has not as yet approached
tts termination.