The sun., 1916-08-19
FINANCIAL NEWS
AND COMMENT
Profit Taking Active Among
Traders Who Got Stocks
at Lower Levels.
NOT ALL ADVANCES LOST
Mercantile Preferred Makes
New High Mark-Pools
Refuse to Pebble.
NOT ALL ADVANCES LOST

was a marked feature In the closing
operations Of Thursday. accompanied
yesterdays dealings In the Stock En-
change. Liquidation Of his sort was
not based upon any change in the
general attitude OF the substantial in.
ultimately better prices were concerned.
the movement representing a strong de-
sire to realize on holdings accumulated
at flower levels. n a disposition on the
part Of many traders to be free Of stocks
pending what they hope will be a salts
factory settlement Of the railroad labor
situation.
II was . fair time to lake pronts.
After days Of advancing values the idea
Of converting paper accounts into cash
ment.
Delay In reaching an agreement on the
Presidents proposition for ending the
controversy between the railroads and
their workers does not necessarily pre-
suppose q strike. Nor does the selling
Of stocks imply the bull movement has
run Its course. II there should be a
countrywide railroad strike the bull
movement doubtless would ne automat-
ically s~idetracked. but according to moi
a few Wall Street observers. 1t would not
be for long. II Is not conceivable that
the great rail transportation industry OF
this country could be tied UP indefinitely
and II Is on the basis Of this conclusion
that bankers continue to advise the in
vestment of funds in sound securities at
a time when practically all basic factors
are In favor OF safety In investment
operations.
The banking community is not shout
ing for a wide open speculation In Stocks,
but II points out that with any further
decline in prices there should I've a
reasonable amount OF profit on opera.
lions conducted upon liberal margins
The current speculative buying OF
stocks Is based upon margins Of tina,
sort.
Many margin accounts were elim-
mated yesterday. hut not wiped u by
declines. as the sales made we're for ac-
cumulated profits and not because ad-
dit!onal margins could not be provided.
In many commission houses II was said
that stocks bought at the hish prices
on Thursday n yesterday morning
were In greater extent han usually re-
ported cash purchases. and that 80 far
~ tIcy Nouiu SStiUtdtS tueTt WIS ItNle
weak stock in the market.
4 part OF the buying on the decline
which followed the early advance re.
fected covering by GENERATORS who put
out shorts the day before on the we'll lie.
hned belief a reaction was overdue. while
there was good absorption at the lower
prices by houses which are identified with
the operations VI important marke: inter
ests. Some of the houses said they de.
tected Qu!e; accumulation BY people wis
had money to spare and who apparently
were willing to risk any slump :ha'
| might come In the event OF a railroad
strike. while they said also that the.
could not reconcile with common sense
the theory entertained in a few Wal
street circles that the country's pres
ent march toward even greater pros
perity than any SO far recorded coulo
lie brought to n long halt because II tx
labor situation. The power of tho Fed
eral Government eScited !, ave of q
maintenance OF traffic Jn our ra.lrpad'
represents the desir Of the people. TIL
| people promise to be D big market factor
, Early advances In stock market values
were not lost In all instances. while
there were many spcc,altles, notably
United Fruit. which sold material,
above their best figures OF the day be
! fore. The pools. particularly in Inter
| national Mercantile Marine issues, do
not appear to be peddling on their stock
while in The case of Tbs Marines, at least
they appeared quite willing to take
stock on the reaction. Marine preferred
sold at a new high record. The market
exhibited a tendency to become dull on
declines.
Money was easy. time funds II any
thing n ;rinc easier than reported
Thursday. with lenders finding II d!H,-
cult to place loans FOR extended periods
Ia nlers naturally were interested in tho
Washington plan for IA Govcrnment bond
issue. but they did not consider 1t OF
enough Importance to cause my change
In the money situation.