New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-26
Scattered Gains Early in
Standardization Tow
ard the Close.
u. 5. STEEL STARTS
UP AND THEN STOPS
Railroad Stocks Not So Active
Great Britain TO Tax Out
Our Securities.

After scattered gains in the fore
noon, the security market yesterday
quoted and fell back toward the close.
Business was of so professional a
nature that proft-taking following the
limited early rise wiped out a good
portion of the gain, and. IN addition,
the short interest added some late
selling pressure Railroad stocks
played a less important part in the
dealings, though Reading was still the
most active issue.
United States Steel in the latter
part Of the morning rose above Sc to
its best for weeks On purchasing by
large speculative interests. The rise
was not followed up. however. and it
closed considerably below its best at
a shade under Sc, not quite a point
higher on the day. News Of further
reductions in prices of steel products
was more than Offset by reports OF
heavy purchasing of shell-making ma
tcrial for export.
Early in the day Reading rose .
points. as traders who had sold short
10 accompany proft-taking in this IS
sue found IT difficult 70 cover their
commitments. When this short cover
ing was completed the stock weakened
again, ard In the afternoon got down
under l02, ending only little above
its lowest, with a loss Of more than a
point. Erie was also strong in the
morning Good earnings statements
by Union and Northern Pacific were
ignored.
The strength In Steel after so long
a period Of small dealings and narrow
fluctuations had for a while consider
able of stimulating effect elsewhere.
Advances of l and 2 points were made
in the war group and the Marine
stocks continued Wednesdays recov-
ery, but most all of these gains were
lost before the end of the day.
Some uncertainty was caused In the
late trading by a report from London
that the Chancellor Of the Exchequer
would recommend an additional IN
come tax Of 10 per cent on American
securities desired by the government
This addition TO imposts already heavy
would. il was considered, bring out
n large proportion of whatever Amer
lean holdings yet remained unmobi-
lized. That such a step should be
necessary implies that the amount OF
our securities in possession OF the
British Government is considered IN
adequate for control OF exchange
rates between this country and Lon
don
Taxing out American stocks and
bonds was suggested when trst ster-
ling broke here as result OF the
heavy purchasing on account OF the
Allies. At that time u was SAID thaI
London's position as great lnterna-
tional money centre prohibited any
such discrimination against those Out
side her borders who had come 10
England for funds. Gradually now
ever. London has been forced 10 give
up considerations Of future preStige
because Of present necessity. Ne"
security issues for foreign account
have been practically prohibited Ohly
a semblance is maintained OF Tree
market for gold Now IT has become
necessary 10 place dlscIlminaIoIy
tsves ON income from foreign secur-
tiles. formerly considered an eSpeul-
ent of financially weak nations.
How GREAT is the burden that Lon
don carries as banker for the Allles
ennears I'm the report Of our foreign
trade last month. With all the dlEl-
cuItv Of an inadequate supply Of ocean
tonnage. exports we're more thah
S $4,000 ooO. GOO. only about s5.OOo,poo less
tban in March. As imports reached a
new ,' high record at nearly $2l8'ooo',
OOo tho favorable trade balance OF
S SySi 500. 600 was nearly 100000 be
low that Of the month before The
total oG excess Of exports for the ten
months Of the fiscal year, h owe
cached more than S1,67S,OOOOOO.