The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-03
FINANCIAL NEWS
AND COMMENT
Rcactionary Course Taken by
the stock Market After
Recent Rapid Rise.
FOREIGN FACTORS FELT

Appreciation that the German contro-
stage Of decision and that Mexican mat
tcrs were becoming more ominous en-
tered largely INTO stock market calcula-
tons yesterday. At the same time the
reactionary course OF the dealings could
be accounted for on technical grounds
and explained as the natural consequence
OF so extensive and swift q recovery
as took place in the last week. This
fact served to accentuate whatever ad-
verse reflection the market was disposed
10 make OF the consideration involved
in the posture of foreign affairs. The
trading element was from the outset
Inclined to operate on the selling side,
because OF the structural effect bound
to be produced by the heavy realizing
sales of the last few days and because
"A rapid and extensive advance. involving
a large retirement OF short contracts.
tends to overtax absorptive capacity.
Quoted values we're found to be somewhat
vulnerable to attack In every direction.
There was a sharp reduction in the
volume Of buying orders accompanying
a manifest trend toward a decrease Of
trading activity. and purchases we're only
uncovered at fairly substantial con-
cessions. The distribution Of business
was uneven and here was a material
lessening OF pressure in the late deal
ings.
Owing perhaps TO the weight Of foreign
liquidation in these descriptions recently,
when advantage was taken Of the devel-
opment Of a moderate buying demand,
rails and standard industrials made
about the heaviest close Of the day.
However. while there was some rally
OF stocks furnished the largest net Do.
clines. The demand for war munition
shares was particularly light.
More notice wa taken Of the aspect Of
Mexican difficulties and trouble was
looked for in the sequel to the decision
arrived at by Washington TO keep the
American forces in Mexico for the pres
cnt. The Governments determination in
this respect and the more warlikc utter
ances of President Wilson In his latest
speeches were regarded also as having
some bearing on the position held to-
ward Germany.
Ecriir has been the exclusive source
or optimistic adv'ces concerning the pre-
vcntion ~ a breach OF International re-
lationS ever since the last Washington
note WAS transmitted. Washington de-
spatchcs have been n~on-committal at the
best and the information received by
tho financial community yesterday in
dicatcd a rather non-receptive attitude
AZ Washington toward the forthcoming
German response. or at least an atti-
tude 81 NOT expecting that the reply
would he satisfactory. A. n result
Wall street reached the conclusion near
tho end Of the day that the outcome Of
the German imbroglio was perhaps too
much a matter 81 psychology for even
approximate anticipation. Incidentally
tn" gravity OF tho labor disturbances
around Ifttshurg added to the depress-
ing circumstances of tn. session.
In the foreign exchange market the
feature was the renewed frmness Of
German bills. The cables reported ac-
tive efforts by the French Government
~ mobilize securities OF neutral coun-
tries So that they might be made avail
abb" for deposit as collateral to secure
loans negotiated here for the protection
Of the French exchanges.