The sun., 1916-09-24
FINANCIAL NEWS
And COMMENT
Stocks Jump Again on Sales Of
1.O23,0OO Shares in Two
Hour Session.
STEEL CLIMBS TO III 1-2
Public Rushcs to Buy Coppers,
$4,000, 600 Order Of Al
lies Being Closed.
STEEL CLIMBS TO III 1-2
when the United state, Steel Corpora

When the United States Steel Corpora
tion was organized In 1901 Its large COM
mon stock capitalization represented
water. while more than 800. 0o0. 900 n
the preferred war In the same class.
Since hat time water has changed Into
real value. and conservative estimates
to-day place the assets Of tho corpora.
ton available for the common stock at
more than s5l3. 900. 900. which would
show value Of more than 800 q share
for the Junior security.
As the corporation 10 earning at the
rate Of more than 10 per cent. . . on
that security. as the prospects favor the
same rate. or better. in the time Of the
European wal and as II 10 figured BY
ultra conservative observers that IN nor
nal periods earnings will be IL per cent.
or more. there Ia no good reason for the
! comment in bearish quarters of Wall
Street tina the new high record OF 117h
established by the stock yesterday rep
rcsents imitation.
Steel common ran ahead Of the general
market both I'm point Of net price apprc-
citation and In the volume Of business. ex-
cept In respect of the advance In Max
we'll Motor. which gained an, against
~ for Steel. The dealings In the latter
exceeded 400, 900 shares, n OF the heav-
lest two hour t%urnovers in the history OF
the Stock Exchange.
Spectators who had been fighting the
upward swing In Steel again were AL
mos, panic stricken. Their operations on
A. IT,. III. l,.l -., ,,,al, aUntnaf
the Judgment of public opinion based
upon the most extraordinary conditions
IN the steel industry in the history OF
Inc country. And their operations were
conducted also In the face Of signs APP
parent TO the verlest ~neophyto In Wall
Street that the substantial banking inter-
ests Identified with the United States
Steel Corporation we're heartily In favor
OF the forward movement in its securi-
ties.
Superlatives ran hardly express the
position Of the steel trade. The steel
shares are rejecting those conditions and
Indirectly all the o,ht- favorable factors
In the world of trade and finance.
United States steel while contributing
q substantial proportion OF the total deal
ings OF l.023,s00 shares was not alone in
the speculative iimeiiSht. Tho coprcrs
went forward under the influence or pub
lie buying and short covering also. The
accompanied the announce
ment of the placing In this market for
the account of the Allies of the largest
contract for copper metal in the history
Of the trade. with a money value OF
about sl3l. 200. 600.
A stock market based upon history
making developments in steel, copper and
other trades and upon an era Of tremen-
dous gold supplies IN SO wholly without
precedent that II cannot be discussed
along ordinary lines. nor can ordinary
standards be used in specializing upon
its coming movements. There has been
70 much stock taken out OF the market
on actual lash purchases and there Is
such an abundance OF credit Tor nnanc-
ing further expansion In the dealings
that II is absurd TO attempt to apply
the usual measures to the movement.
Perhaps there Is to be an overwhelin-
ing advance in prices under the spur OF
great gold imitation. That would end
with the disastrous results Incident 10
all periods Of imitation. But that situa-
tion IA not within tho immediate per-
spective.
Unusually favorable weekly trade re-
ports, record breaking bank clearings.
the tremendous new foreign demand Tor
our copper and a strikingly strong bank
statement were developments OF yester-
day that doubtless will find their place
TO a more intensified extent in the mar
ket Of tho current week. Stock market
enthusiasts, however. should be prepared
against the possibility OF a sizable reac-
ton. -
In spite OF the great expansion In
stock market activity In the last week
the combined statements OF the Clearing
House banks showed an increase IN
A--Aa
loans OF only &it,25b.o0o, wh'io excess
r...rvc rose more thar s25. 900, 900 to
a,,I1a4130. as compared with actual
cash holdings Of sssl,%52, 1000. Gold
ho,d,nrs Increased more than Sl9,0oo.00U