The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-17
FINANCIAL NEWS
And COMMENT
Further Cnsettlement Of Mar
kct Under Speculative
Pressure.
CANADIAN ISSUES LEAD

Most Of the matters offered overnight
for Wall street consideration yester-
day we're not calculated to make for
stock market Indifference to speculative
pressure. The larger concerns OF poll
tics. domestic and international, which
wero urged on attention were hardly q
positive influence in the stock Exchange
activities. but tended to keep sentiment
cautious. Germany's agreement in the
prospect Of II provoked no enthusiasm.
and as for other matters IN the cate
CORY Of maritime warfare. the financial
community has been disgustei by the
evidence Of fresh waverlng at Washing
ton between contradictory courses. Sters
taken by the British Government Tor
the further mobilization Of economic
forces In the United Kingdom empha-
sized the terrific strain of the war. and
Senator Roots a~rraignment of the VIII
son Administrations record In foreign
policy advertised the serious character
of the national political campaign which
IL impending.
All Of these things made "A Wall Street
setting which could have conduced to
"A more significant weakness than the
stock market displayed. The share list
continued to exhibit an unprotected vul-
nerability to bearlsh attack. but. left
very much to itself by nancia inter-
ests. II nevertheless offered stubborn un
DERIVING resistance TO efforts to break
it. Declines were numerous and opera
tors for the decline enjoyed the assis-
tance of sharp weakness in "a new quar-
ter. namely. in the Canadian stocks sub
ject to the increased eNactiois OF taxa
ton to support the Dominion's war bud
get. Yet professional selling and the
continuation of scattered liquidation
from public traders in commission houses
did not in general produce any very
significant enec, on quoted values, AL
though the market was rather heavy all
day and utterly without vigorous rally
ing power.
Real speculative factors were PROVIDED
primarily by the widespread suppositioi
that the technical position OF stocks
favors bearish cndeavor and then by the
specific NEGATIVE for such enterprise sup
piled by the publication Of Canada' re-
ported taxation programme. The conhs'
| cation Of one-quarter OF the net earnings
Of corporations doing business in the DO.
minion over and above the amount neces-
sary to return : per cent. on paid w
capital would not necessarily he over
b~urdensomc. Moreover. II is hardly u
be supposed that nobody had u knowl-
edge OF such a programme until Its pub
lie PRONUNCIATION.
However. the Canadian stocks broke
severely under heavy sales and helped
somewhat to uns.ttle the rest Of the list
Later in the day the traders who were
working for lower prices made much OF
the burning Of munition ships In Brook
Ign AS an argument for uneasiness and
altogether constructive interests in tn,
market had rather "A difficult time of IL
Rails were poorly supported and coppers
reacted further in more or less depress-
ing fashion from the new maximum OF
advance reached only IA few days g
One of the things which the current
stock market unquestionably denotes is
the conservatism of finance. an interest
ing illustration OF which is afforded by
the declaration OF dividend policy con.
tanned in the annual report Of the
Mackay companies. II is shown that
earnings last year would amply permit
an extra dividend, but the decision has
been reached to limit disbursements &c
the regular payments which have beer
established. pending a more definite de
yelopment of probable conditions during
and after the war. Rapid and abnorma
Increases in earnings have already re
suited ia increased dividend distribution,
/ ilb NsitIN - tNNi w - NNl"'N Nafh
the expansion of value will continue tt
he stimulated in this a but the at
titude of the Mackay companies Is cvi
dencc of a commendable policy which
has come to prevail in corporate anC
financial circles.
A wise conservation OF resources Is he
ing practised which is not incompatible,
with such enlargement OF dividends a.
may seem III and proper. but is expressed
more clearly In "A manifest purpose Il
take advantage Of abnormal earnings I,
augment working capital against tn,
contingencies Of the future. As clrcum
stances develop funds 80 gathered viii
be available for distribution TO stock
holders If warranted and in the mean
time the equities Of shareholders ar
enhanced by the process of accommodating
a protective surplus.
Wall Street seems to be passing
through a stage Of stock market uncer
tainty which is more or less seasonablI
and familiar in February. but genera
business is forging ahead. The week.,
reviews of the iron and steel trade tel
only Of the persistent growth of forward
business and und!minished strength Of
prices.