The sun., 1916-08-26
FINANCIAL NEWS
AND COMMENT
Market Turns Heavy on Profit
Taking and Rail Labor Re-
ports From Capital.
L. s. STEEL CLOSES AT 81
Heavier Buying Of General In
vestment Securities Ex-
pected by Brokers.
l.. s. STEEL CLOSES AT 81

Professional traders exerted pressure
against stock market prices in the
greater part Of yesterdays session with
out accomplishing results In proportion
to the energy expended on their opera
lions. Their most effective work was
done in the last hour Of the session.
when the general list was pushed we'll
under the high levels reached in the early
dealings and the prominent shares gen.
orally under the closing Of the preceding
day. Absence Of active public buying
and an apparent disposition on the part
of substantial Wall Street interests to
leave the market for the time being to
Its own devices. pending further Develop
ments in the railroad labor controversy.
were the handspring Of bearish moves,
to find in the strength in the wheat and
cotton markets excellent argument for
lower prices.
Big" men were not active on the bull
side Of speculation. but the general move
ment OF the market reflected an UNDER
lying support In .ts capacity for the alb
sorption Of offerings. And In view Of
recent advances and the somewhat more
pessimistic view of the situation In
Washington In respect of the railroad
dispute prices were relatively strong.
Most Of the stock sold by commission
houses represented proft taking. while
much Of the selling In the last Jour rep
resented an extension OF the short inter-
est. chiefly In the railroad shares. some
N the war stocks Inc United States
steel. Pressure against Steel. In which
a large new short interest has been
formed. was heavy. but Its net loss
nevertheless was less than one-half
point. Viewed from all angles the ac-
ton of the market should encourage the
idea that. barring the development Of
most depressing factors, prices for the
greater number OF issues will not change
their general tendency from the direction
OF higher levels.
Investment money moved In greater
volume into high grade securities. with
"A good demand for municipal bonds and
attractive public utility issues. The sue
cess of the public subscription to the
$3.50, 600 600 secured British loan en-
couragcd Investment houses In the belief
Of heavier buying OF general investment
offerings. while II encouraged also the
. thhN ~ iOdu WuS uOt tUe
last word in big financing for foreign
Governments.
There is so much o In this coun-
try and there are SO many prime invest
ment securities available for market pur-
poses that II IL not conceivable that
funds will remain inactive or that their
great volume will not be reflected in fur
tner expansion in speculative activity In
the stock Exchange. particularly as this
big amount OF money represents the re-
suits Of heavy and successful business
and financial operations.
In some quarters OF the Street the
idea was put forth that with the closing
or the british loan subscription the big
financial interests would withdraw their
support from the stock market. The sue
cess OF the loan presented to many
minds. however. a most excellent reason
why the financial powers would continue
To favor conservative bullish operations
in securities In general. The so-called
big men have many investment Issues
for which they desire a good market.
\ big stock market generally brings
in investment money and an opportunity
Ia make a big stock market therefore /.
not likely to he neglected. The imme-
date course Of prices. however. rs
dependent upon railway labor dcyeIop-
ments.
Professional traders said they were
nervous over the outlook, meaning the
railway labor situation. In banking par.
Tors confidence in the belief that the
country's business would not he upsc,
by this labor dispute again was pro.
~nounced despite the rather bearish re.
ports from Wi shington.