The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-01
FINANCIAL NEWS
\ AND COMMENT
Stock Market Heavy. With
War MunitiOn Shares Lead
ing Reaction.
PRESSURE rs MODERATE

somewhat nervous and moderately
heavy stock market yesterday rounded
out an active week In which on the
whole somewhat excited strength pre-
dominated. War stocks which had fig-
ured most conspicuously in the July rise
were leaders In the days declining price
movement. There was no real weakness
and tho course Of quoted values seemed
90 be In the main the result OF continued
proht taking and "a miscellaneous llQui-
dalton of long accounts by traders who
were unwilling to take chances with the
uncertainties OF occurrences during the
week end recess. The close was steady.
with some indications from hardness in
duced by short covering that bearleh OPP
erations had helped the reaction along.
Quiet pressure was manifest from the
opening TO the late dealings. Prices
yielded slowly and In orderly fashion
and there was some early strength in
various descriptions not confined to war
munition shares. hut the strength was
not maintained. The movement down.
ward seemed TO he chiefly n continue
ton of the r~cactlonary trend which set
~ "AN'' wv liit'A y puN loAlNtlk tEloie
was indicated han vas called for In the
way OF processes corrective Of the mar
kct pos~ltionscreatcd by the extent and
feverishness OF the July advance. which
was 50 accelerated and exaggerated In
the past week.
Some disposition was manifested in
speculative quarters to attribute n de-
pressing influence to the news from
warsaw and its completion OF the record
Nph 40 400 81 49,. IL T.
the first year Of the war. II Is doubt ful.
however. II Wall Street was concerned
about anything in the Eastern front OF
war except the question OF Russia's
ability to draw on It's armies and NUM-
tions without severe loss. The torpedo
ing of the British steamship lbcrian
added n little to speculative apprehen-
sion respecting happenings in the inter-
national situation. hut what the stock
market seemed most to express was n
feeling that IT was nttlcd to a setback.
especially in those issues which had APP
preciated materially In value and had
discounted a good deal of the nelr
future.
During the week which ended yester-
day Wall Street features emphasized the
contrast between financial and commer-
cial conditions now and n year ago.
New high price levels were attained
by many war munition shares, and while
the upswing was characterized by a dis
play Of excessive gambling fervor, the
difference between the July stock market
and the market in the corresponding
month last year Is significant OF a great
change In our economic outlook. Also
II was reassuring thai in last weeks
market speculative excess was obviously
checked by consideration of the adverse
possibilities or the international political
crisis with which the country has been
confronted since the late spring.
Much OF the weeks news added to
current arguments for "A constructive at
Utude. This was particularly true of the
United States Steel Corporations state-
ment for the June quarter showing net
earnings OF almost s2S.0o0. 900. COM
pared with about tl2,5O0.000 in the
March quarter. The pace OF improve
ment In basic Industry was further
evinced ny the increase OF more than
$4,000 900 In the June earnings over the
earnings Of April. The situation in the
steel industry IL evidence of the stronger
supports which are being placed under
the Wall street structure OF quoted val
ues and Is a token OF the factors which
are operating for the beitcrmcn, OF
business generally. Fairly circumstan-
t'al reports In the last few days go TO
show also that there is a persistent ne
collation. OF contracts for war supplies.
Crop advices Indicated no impairment
Of the brilliant agricultural promise. on
the contrary. the weather has been more
favorable of late. Encouraging lnfor-
nation was contained in the statements
OF railroad earning for June. \. very
striking exhibit was made Yesterday by
the New York Central system. While
gross earnings for all lines Increased
$1.43O.OOo. net earnings increased ST.
$4,000. The net increase for the New
York Central alone was almost $780,
600. II for six months tho galn in net
was S6,G33, 900. Sentiment about rail-
road conditions has grown more hopeful
OF late because OF bstte-nent of earn
ings and because of tho persuasion
that the Interstate Commerce Commits
sion Will. IN the Western rate case. DEM
onSrat that q constructive policy OF
regulation has been definitely established.
Our foreign trade balance seems To
DC again on Il rising scale. At the same
time arrangements have vet TO he made
FOR making those adjustments IN the in
ternatiOnal money market which are alb
solutely essential II the opportunities for
Soreign trade are TO be realized in any
sustained manner.