New-York tribune., 1916-01-27
Public Fails to Respond
to SteeI'S Earnings
and Dividend.
BRIEF EARLY RISE;
REACTION FOLLOWS
International Stocks Pressed
for Sale - Closing Prices
Around Lowest of Day.

So far as appeared from yesterdays
market the Steel Corporations resump-
tion of dividends and immense earnings
have failed to bring the hoped for ex-
pansion Of public purchasing Of securi-
ties. For a little while around the open
ing Steel was vigorously bought, some
shares changing hands at Sc, ~ points
above Tuesdays close. Railroads rose
from a good fraction 10 a point or so,
and speculative industrials showed
overnight gains of larger extent. ms
early strength, however, was due 10
covering of short commitments, new
purchasing playing little part in the
upturn. After that stocks were sup
piled freely and the market quickly
turned downward. At the end of the
dav Steel AT S3i2 had lost point, the
international list was decidedly weak
and closing prices were about the low
est.
Stock Of the United States Steel Cor
poration is so widely held, public in
terest in its affairs is so great. that,
following the doubt that had surround
cd TUESDAYS decision on dividends,
the favorable action was looked upon
as Offering an unusual opportunity 10
test public sentiment. Failure Of the
market 10 carry on yesterdays early
rise led traders 10 sell generally. Deal
ings in Steel were heavy, amounting 10
around 10000 shares. and the days
total, approaching three-quarters OF
million. was well above recent levels.
Weakness i'm the railroad list was
particularly discouraging 10 traders.
On the mornings rise liquidation was
heavy and 10 was feared that with the
public's capacity for absorbing offer
ings of standard issues limited, selling
for London account must be reckoned
with as serious menace 20 any up
ward movement Talk of the desirable
ity Of placing stocks received from the
other side i'm q collateral loan for the
British government so as 10 protect
prices indicated the change that has
come over the temoer of the market.
In responsible quarters, however, II was
said that no such plan was at present
being seriously discussed.
The strength of local financial insti-
tutions receives repeated testimony IN
each weekly statement Of surplus.
Nevertheless. il is becoming felt that
too large proportion of the buying
or stocks has been Tor speculative mar
gin accounts. and too little by investors
who take their purchases from the
market. So Yesterdays failure of pub
lie purchasing TO respond 10 the good
news from the Steel Corporation
was particularly disappointing, in
view of the accumulation of our seouri-
ties in England, described from a Brit
ish point Of view as proceeding salts
factorly
Discussion OF the impending demands
Of railroad employees has helped to
weaken the position Of transportation
issues. though the market yesterday
was not particularly interested in labor
difficulties. Vote Of United Mine Work
ers against suspension of labor, while
negotiations for new contracts were
being carried on, received little or no
attention.
Sterling exchange was steady. with
no particular increase in purchasing
that could be ascribed TO remittance
against sales of securities. Rates on
the Netherlands were a little lower in
recognition Of the plan to earmark
here for that country gold which the
British blockade prevents US from ex-
porting to correct the rise in exchange.