The sun., 1916-09-30
FINANCIAL NEWS
AND COMMENT
Public Buying Wave Sends
Steel and other Issues to
Record Marks.
IN CASH PURCHASES
Stock Exchange Transactions
Second Largest in Present
Movement.

Early strength In Stock Exchange
rrices attracted active public buying In
oil the prominent issues. the movement
extending throughout the day TO tho ac-
compartment Of new high records for
riany Issues. Including United States
Steel common and an increase In the
volume Of cash purchases, especially In
soinc Of III, second rate shares In which
equities are becoming more valuable. II
was the sccoad heaviest daily business In
the current forward movement.
Operators who opposed tho advance
came out on the wrong side OF the ac-
count. And operators who asserted that
The rise was OF its last legs could not
back UP their theories with anything
more tangible than tho condition of spec
ulation itself. which doubtless would
have improved through the development
&C n good sized reaction. Reactions. how
ever. do not spell the end Of n bull move
nent which Is based upon the most
extraordinary situation In business and
finance In the history ot the country.
particularly when market value as n
whole do not overneasure income yields.
Ordinary bull markets generally carry
prices To a. point which more than
measures the intrinsic merit OF securi-
tics, but tho present movement has not
yet touched the mark rejecting the real
worth OF the greater humble Of stocks.
According TO come observers In tho
financial district tho advance must run
| much further before that point will 10
reached. The fact. however. that ma
terial Improvement may be recorded
above present quotations docs not pre-
clude the possibility Of sharp and Sc
we're setbacka.
Buying Of the steel and equipment
shares yesterday was excellent and
maximum advances were striking. No
good reason could be found why opera
tcrs should not buy into tho two groups.
especially those buyers who bought for
cash, while on the other hand there
were many sound logical arguments for
tho accumulation of the various issues.
The steel mills are working tn ca
paclty. which has been engaged for
months ahead. and they are compelled
to decline many profitable contracts be-
cause OF their congcsted condition. Do
nestle railroads are placing orders for
new equipment in greater volume than
At any preceding time in the history Of
the American rail transportation busi-
ness. And In addition to the domestic
demand the equipment companies are
receiving al enormous amount Of foreign
business.
II would he surprising 10 The Street
were not builish m the steel and equip.
ment shares and the copper issues as
well.
Time money VAS easy and call loans
ruled AZ "a per cent. the slightly frmer
tendency In the latter being due wholly
10 preparations for :hs October settle
meats. Notable expansion in general
business and record operations In the
stock market were reflected in an in
crease for the week In local Clearing
House payments OF SO per cent. over the
corresponding week last year and &c per
cent. over 1913. without any change In
tho position OF the loan market. The
banks gained in the wa; ended yes.
terday more than $4,000. 900 on their
operations with the interior and more
than $4,000. 900 from imported gold.
while they lost a little more than So
000. 900 net on their transactions with
the Federal Reserve Bank.