New-York tribune., 1916-01-07
MARKET NEWS
AND COMMENT
Stocks Give Way-Makc
Little Recovcry-War
Group Weakest.
FINAL PRICES AT
OR NEAR LOWEST
Judge Gary's Warning Serves as
Bear Argument Sterling
Up . Cents in Pound.

Warning by the head Of the steel
Corporation against imitation, over
production and overconhdence had
more effect on securities than did his
testimony to the present prosperity
Of the steel trade, emphasized by the
advance i'm wages of the cOmpdny's
laborcrs, announced before the day was
over The market offered less resist
ance 20 short selling. and absorbed
liquidation rather poorly. Losses OF
from / 20 . points were made by active
luduStrials, with exceptional declines
of s. "a and Is. Railroads generally
gave way only fractionaliy.
Traders were IN a state of mind that
disposed them 10 magnify what seemed
to them beari>h and beyond ,nveStm
buying OF RAILROADS. and il some OF
the more stable IndustrialS there was
'i.t.c purchasing from the outside.
After AN opening that was slightly
changed from Wednesdays close with
some fractional advances, prices were
fairly steady for q while, but before
the morning was over the short inter
est forced declines Of considerable eX-
tent in the vulnerable war group.
There was little important recovery,
and in the middle Of the afternoon the
market was sold again 10 low levels
Of the morning. From then until the
close there was an irregular decline,
and final prices were around the low
est of the day.
United States Steel made consider
able resistance 20 selling pressure;
More than 100000 shares changed
hands. and in the final trading il got
down nearly q point 10 So. closing
shade above its low. Lackawanna
Steel. which had been so strong the
day before. fell back, as no announce
mert came of the expected merger
with Cambria. General Motors fol
lowed overnight news OF dividends al
the rate of 20 per cent with loss OF
80 points Bethlehem steel, on small
transactions, was down over - points.
International Agricultural issues were
exceptionally weak, the preferred max
ing maximum loss of ; points.
OIL stocks, led by Mexican Petrole-
um. and the war group, including Bald
win Locomotive. Crucible steel. Amer
lean Car and Foundry. Studebaker,
Maxwell Motors and other similar ls-
sues. were weak I'm the morning reac-
ito. and closed lower New York Cen
tral, Lehigh Valley. Canadian Pacluc
and New Haven were particularly de
pressed among the railroads.
Iu the bond market prices were far
lv firm and the days total was again
above S5.00O000 Such depressing m
Aucuces as have sent stocks lower are
Of less Importance 20 bond purchasers.
Should the submarine question become
really acute investors might be eN-
pected 20 postpone purchase, but as
vet the country has refused 20 take
this international complication with
the same seriousness with when
Washington regards IT,.
The advance In sterling yesterday
was carried ON al q remarkable rate.
London checks getting up late IN the
day 20 AHA in the pound, rise OF
more than cents from the close OF
the dtv before. When the Anglo
French loan was arranged. il was az
Cued bv authorities iu the exchange
market that the credit thcn created
could. if 10 were SO desired, be used
70 advance sterling 10 $50 IN the
pound The proceeds of the loan,
however. have been drawn upon grad
ually. ....
Now. in addition 20 nearly 100000.
600 placed q. London's disposal through
the sale of the Ang.O-French notes.
there are banking credits and CON
stant stream Of securities coming 10
This side. hastened by the British gov
ernmeuts plan 70 take stock, and bonds
not directly sold. Lack Of SHIPS has
cui down our exports, and for the
present the sterling exchange situation
seems completely under control OF
those who wish il at levels near nor
NAL