The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-27
FINANCIAL NEWS
AND COMMENT
Wall Street Makes a Poor Re-
Spouse to the T.. s. Steel
Developments.
STOCKS FALL FURTHER

That the other influences which have
yersely Of late were for the time being
still more a factor in the trading
han the constructive forces which are
operating in the general business field
n emauating therefrom was attested
IN yesterdays session. The principal
unfaNorable influence OF the sort Is un-
~questionably exerted by the congested
speculative account which was open for
.he rise three months ago when the
market began to labor so heavily in its
effort to reflect the Increase Of actual
values resulting from the profitable &C.
! tivitv Of trade and industry.
Widespread expansion has continued
TO make progress in the business COM
munity and no qualification can be
made OF the impressively optimistic ex-
hibit OF conditions furnished in the res
toration OF United States Steel 10 a
dividend basis and in the record breaking
earnings which the ompany reported
on Tuesday afternoon after the close OF
business. However. the temporary coun-
teractlng factors asserted themselves
yesterday in the share list and Wall
street had another day OF liquidation
and general decline.
\ good deal OF the liquidation was
unquestionably owing 10 the speculative
disappointment felt over the failure OF
the market to make a response OF more
than the briefest display of strength
to the outcome of the quarterly meet
ing of the Steel Corporation directors.
The widespread attention given to the
evidence of business conditions supplied
hy the status of the Steel Corporation
and the encouraging emphasis laid
upon 1t might well have prepared Wall
Street for an invasion OF buy ers.
In the early dealings there was a dis
play of a demand for stocks. apparently,
, however. more to cover short commit
ments thar to enter into or increase en-
, Gagements for the rise. From then on
the market fairly ciamored for buyers
and found sellers. After the early re-
action there was a dull interval which
invited pr fcssional attack against prices
and speculative pressure OF TIE sort was
successful in inducing general l!quids-
ton.
There were only ftful and feeble
rallies as the session advanced and
prices were carried to the lowest OF the
day in the last hour. the market closing
weak at substantial losses, with few ex-
ceptions TO the general setback. Early
weakness in the railroad list resulting
from the actual liquidation OF foreign
holdings or the apprehension Of II, to-
gether with the check on buying i'm
pulses caused by the prospect OF an ex-
tenSive labor controversy, undoubtedly
made IL difficult for the rest of the mar
ket to maintain any rising trend. Under
the circumstances II is not surprising
that speculative conjecture ranged IN all
directions for reasons TO supplement
technical explanations for .he persist
'nce of liquidation and weakness. but
European advices about the posture Of
the war and m on domestic poll
ties seemed In reality TO ave very little
To- do with the dealings on the Stock
, Exchange.
To a considerable extent undoubtedly
the warnings that have been given about
the necessity Of considering the r~eadjust-
ment which the end Of the war will
require have entered into the specula-
tive reckoning. hut the controlling fac
tor In the Wal Street situation has un-
mistskably hean the ov%erbought condi-
ton of he speculative account. Ac-
cordiugly IL Is equally manifest that
tho position has been much relieved Of
late and is growing safer with every
day ~ such trading as Yesterday. There
IL no blockade In the investment market
and the money market Conduces to the
accommodation OF securities in collateral
loans instead Of compelling their dis
Judgment. No matter what the specula-
tive sequel Of every highly favorable de-
velopment proving the enhancement OF
trade and industrial values. the neces-
stiles OF speculative sellers seem to
present excellent opportunities TO dis
eliminating buyers.