The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-20
FINANCIAL NEWS
AND COMMENT
Stock Market Depressed by
Latest Developments in
Mexican Crisis.
DECLINES ARE E

Ordefs 10 mODiliEo the National GUARD
for Federal service along the oountrys
southern border emphasized the acute
stage finally reached in the Mexican
crisis and made Wall Street reflect
through the stock market yesterday a
more serious view Of the possibilities Of
belligerency than Il has held at any time
since Mexican affairs became menacins
three years or more ago. The upshot
Of the Developments over the week end
was . weak stock market session result
Ing from speculative safes for 10th &C.
counts. II was manifest in every I'm
portant quarter that declines were looked
upon q furnishing an excellent oppor-
tunity for the purchase OF corporate
shares on . basis Of Extraordinary FUN
damental strength which has not been at
any time adequately expressed in the
values quoted since the outbreak Of the
European wal started an extraordinary
augmentation Of the essential factors OF
values In this country. The long range
financial view was. however. different
from the superficial trading view Of the
Stock Exchange n the market yielded
to the application Of selling pressure,
Transactions were on an expanded scale
although they failed to constitute a
record Of remarkable activity. The
ours Of prices after some initial hesi-
fancy was persistently downward. The
period Of most pronounced weakness VA
in tho last hour. Some rally took place
toward the CLOSE. presumably the -
suit Of short covering purchases. but III
HnAI NINA una hAAVO and nat ~hoaOAN
for the day made q uniform array Of
more OF less substantial declineAA
Rails and industrials Jared pretty
much alike IN the dealings, but Somewha,
o~uriously stocks Of war munition con
Germs were among the weakest Pos.
sibly this was explained on the theory
that In the event of necessity suc cor.
poratfons would be heavily taxed for che
military expenses Of the Government. al
though It might be pointed out that taxes
could only be proportioned to an increase
OF profits. Government bonds were
heavy because OF the assumption thai
Washington must forthwith have re-
course to a war a
Scattered liquidation from a nervou
and rather shaky speculative long ac-
count In the commission houses was
obviously responsible for the bulk OF
the pressure on the share list. but II was
stimulated by trading operations for the
decline. In such a market. with
the wonderful underlying position OF
strength which o exists. supported by
the prosperity which trade and industry
have achieved and by the ample capacity
OF the money market TO ind funds 70,
any exlgency. II Is obvious that the buy.
ing Of stocks must be better than selling
promoted by reasons OF tho kind which
were influential yesterday. Condition.
to-day are vastly different from three
years ago. when Mexico nrst began &c
threaten us with trouble. for the fnan.
ciai md business communities ave beer
tested and seasoned by the shock AND
strain OF the great war In Europe and
the foundations Of values have beer
enormously strengthened by the singular
economic relation which the United
states has come to hold to the rest o,
the world In consequence Of the Euro
pean war.
Some as,ute observers were Of ths
opinion yesterday that stocks were dis
tinctly cheap. but In any case It must bt
agreed that they have been selling at a
very reasonable level lately and thel,
%cheapness at any moderate abatement o,
this level will become obvious. Th'.
view Is, moreover. quite consistent VIII
the opinion rather freely vouched yester.
day that prices. on speculative consid
erations alone, would naturally incline
downward In traditional Difference to 2
prospect Of bell,gerency even though the
discernible strain could not he regarded
as important in proportion 20 nationa
resources. Recently stocks tended tc
sag after lapslng into inertia at the
stage OF ecovery attained In the last
few weeks. and the occurrences over m,
week end accelerated the downward
y,,n,.np,ns A,nNr|ipp m
judgment such q decline in the presen,
circumstances might be expected to &c
on only until the dimensions Of the new
Mexican could he approx.
mately estimated or until II VAS dis
covered that stocks were being sold into
a very large bag.
There was not during the day very
riuch discussion of the chances for a
termination Of the new phase Of the
Mexican crisis either in actual hostili.
ties or in a mere show Of force. The
financial community took II for granted
somewhat alphabetically that a situation
Rad been contrived largely through q
! series Of blunderings at Washington In
accordance with theories Of impractical
fitility as we'll as through the rapid
progress OF Mexico to "A state Of com
r!cte anarchy. The situation 80 com
pretended was looke upon as some.
thing that compelled Washington 4
act decisively and equally obliged the
country to see II through, but the pre-.
Ealing influence for stock market de.
preston vas not eXerted by the formi.
dable nature of any contingent undertake,
ing. II seemed to be the feeling that
more practical M less prejudiced poll
cies at Washington would nave averted
the situation which had now presented
itself.
Practically nothing else than Tho
Mexican crisis was noted during the
Wall Street day. As soon as the per.
spectives OF the financial district have
been adjusted to this matter II may h
assumed that influences and factors OF
more permanent Importance will agar
command attention, and when they dc
Wal Street will perceive no reason fol
altering it's confidence in the soundnes.
OF the values which have been In the
process Of establishment during the las,