The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-05
FINANCIAL NEWS
AND COMMENT
Stocks Somewhat Unsettled by
the international sit
uatiOn.
DECLINES AFTER A RISE


ton situation. referring 20 the interna-
tional problem presented by submarine
warfare in the Mediterranean. did not
look any better yesterday. n there
was a more evident reflection OF 1t In
the financial district. There was an
uneasy stock market session IN which
something like a struggle went on be-
tween the influences which had been
shaping sentiment for a Stock Exchange
expression OF optimism this month and
the gravity Of the unexpected occurrences
which called on the Government anew
Cor diplomatic decision. Interests COM
mitted to "A programme OF constructive
action encountered opposition IN ariou
directions. but under the circumstance
1t was agreed h a the share list gave
a fairly satisfactory account Of itpelf.
Trading contracted somewhat in
volume from the million share scale of
the first market Of the year, but still
attained al animated aggregate In the
first hour there wa an active n strong
continuation Of the aggressive opera
ions for the rise which were conducted
un Monday. and early In the afternoon
there was n further display of advancing
strength. Under cover OF strength. how
ever, there VIA heavy selling of IN ex-
tensive list Of stocks. SONS OF which,
consplcuously in the group OF war NUM-
ton shares. displayed weakness. which
was accumulated by a pad break In
Canadian Cal n Foundry stock on the
curb. The railroad department moved
steadily forward ut one period. but was
unable to hold Its gain. In the after
noon the market was unsettled and
progressed feverishiy toward an un-
settled close.
Various specialties exhibited strength
sven In the late dealings, but tho mar
ket as a whole was under pressure, es-
| pecially from professional traders. who
! sold rather heavily for a setback. They
argued that the market had made as much
OF n demonstration 81 strength as could
reasonably be expected Of II under the
tes, OF the International situation and
that constructive e~ndeavors We're hardly
likely to he carried on pending n clearer
determination OF this situation. At the
same time there were Signs that Wall
Street placed a good deal Of confidence
In tho basic ~soundness of the position
which supports the level Of quoted values
and was relying more or less confidently
IN the record of success made by Aineri-
can diplomacy 80 far IN avoiding any
breach OF neutral relations toward the
war.
There was some little disposition to
interpret the Washington dispatches In
the light Of the programme OF prepared
ness which has been submitted to Con-
gress. but there was otherwise no in
clination TO form conclusions about the
diplomatic crisis or anticipate It's out
come. incidentally II might he noted
that the wheat market ros. sharply 3
to 4 rents 4 bushel. and was apparently
not affected by the matters which pro.
vided the dominant subject Of stock
market interest.
For the first time IN a very long while
Wall Streets attention was attracted
10 tho money market. The provoking
cause was the gradual rise throughout
the day In the call loan rate from -.
per cent. to 3 per cent. at the close.
II IL not at all unusual for lending
rates to harden a little in the first week
OF a new year., n presumably the move
ment yesterday was OF the seasonal sort
There was nc other obvious reason for
the rise. although borrowers supposed
that lenders were not averse TO suggest
ing in this fashion. as they have FIRE.
quently suggested In the past. that there
were other forms OF obtaining
dalton OH collateral security thar thai
represented by the call money market.
German remittance fell rather ABB
ruptly In the foreign exchanse market
10 40 Is. the lowest level which IL has
yet reached. Sterling exchange, on the
other hand. was strong at All advance
TO the maximum OF recovery attained.
demand bills closing around 4.74A. In
cidentally the Anglo-French bonds held
rather firmly at a further fractional
rally from last weeks low levels. Mean
while the foreign trade movement. de-
spite all shipping and financial obstacles.
continues large. The export balance
for last week was estimated at s25.-
$4,000, and the export balance for the
last six months OF 1915 IL calculated
at about Sl.l5O.O 00, 900, or more than
the record breaking balance for the
whole OF the fiscal year ended June 80
last.