The sun., 1916-10-10
FINANCIAL NEWS
AND COMMENT
Submarine Activity Causes
Some Fright Early, Prices
Shooting Down.
MUCH OF LOSS RECLAIMED
War Brides Suffer on Break
Bankers Appear Undis-
turbed Over Outlook.

0 Heavy liquidation IN stocks for public
account and selling pressure from the
professional element were effective in
carrying prices TO semi-panicky declines
in yesterdays early dealings. buying on
the break being chiefly for the account Of
Street interests, who. unlike the outsid-
ers. were not alarmed over the latest de-.
velopment In the submarine situation.
In the first half hour the low figures
for The day were recorded, maximum
losses running from Z. TO ~ points, with
even greater marke, depreciation in ex-
ceptional cases. as, for instance, in Re-
public Iron and Steel. In the rest OF the
session the general list was irm on the
basis Of a substantial recovery In the
forenoon operations. At that. net losses
were heavy. especially In the steel and
copper shares. the war issues in general
and the International Mercantile Ma
rincs. the last named naturally being ac-
shipping being tied up because Of the
work OF the German undersea boats.
sentiment In Street circles was very
much mixed regarding the course of
prices In the immediate future. Bank
ers, however, did not appear to be dis
turbed over the slump or over the out
look. and the fact that sterling ex-
change failed TO give any reflection Of
the idea held in q few quarters that
our great export rad would suffer
seriously from the submarine attacks
on oversee was accepted as
one of the best indications that the sit
uation was not considered so serious
as tina course Of prices in the Stock
Exchange would suggest. And no great
significance was attached to a late ad
vance In call money rates, the rise ap.
parently being due to a withdrawal from
the market OF some lending institutions
| chiefly out OF town banks. pending q
| clearer view OF the situation.
1t was the first big decline no mar
ket had experienced In months. and 4
was the first time In weeks that pro
f~essional Wall Street had been able 4
make big profits. And 1t made then
rapidly at the expense OF the financial,
weak public. which rushed into "A pan
icky fear, selling It's stock regardless
either OF intrinsic or market values.
The public wanted to get out. no mat
tt WV N''hs ~ ShAAh otuCAS I'll u
tremendous volume in the first tw
hours OF trading. when the total bushes
amounted to mo- Q than 1000. 600 share,
with the heaviest liquidation in Unite
states steel. the Mercantile Marine.
Crucible Steel and Anaconda Copper.
In view Of the extent Of the recer
advance in stock market prices. n l
view Of the serious Interpretation place
by the public upon the submarine attac
upon vessels near American shores. III
decline was not considered particular
large. while in the best informed W.
Street houses II was not admitted this
the downward movement precluded III
possibility of a resumption of bulls
activity. II was thought, however. this
even the rich public would not return I
the market at once. and that the sui
stantial financial interests might not I
disposed to encourage further active bu
speculation at this particular line
Bankers. however, pointed out thu
fundamental conditions had not bee
changed. that in their opinion there wa
nothing in the latest phase OF the sui
marine situation that warranted III
idea of a coming change in basic fa'
tors. and tina they could not see ar
reason for the sale Of investment secur
ties.
Bonds did not share to any extent
the weakness in stocks. fractional col
cessions In some instances being r.
ported.