New-York tribune., 1916-01-17
War Stocks in Less Favor.


A more immediate reason for the
pause in security dealings is the dis
favor into which recent speculative in
dustrials have fallen. Advances of 40
10 100 points have made movements in
more conservative issues seem unsstis-
factory, but after the inflated indus
trials are ilquidated and brought upon
steadIer basis brokers expect an ac-
cess,On of trading 20 the more sub
stantial part Of the list. The wonder
tul expansion of business that has come
20 US, they believe, means so great an
increase of confidence that purchasing
cannot be restrained and will show it.
self in securities that represent the
country's business position.
Last autumn, in discussing the fail
ure al that time TO carry on big rising
markets, an astute operator suggested
that the difficulty lay in an Interrupt
ton in the continuity of bullish senti-
meut Perhaps this holds good now
When practically every one is CON
WINGED that prices will continue to go
higher there is 10 lack of purchasers.
Once the spell is broken it is hard to
start the movement again. Buyers
show more discrimination, and there
are many unwilling ultimate consumers
looking for an opportunity to unload
their holdings. At present, as many
market observers see Il, there is too
much in our national affairs that offers
encouragement to warrant belief that
bullish sentiment viii not be revived.
That the public should be rather shy
OF war stocks is not 10 be wondered at.
Just As had been foretold in the height
Of their ascent,' ,'most of these issues
have not held their gains well. They
have as yet failed TO make good the
confident tips of the summer either in
known earnings or in dividend dis
buTsemeuts. The Allies have achieved
an immense output OF munitions, and
how many orders here will be repeated,
how much allowance will be made our
manufacturers for failure in prompt
delivery or IN exactly meeting specih-
cations is uncertain.
The international list Of stocks,
which is generally selling on what in
normal times would be considered sn
attractive dividend basis. suffers from
the disadvantage OF European liquida-
tiOn. Our securities are understood
20 be coming 20 this side in large vol
ume. as British owners prefer direct
sales 20 the inconvenience and formal
ity of turning over their holdings 10
the government. While prices in such
issues are not depressed, the supply
from abroad is feared as a check Oh
any Immediate important rise.
While securities thus hang uncertain,
business conditions continue to i'm
prove, and before long it may be that
last years rise in securities cannot be
said fully TO have discounted the up
turn. New building has been slow 20
expand, but in December Il remarkable
gain was reported from every section
of the country. No longer is it simply
the requirements Of munition makers
that are causing the new construction.
Steel Orders Pile Up.
The steel industry continues TO stand
out as an unusually bright spot in our
cOuntry's business. With high prices
and, it is understood, a good many or
ders refused because of inability TO
supply products when wanted. the Steel
Corporation added more than 100000
tons TO untitled orders on its books in
December. Nearly 100000 tons were
gained in orders in the last quarter of
1915, in spite Of the high rate Of pro-
duction. A total OF more than $780, /
600 tons of untitled bookings at the end
Of the wear is more than twice that re-
ported twelve months before. and one
Of the largest In the history Of the
corporation.
In the mean time the shortage OF
steel for domestic consumers is great
v impeding some manufacturers. A
little slackening in demand for steel
ascribed TO the realization that or |
lers cannot be filed as desired, rather |
han TO any decrease in requirements
With foreign orders coming as ex-
oected, further advances in price are /
,redictfd. The payment OF high wages /
,y the ts,.eel Corporation has been fol- |