New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-15
Overspeculation in War
Contract Issues Gets
More Correction.
DOMESTIC TRADE
STILL ON UPTURN
Course Of Europe's Affairs Gives
Cause for CautiOn-Funds
Pile Up Here.

sues leCclNeU luTtHer colIeCIlOH ias'
week until, at lowest prices reached
losses from the best of the year ex-
tended TO from 20 to 30 points-in the
case Of Bethlehem Steel, 200 points
This drastic contraction Of paper prof.
It's is not large when the unreasonable
advances, based in many instances
merely on rumor and conjecture. are
considered. IL has, however, served to
bring clearly before a public eager for
speculative gain the unstable nature
Of the securities In which IL was vent
uring. The decline has been the more
impressive because no shock from out
side was needed TO bring reaction.
The market in these war issues had
become overbalanced. An unwieldy
volume Of purchases waiting the right
moYent TO sell, an unusually small
amount Of short commitments 70 be
closed by purchases and a lessening
number Of new buyers formed a con-
dition that of itself brought about col
lapse. Shrewd market operators, rec
ognizing the state Of affairs, sold for
a decline and forced out holdings of
weak purchases.
The more stable portion Of the list
Joined TO some extent in the reaction.
Railroads, while not inflated Ike indus
trial favorites, had been raised TO
prices that threatened liquidation by
investors here as we'll as abroad. With
the best Of the carriers selling 70 yield
little more than bonds after a con-
tinued rise, reaction was due here also
The appreciation in market value OF
the railroads had, however, been con-
servative. The better position Of the
transportation industry was evident
The setback in the rails was not great
and their recovery was prompt If not
long sustained.
Sings of Hesitation.
After the turn Of the market upward
late on Wednesday there appeared
signs Of hesitation for the remaining
days Of the week. II may be that small
er, more orderly trading will for q
while succeed to the violent market
movements of recent weeks. Abroad
the great war gives sign of important
developments impending. Our own at
fairs are most encouraging, but Il may
well be that these domestic sources Of
| strength must for time be allowed t
accumulate before their influence Il
/ felt In the stock market.
] Il. L.. oil
begun a month ago, has fattened out
/ In the Balkans the assault of the cen
trail powers has opened the way to Con
stantinople without meeting much eff
fective resistance. Rumors, uncon
frmed but persistent, suggest tina
these Teutonic successes in the NeaI
East have dangerously stirred the ma
tives IN Egypt and India. On all th'
warning nations the cost Of warfare /
pressing heavily. From German,
come reports that indicate less unques
/ tioning acquiescence in the sacrifices b.
the civil population, necessary II grea
armies are to be equipped from tina
country's own resources. The British
government has asked and received
further credit of f400,0 100000, and tn
critics are asking where this immens
fund is 10 be raised without the viciou
practice of piling credit upon credit
France is preparing q great forma
bond issue. Russia is putting out al
internal loan at over per cent.
These various signs of strain, mill
tary, political and financial, need no
necessarily indicate any important i'm
mediate change in the progress of tn
world war. They do, at least. sugges
reason for caution here, and show VIII
large interests for a while may be dis
posed TO refrain frcSn market opera
tons on the constructive side. Fo
ourselves, the sinking of an Italia
liner In the Mediterranean by an Aus
trian submarine revived danger Of in
ternational complication which ha
been thought removed.