The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-09
FINANCIAL REVIEW
OF THE PAST WEEK
Stock Markets SOlidity Ac-
cepted as Best Answer to
It's Critics.
STRONG UNDER ATTACK

The stock market itself during tho
past week las furnished the best pos
sible reply to tho storm OF criticism Of
tho speculation in Industrial shares.
oalled war stocks" There was nc COL
lapse in prices. such as might have
been expected In a purely artificial
kot under the light OF exposure, espe-
cially after tho severe test Of a violent
uprush and equally violent fall in Cruel
bic Steel. The general market merely
quieted down until a top heavy s%pecula-
tive condition in certain quarters had
been lightened. In n surprisingly short
space OF time the upward movement was
resumed until by the middle OF last
week a renewed upward sweep along the
whole line was under way.
Once more the market has shown
an ability to resist unfavorable criticism
and internal convulstous that Is nothing
short of remarkable
Outside OF the wal business ana It's
! direct effects upon trade and business
there are continuing evidences OF grow
/! ing prosperity. Iron and steel statistics
| show a great Improvement. The crops
| are approaching maturity IN a spienuiu
way. with the prospect for the largest
haryests ever known. Railroad earn
ings are increasing and general trade
, returns promise that this Is not merely
a change for the better.
The South Ia still suffering from oe-
| preston for causes which II IL NOT
| necessary 10 outline, but things are ap-
ma rently moving toward a practical So
| tuition of the problem OF taking care OF
the cotton crop. ,
Those who were once more surprised
last week by the absorptive power or the
stock market and its ability to recover
from shock have probably failed 70
understand the real nature or the pres
ent movement in the stock marke,
They have mistaken certain surface
features for characteristics OF the whoie
movement. That is not the case. Pro.
fessional Wall Street is playing us usua'
game. Pools are operating. Pure gam
bling ie going on and In some cases Is
being stimulated instead OF restrained
In short. speculative excuses or a!
kinds are being INDUCED in. IA h j.
ways are in n great period OF spe.uia'
ton. But all this IL the mere frotn OF
the wave OF buying from the country lt'
self. From time to time II Will cause
violent setbacks in prices and grea'
losses will result to spectators VIM
throw aside all caution. But the move
ment has a solid basis for all that
In the stock market the most striking
feature was the development OF grea'
strength in Steel common stock on :
broad buying movement. n price o
Steel stock always bears a close relation
10 the state of the public mind. Their
is no single feature that presents {
better index TO the activities OF IN
publ,c i'm Wall Street than the marke
for the 5000. 900 shares OF the United
states Steel Corporation. The SUSTAINED
rise in Steel. therefore. has tende u
strengthen sentiment materially IN
impetus for this latest buying movemen
In Steel was apparently supplied by sen
s~ational stories from trade centres tel
ing OF higher prices for steel product
and Of a veritable scramble for duicI
deliveries on certain products essentia
10 the manufacture OF war munitions
But 4. is probable that back of surfac
movements the market for Steel Is show
ing the effect upon the public MIND o
the remarkable report OF the corTor 10
) for the last quarter. II the market 10
the general list of stocks Is regarded |
, the light Of the market for Steel stoc
the continued scarcity Of stock In spit
OF the great rise will not be 30 Difficult
to understand.
Another new feature of the marks
last week, which was welcomed as LEND
, ing an appearance OF stability TO IN
. whole price structure, was n tendenc
: on the part of the buying movement Z
lbroaden. There was a notably bette
Inquiry for the standard shares, whic
apparently indicated a freer distribute
lof investment capital. The a
the rails, while not extensive an yet ha
|. been sustained. suggesting n lifting
6 selling pressure from Europe.
AS regards the immediate future {
the stock market Il Is the opinion I
. we'll informed observers that the spec'
! latave position Is not especially tol
|. heavy. Technical conditions may hay
been weakened in some directions as
result Of the excited speculation in Il
. war stocks, but h testimony OF banl
ing interests is hat as a whole the
. il no greatly extended speculative pos
tion. The rise has brought hea,
profit taking. and considering everythtr
Z the commission house holdings are N
nearly as large as might be expecte
THE inference is that back OF the gener
/. speculation In the war stocks there HI
" been a good deal OF excellent buytI
4 by persons who can afford To pay the
!" nrices and NAV q waiting game.