The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-06
FINANCIAL NEWS
AND COMMENT
stock Market Makes a Strik-
ing Reflection Of Its
Strong Position.
RALLIES ON GERMAN NOTE

In the remarkable display Of strength
which stocks made in Wall Street yester-
day two things we're reflected. In all
probability the most influential factors
In the course OF prices were the oversold
condition OF the share list and the posi-
ton Of structural %soundnesS in which
the market had been placed by many
months of reactionary dealings. In
other respects the stock market devel-
opment indicated a rather rapid and
possibly superficial spread of opinion
that iermany's reply to the Sussex note
would tend to avert an immediate breach
Of diplomatic relations. differences to
this effect, operating on the sold out
and oversold condition of a market In
which the intrinsic values of stocks are
stoutly supported by an extraordinary
accumulation of corporate equities. which
are in turn reinforced by the country's
great expansion of financial resources In
the last year and IL half. provided n
factor calculated to promote hasty buy
ing for both accounts. Under the circum-
stances whatever become of the Ger
mar controversy the aspects of the Stock
Exchange session suggest a general BUSH
ness situation fully adequate TO with
N'ii W. Nv VI Eitoti W VIM ~
may be subjected.
The volume Of dealings was on a
rising scale OF activity corresponding
with the advance of prices. The most
striking feature Of the day was the per-
sistent progress which quoted values
made in recovery from "a very weak
opening and the close was strong at the
best figures. The final result was an
array of gains of more than fractional
g... -,.. t,.-I 49,. l... .rl
these gains represented rallies ranging
all the way from 2 to 10 points from the
low levels reached in the early break.
When the market opened the note from
Germany was being published In in
stalments and first impressions derived
from 1t were of "A most pcssimi>tic
sort. In the initial dealings there
seemed to be nothing but sellers. but AS il
turned oit the low prices were practi-
cally all made in the first quarter of an
hour. Heavy buying orders. not only
to cover short contracts but in expires
sion Of confidence in the constructive
side OF the market. rapidly came In and
prices rallied abruptly. \ fererish but
rather inactive interval followed while
more fragments of the German note re-
ceived consideration. hut despite the
forenoon output OF depressing prediction
which Washington supplied through vari-
plip - ~ l'lt'i - - WV
manifest around mid-sessiou that stocks
were in persistent demand.
Thereafter the market made steady
Roadway in its upward course and gave
rather convincing proof Of bow much
, discounting Of uufavorable contingencies
had been done by the extensive decline
a fortnight or more ago. with a second
AIRY reaction this week. both IN 'hs
sequel to the l~iduidating movement which
l,.V Eaa,. tral.r ta..t rN.r since tho eli
max of excited speculative boom wac at
tanned late last autumn. shore covering
J contributed largely to the days demand
for stocks, but there was extensive re
purchasing for accounts previously lIqui'
dated. United Fruit was again an out.
standing feature Of the trading an,
more circums'an,ial reports were cur
rent regarding accumulation of TIM
stock in connection with a programme
of expansion IN the ocean carrying trade
backed by important financial interests
With respect 10 the bearing of the Ger
man note on the stock market position
and prospect Wall Street gradually
formed some tentative conclusions whicl
corresponded with the action Of the share
, list. During the afternoon washington
advices were much less unanimous II
their forecasts Of "A speedy break OF re-
latlons with Germany. but with llt'l'
ASSISTANCE OF NdSIIlilE'bH 'llhlpU ~
guide it the financial community decide
for the moment TO assume that despite al
the collateral circumstances of the Lusi
tania anniversary which compl!cate tn
problem at Washington. and despite IN
unsatisfactory contents of the Germa'
response. an immediate severance OF re
@lations with Germany Was hardly likel.
to ensue.
The note. taken rs a whole. seemed :
di,Close great anxiety on the part q
Germany to avoid a break. and this
was thought night offset liz deficienc'
as such a declaration as Washington de
mauded last month Still ut the best. /
was observed, the German reply doe
not obviously conduce to a perinanen
settlement Of the outstanding issues. am
/; seems to leave a continuing uncer
,ainty depending no longer upon wha
Berlin says to Washington. hut on wha
German submarines do in their warfar
on merchant shipping.
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