New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-20
REVIEW OF THE
FINANCIAL WEEK
Tension with Austria Over
Ancona Attack Makes
Traders Cautious.
ANGLO-FRENCH NOTES
IN ACTIVE DEMAND
No Increase in Public Interest in
Stocks-German Exchange
LoWer-Sterling Firm.


The security market last week
showed more clearly the sensitiveness
to international affairs that has been
one explanation of the vacillating state
into which 1t had fallen. The poor sue
cess Of the Allied arms has limited OPP
erations by large interests. Our diplo-
matte crisis with Austria brought doubt
to the rank and file and discouraged a
start toward new speculative ventures.
There was no widespread apprehension
and little liquidation by customers Of
the commission houses, but the market
was plainly nervous and unsettled.
After the long drawn out anxiety
over Germany's submarine blockade Of
the British Isles, 1t seemed incredible
that the attack on the Ancona could
bring about rupture of diplomatic re-
lations with Germany's allies. Still. the
text Of our note to Vienna had more
vigorous tone than those that had been
sent to Berlin, and Washington dis
patches told Of determination TO con-
sent to little delay and to accept no
compromise. Caution seemed advisable
in such a critical state Of our interna-
tional relations.
Though outside holders were not dis,
posed to get rid of stocks, the public
kept away from the market The in
crease Of general interest and conse-
quent rise in stocks predicted for the
middle of the month in anticipation OF
Januarys reinvestment of dividends
and interest failed TO appear. Markets
continued small and dealings were con-
centrated i'm a few issues in which spe-
cial influences were at work. The oil
shares advanced for a while and some
industrials were in favor.
Impatient spectators began to make
attempts here and there to start ad-
vances among the industrials, in hope
that, as before, the public's apathy
might be overcome and business en-
larged At times these scattered move
ments made some Roadway, but they
did little toward putting up the gen
eral list. Late on Thursday, when news
from Washington of our dispute with
Austria was most disquieting, those
issues that had been most in favor suf-
fered considerable setback.
Standard Issues Sluggish.
Standard stocks were sluggish, with
more selling for foreign account and
indefinite fear that the British gov
ernment's mobilization of our securi-
ties might send them back too fast.
Expiration of the Anglo-French loan
syndicate caused some uneasiness. The
result of the public offering had been
ket in the notes brought little further
decline and a considerable accession of
purchasing. The issue changed hands
as low as 941s, against price of SO
to the general public and of 90 and
expenses TO underwriters. From this
low level there was an advance 70 95.
Obtaining subscriptions to a $780,
100000 issue of foreign obligations in
forming the underwriting syndicate
was d notable achievement in our finan-
cial development. Withdrawal of
around S3S0,000,OO0 by these under
showed appreciation of the unusual OPP
portunity brought TO us by war. Sale
of only some S40,000,000 in two months
after that is an indication that as a
world financial centre we have not yet
through no lack of funds for invest
ment, since in the same period the
Baltimore e. Ohio quickly obtained sub
scriptions from the public for double
its S60,000,000 of per cent bonds Of
fered at par.
A year ago we were told by repre-
sentative of the British Treasury that
to meet the international balance be-
tween this country and its customers
abroad we would have to take either
their securities or our own. As it ap-
pears that we are not ready to pur-
chase any great amount of obligations
Of the belligerents for a while at least,
the British government Is preparing
to insure sufficient supply of our own
TO meet, with such gold as can be
spared, purchases of supplies here.
1t was announced in Parliament that
In selling such American securities as
were obtained from private owners
care would be taken TO avoid swamp
| ing our market. Some of the stocks
and bonds taken over are TO be used
as collateral for loans, and il is only
the part OF wisdom TO avoid depress-
I ing prices TO protect their collateral
position. As in the case Of previous
shipments of our securities, IL Is ex-
peCLeQ tnaL lneN VIII De marketed with
discretion, as our investors are able TO
absorb what is offered. Since the out
I break of war we have been expecting
return Of our obligations placed
abroad Fear that they would come in
an overwhelming torrent kept our
Stock Exchange closed and imposed
minimum prices at reopening. We
have already taken back millions with
out disturbance, and with reasonable
good fortune should be able TO purchase
what is offered with comparative ease.
We are buying back for the most part
at low prices what we sold at high.
Marks at Heavy Discount.
The German Secretary of the Treas
ury paid glowing tribute last week 10
the strength Of his country's finances.
Here, 80 far as exchange rates In a
neutral market can be taken as meas
ure of financial strength, different
opinion prevailed. The price of marks
fell 70 new low records, Berlin checks
selling at 1874, against metallic
parity of about 95l3 for four marks.
This discount Of around 20 per cent
was only TO be expected, since Germany
no longer redeem's her paper currency
in gold. Austrian exchange was even
more unfavorable; kronen checks at
1888 cents, as against 20.3O, were at a
discount Of more than 81 per cent.
The temptation TO carry on war
through aid of the printing press has
always been great. To the Central