The sun., 1916-09-20
FINANCIAL NEWS
AND COMMENT
Active Demand Counteracts
Efforts Of Professionals to
Hammer Prices.
STRONG UNDERGONE SEEN
Indications Of a Reaction in
Market Suggested at Times
During Day.
STRONG UNDERGONE SEEN

~ ~ III Nv q VI NSh0t
days operations in the Stock Exchange
to bring about materially lower market
values. the demand was active enough 70
give the general price level a decidedly
strong untc-tone throughout the nve
hours Of business. with sharp advances
recorded In various parts Of tho list and
declines when reported usually small.
There was not the enthusiastic buying
for pubic account which had marked the
transactions Of recent preceding days,
but there was. nevertheless, a certain
amount Of good buying by the outside
element. while there was accumulation
also Of various issues on the reactions
by s~ubstant'al Wall Street operators who
are handling their present speculative
business on tho basis OF long time re-
suits.
Tho prcnt taking and bear pressure In
the day served to bring about irregular
tendencies but no instances Of real weak
ness. the " movements strengthening
the technical position OF the market and.
according TO many observers. paving the
way for further improvement In market
values.
Traders who have been bear,sh for
man.? days because OF their failure to get
into the market at the start Of the cur
rent forward movement naturally ar.
working overtime TO weaken prices. I'm
der ordinary conditions they would hav,
been successful several days ago. but. as
frequently pointed out In this column.
current conditions are not ordinary and
prices are not moving according to prece-
dent. Th idea yenturcd In certain bear
ish quarters Yesterday that prices should
| react from 8 to 10 points does not APP
Pea. 70 tho careful student Of the OK
traordinary position OF money n bus!-
! ness. or TO the men who are IN clos
touch with the banking powers. whose
cordial and active approval Of the pres
cut bull speculation has done much 10
bring IN one Of the strongest public fol-
low rgs ever reported In the history Of
the street.
There IL no good reason why there
should he L big reaction. A slzable re-
action, however. may develop before the
market again starts toward substantially
higher levels, Indications OF such n move
ment being suggested AZ times In yester-
days session. Many Of the public oper-
ators who had converted their paper
profits into cash did not renew their long
! ccounts because OF the idea that there
night be better opportunities 10 take q
new position on the long side AZ more al
tractivc prices.
I. did not appear probable. however.
NJ least from tho point of view OF the
real leaders in the street. that without
some radical change in underlying con
ditIouS tho mlrEet would run into q pc
rod of sustained cheaper prices for
weeks and even months to come. The
hoar may tear the situation TO pieces IN
his mind aui fume about 4 big decline
Q l,,t ba na,pn, IN tat,pJ tina farfs Wftrh
just now a; least are all against him.
credit Is sound, and there has been nc
, strain uron bank reserves because OF the
! public Speculation IN stocks, There has
been no overst.mulation either IN specu.
1 'ltion or IN the courtry's business
SoIud business. e1sy money and abiding
confidence IN financial md mercantile
quarters provide an argumen. that can
rot be dismissed or overshadowed by
temporary upsct:l,ng factors In current
discussion OF the securities market.
Earnings are proving the measure o.
value. And he cumulative evidence thai
tho generally unsound economic policies
of the prcscn. Washington Administra
ton vii, give way 10 hroader an1
stronger principles Of business ant
finance by the Republican victory IN No
yc,rber Is encouraging holders OF in
I rcstment securities to place a h'gAe'
valuation on their holdiNgs,
In the course OF tho day United State
steel moved to 100. a new high record
IT," copper stocks appeared TO be II
process OF accumulation many OF IN
representative ~specialt.es advanced ma
'cr,a,ly and the prominent rails. al
though under pressure. held remarkabl,
we'll. Selling and buying orders wer'
fairly balanced IN the majority o
issues.
Sales arain exceeded 1000, coo shares
!. was tho eleventh consecutive fv'
hour session IN which transaction
egualied or exceeded that total.
Money was easy. with call loans rulini
under 3 per cent, while time funds wer'
without any especial change. Nor wa
there any change OF significance In tn
foreign exchange market.