The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-24
FINANCIAL NEWS
AND COMMENT
Recovery After Another Vio-
lent Decline in stock
Market.
PRICES CLOSE HIGHER

Another violent decline in the stool
market in the morning hours APPARENT,
| marked the final stage OF the fall II
prices caused by the sinking of tn
Arabic. At any rate the character o
| the stock market thereafter underwent {
striking change. For the first time
since the setback began the marke'
not only scored II substantial recover,
hut actually closed higher on the day
The upward reaction was undoubtedly
due TO the mechanics OF the market
movements Nevertheless 1t indicated
n temporarily sold out and o~versold
condition. In other words. liquidation
had slacken"d. permitting prices to re-
Spond easily to comparatively small
buying for both accounts.
Whether II Is safe to infer from the
markets action yesterday that the worst
is over. SO far rs the effect of this
particular piece OF news is concerned
thore were plain evidences that a vul.
nerable hui. Interest had been cleaned
out and that very strong buying had
developed AT the low level. The stock
market will undoubtedly continue under
the influence Of developments In the
Arabic affair, and it's future course
will be dependent upon these develop.
ments. but the setback has placed the
market In IA position To resist unfavor-
able news, ever Of sensational char
icter.
Prices opened higher all round. bu,
the strength was not long sustained
There ensued a period OF acute weak.
ness. the most pronounced in fact tina,
has developed since the decline began
last Thursday. Prices fell from , "a
{ points among the active issues. Blu
heavy buying appeared and as the sell.
ing slackened the whole list rallied. The
close was strong, though somewhat IT..
regular under extensive covering from
the shor interest, which was some.
what taken aback by the vitality dis.
played Ivy prices. steel common wa
the pivotal stock. Everything turned
upon its movements.
The specialties. principally the wal
stocks. again suffered. but the rally
here was as impressive ~ that in the
standard shares. The session was
marked by the circulation Of all kinds
of conflicting rumOrs. II was reported
~ various times that Berlin had apollo
gized or would do so, that the Arabic
had been SUM by a mine and tha,
Washington would not hurry it, investi-
alton But IL is doubtful II these re-
ports had any real influence upon tn,
course Of the market. although the y
may have affected the activities OF the
trading element II "a rather notice
able that the trading. except in steel.
where IL was enormous, showed a ten.
dency to fail off. This tended to cor
ioborate impressions that the process o.
rcadjUstment Of tn speculative position
to the state OF political tension had beer
accomplished to a large extent.
4 good deal OF discussion was cause
by The revival OF the probability of a biz
United states Gov rnment loan. II
view OF the extraordinary monetary 20,
sition IN the country it is realized -lhl
such a loan would cause the minimum
OF disturbance to the inyestm mt mar.
kets. Negoti ions over the British
loan and tn. exchange situation a.,
presumably held in abeyanc pending
he arrival Of The special ENJOYS from
london. The outcome OF thu preseu,
political tension between tais countr
and Germany is also something that will
naturally have n bearing upon the prog
ress of these negotiations. The placing
OF cotton on the Contraband list by The
Rr1tt>h cow rnnient had little effect
urur sentiment. either general o. IN the
cotton trade. This was reflected by
some weakness In cotton prices. al.
though other influences obviously play,
their part in the fail.