The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-08
FINANCIAL NEWS
AND COMMENT
Sinking Of the Lusitania Sends
Stock Market Into a
Panic.
BIG BUYING ON DECLINE

prislng. something usually happens IN
the sequel TO such an excited bullish
a absorption of stocks as went on recently
TO clear away the unsafe superstructure
OF prices that has been 30 enthusiastic
soundness Of tho market position has
been pretty completely restored by such
a wholesale cleaning out OF speculative
following the reduction
which had been going on for several
days.
Whatever occurs in the neld OF interna-
tionai relations tho s'tuati in securi-
ties to-day Offers great investment at
fractions and speculative possibilities
have been vastly enhanced. Conditions
in tho money market and in tho bank
ing community offer tremendous support
to values. quoted and otherwise. and
though forward movements, broken as
the spring rise has been. are not readily
resumed the ultimate outlook for gen.
eral business recovery remains promc-
ing despite the contingencies OF the
world crisis. Apprehension or necessity
may precipitate renewal OF price
weakness in stocks. but advantage will
he taken OF II by those who can COM
mand funds to increase their stake In
tire securities which represent American
enterprise.
The Wall Street storm broke slowly.
but Il swept violently over tho stock
market once Il started. Cnquestlonably
there was witnessed a panic expression
OF the sense OF great danger felt In
the most sensitive OF all institutions.
the Stock Exchange and the activities
which II connotes. TIE sinking OF the
Lusitan!a furnished in the Wall Street
mind an appalling illustration OF what
Germany has intended all along IN the
European war by Its anything 10 win"
policy OF "frightfulness," and the sug-
gestion that the latest product OF Prus-
sian Kultur might strain American
relations with Germany 10 tho break
ing point was enough TO frighten the
recent headstrong speculation out OF It's
wits.
As a result, orders 10 sell stocks at
the market came pouring In and quota
tons were carried down In the last hour
OF the market anywhere from five 10
twenty-nine points from the earlier high
figures OF tho day. The selling move
ment did not really start until about
tho beginning OF tire last hour and in
that period transactions were on the
greatest scale that Wall street has ever
known, being almost a, the rate OF a
three and n half million share session.
A. all times in the hour the record OF
transactions on the tape was ten minutes
or more behind the actual trading on
the floor. That the market stood up so
we'll under the shock was about the
most convincing proof that could be
offered OF the strength which American
financial and business conditions have
developed under the critical tests OF tte
last nine months.
Toward ihe close there were general
rallies which carried the average OF
prices 70 n recovery OF about hall OF the
extreme losses OF the day and the mar
ket gave good many Indications OF
having been pretty well sold out, al
though observers were disposed 10 sus-
pend conclusions until overnight infor-
nation had furnished more facts TO go
upon. Meanwhile every influence which
has been contributing to the hetterment
Of general business and special business
alike and to the enhancement OF values
remains unimptired. They cannot more
than temporarily lose effectiveness, no
matter II the worst forebodinGs of Wall
Street YESTERDAY should he justified, al
though the horror which this war has
inspired anew cannot fan 10 impart
more sobriety to hopeful anticipation
Stock Exchange.
What are called the standard stocks
suffered less extensively in the downfall
than the issues in the Industrial quar-
ter. to which speculative favor has been
running Under the circumstances IL
was nothing less than fortunate that the
share list had had so much of n shaking
down in the previous days OF the week
or the weight OF selling might have had
1fa "A
buying came into the market from in
yestment sources, and there was a
prompt appearance OF unlimited bank
ing support which, with heavy shor,
covering. stemmed the decline before
the close. and the upturn was helped
along by reports that the sinking OF the
Lusi'ania had not resulted in loss OF
life.
This OF course was what Wall Street
was most concerned about, but assur-
ances were lacking before the close OF
the business day that the worst inter
national menace OF the most barbarous
exploit OF German warfare from the
standpoint OF American relations was
not 10 be dreaded. Uncertainty in this
regard was the worst feature of the
news. Undoubtedly the stock market
panic was an unreasoning manifestation
| as usual, but Wall Street very re-
| luctantly took alarm about II at all
1t was nearly three-quarters OF an hour
! after publication OF tho first news that
| the Lusitania was in difficulty before
the reports we're credited and before
their malign import was appreciated
and expressed in The rush OF liquidation
which ensued. II happened also that
on account OF the uneasy sentiment en-
gendered In the last few days by the
Gulflight affair and the situation in
| the Far East the Stock Exchange com
munity was particularly sensitive to so
| disturbing an international portent.
Nothing else than the sinking OF the
Lusltan!a counted In Wall Street notice
during the stock market session. Never
| theless there was material for re-
| cruiting OF fundamental confidence In
the May crop report, This suggested
possible yield Of winter wheat ex-
ceeding last years mammoth outturn OF
| 6S5, 900, 900 bushels. and In all other par
ticulars the return showed that the
| farm season was making most au'
spicious progress.
| live Stock Market,