The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-01-21

4NN" yin wy JAM ~ A(iO'
The second week OF the new veal
gives every evidence of heavy liqui
dation in the stock market. Active
selling Of large number of the lead
ing industrials and railroad shares
session, the proof being in the MANY
have been offered. This is phase Of
the situation that has not been quite
so prominent i'll recent months, and
which must be reckoned with to a
larger extent for the immediate future
at least. While it is true that the
liquidation OF American securities on
the foreign account has been the regu-
lar feature of a whole year, the buying
demand has been equal to this selling
pressure, due to the tremendous in
crease of public interest in the
security markets.
Should there at any time develop a
combined domestic and foreign selling
campaign, the course of the stock
market would not appear quite SC
roseate to many of the bold operators
as they would desire it to be. Having
successfully withstood the liquidation
of the past year, during the process oil
which over billion dollars worth oil
our securities were absorbed by
American investors and institutions
there is slight cause for misgiving in
solar as foreign financial invasion is
concerned 1t has already been shown
that our debts to Europe Gin the shape
OF stocks, bonds and mortgages is
much smaller that the authentic" es-
Inmates of high financial authorities,
and the residue is held by persons
who will not be under such great
pressure to dispose of them.
From figures recently made public
by the United States Steel corporation
it will be seen that since September,
1915. there has been decrease of
10000 in the number of shares of
common stock held by foreign in
vestors. Before the war started there
were l,285,636 shares of United States
Steel common held by European stock
holders, and on December 81, 1915,
the number had decreased to 696,63l
shares. or little less than a 50 per
cent decrease. In view of the fact
that 100000 shares of this stock was
dumped onto our markets in a year
and half, the upward movement of
the stock is all the more remarkable.
Stockholders are now hoping for an
assurance that the directors of this
corporation will be sufficient" liberal
from the standpoint of dividends to
warrant their estimate of enhanced
values for their portion of the owner
ship of our giant steel corporation. If
the recent activity in the steel mar
kcts Is any criterion, there is ample
grounds for the high hopes Of these
stockholders. The latest monthly
statement of the Steel Corporation
shows the total of untitled orders on
December 81 to be 7,8O6,22O tons. a
gain of more than 100000 over Novem-
Der, and corresponding with 3,324,5o4
in November of last year. This is
probably the high-water mark in the
untitled tonnage of the company, and
insureS the continuous operation of
all its facilities on a high percentage
tor many months.
So far as the general financial and
speculative markets are concerned.
there seems to be no definite influence
that would account for the general re-
eession in the price level that has
been so conspicuous in this weeks
trading. The situation appears to be
that holders of the war industrials"
have been discouraged BY the recent
utterances of our financial leaders. and
that they no longer see the possibili-
ties for great profits which these
stocks had apparently held out. This
is further emphasized by the decrease
OF munitions orders from the Allies
they being more able from now on
to provide themselves with the ne
cessities Of war. Disappointment has
been expressed by new stockholders
OF the industrial companies that have
recently come into popular favor, be-
cause OF the failure of the directors
to announce dividends commensurate
with their expectations. They appar-
emily do not consider that there is
long road between a prospective war
order and a comfortable dividend
check. despite the fact that business
leaders, and reliable newspapers have
pointed out the dangers of
heir position.
The railroad stocks have stood no
strongly, and seem to be more able
@ withstand the unsettling influences
which are driving downward the
'rices of the industrial. Railroad
business continues to show an excel
ent expansion, with still better pros
'ects in view. The monthly bulletin
ot the American Railway Association
moved, as of January LIST, a surplus
u unemployed cars numbering less
han $4,000. Figures are not available
or the corresponding period last wear
is the publication of the idle car state