The sun., 1916-09-01
FINANCIAL NEWS
AND COMMENT
Prices 60 Up on Wall Streets
Belief q Railroad Tieup
Would Be Avcrted.
STEEL Is AGAIN AT 80 3-8
Extra Dividend Declarations
Add to Nervousness Of
Shorts.
STEEL Is AGAIN AT 30 3-8

The short interest In the current stock
market Is nervous and not a. all sure Of
It's position. This fact was exemplitied
In yesterdays Stock Exchange dealings.
when indications of more favorable pros
poets for Uninterrupted railway traffic
next week were effective in bringing
about sharp rallies in prices. the up
ward movement having the additional
backing Of extra dividend declarations
by a number Of copper metal producing
companies.
In the last i've minutes OF business
the advance was checked by a ruinor
circulated around the floor that in spite
OF the earlier advices from Washing
ton that the outlook favored the en-
ac.ment Of legislation which would pre-
vent a railroad tieup conditions had
changed to an extent warianting the
assumption that n walk out of railroad
workers would take place on schedule
time. The rumor appeared to he wholly
based upon the imagination or hopes
OF bearish traders who had become
frightened over the persistent strength
In United States Steel and other Issues.
Bearish rumors often crop out near
the close OF a bull day in stocks. Last
year they took tho form of another
ship with Americans on board reported
sent to the bottom.
LNluSICe VI kpOu my III ueNflOU'Q III
the early dealings. bu. he shorts did not
follow the lead until the afternoon. when
they made haste to cover. The short in
terest was reduced, but Il was not elimi-
mated. n after the close Of business
gossip In we'll informed speculative quar-
tiers suggested the idea that the size Of
the bear account outstanding was still
large enough to be an effective factor In
pushing prices to better levels In the
ANsAa -
ments.
As a matter Of fact there probably Is
a larger shor: interest in the current mar
ket than any reported In many months.
II IL particularly pronounced in Steel
common, n~otwithstan ling the advance in
that issue yesterday to the high point OF
s9S established n week or more ago.
There Is a big short ~interes. in Reading
and Union Pacific also likewise in the
copper shares.
On the reactions in the forenoon oper-
atoms trading tended to contract. while
on the afternoon risn increased buying
was reported. Outsiders were more In
evidence on the buying side. substantial
Wall Stree: Interests were noted AS TAX
ing various attractive issues on the early
recessions. and In banking quarters Their.
was no change In the opinion held there
that eventually securities prices would
move to a materially better range and
that irrespective of railroad labor con-
di.ions the outlook warranted the invest.
ment OF funds In high grade stocks and
mortgage issues. Dealings In the latter
outside the Stock Exchange were heavier
than recently noted.
There was no indication at any time
In the session Of investmen, liquidation
or outside speculative selling becaus.
OF the threatened s.riko. 1t was a mar
ket which lived w TO the recent day Ia
day statements and predictions made
by the leading financial men in the
street and currently reported in this
olumn. 1t reflected the strength OF
underlying condi;ions-the great basi,
factors which for weeks have made il
"a market t. be talked about and re-
membered.
An a in cotton. representing 4
rise OF 50 "A bale, was an incident ;ha
was without influence upon stocks, bu,
the improvement in the grain market
which was based upon the more el.
c~ourag!ng reports from Washington. tiS.
urtd with the bulllsh arguments OF
stocks. The Governments report OF
cotton as OF August - showed "A con.
dition of 6i,2 per cent. OF normal as
compared with ':.3 per cent. on July -
and CO. per cent. on August - last
year. The estimated yield. however. wa.
above the INA! harvest of 1915. al
though far under the record yield o'
two years agn. The worlds demand. in,
Guiding our own. for American cottor
is estimated by Cotton Exchange mer
al 10000, 900 bales. Unfortunately, sine,
August % there has been further ap,
parent falling of In the condition OF tn,
plant.
There was no particular activity IL
| fpreiUn ayppanUc i,ts t.nrp,,p ,A.rl.