New-York tribune., 1916-07-12
MARKET NEWS
AND COMMENT
Some Large Losses Taken
by the Industrial
Specialties.
OLD LINE ISSUES
ALSO SELL LOWER
Real Liquidation More in Evil
dence - Call Money
Rates Easier.

Continued pressure against the indus
trial specialties supplied the outstand-
ing feature of yesterdays security mar
ket. Losses of to 8 points and more
were common in the group. Profes-
sional operations on the short side were
assisted by the appearance of real Ii
quidation in many issues. induced ap-
parently by the failure of stocks to dis
play any marked resistance to the sell
ing. Moreover the fact that the old
line railway and industrial issues, in
cluding Steel common. for instance.
oased off with the rest of the list,
tended to promote increased pessimism
among holders of securities. The en-
larged supply of stocks pressing for
sale made itself apparent in the ex-
pansion of business with the turnover
Of stocks exceeding the 100000 share
mark for the first time in fortnight
While proof that the furry in the
money market of the day before. when
the call rate shot up to 6 per cent, had
been merely the result of temporary
considerations was furnished in the
general easing Of rates yesterday. new
ertheless the fact that renewals we're
made at the new high of 5 per cent,
with some new loans placed at that
figure. encouraged bear operations in
stocks. Call money rates declined
quite distinctly toward the end of the
day, however, and closed at AZ per
cent, which was u per cent, under
the high rate of Monday. Fixed date
funds were frmer. London reported
stiffening of discounts to meet the
frmer tone on this side.
Among the weakest features of the
stock market were the old American
Coal product shares, which at one time
were down more than IL points and
closed the day with a net loss of 514
points Mercantile Marine preferred,
which declined sharply toward the end
of the session, left off nearly points
down. Studebaker lost points. Mexi-
can Petroleum points, while losses
of 1 and points in other parts Of the
list were quite common. At the outset
the professional traders in seeking out
weak spots concentrated their efforts
successfully on the motor shares. later
turning TO other industrials. Steel
common reacted with the rest of the
market and closed rs points off. I'm
portant railway shares lost anywhere
from fraction TO full point. About
the only prominent exception to the
movement was Industrial Alcohol, which
proved such a weak issue on Monday.
Yesterday it recovered nearly points
net, and its strength indicated that the
drive there had been somewhat over
done for the moment at least.
News developments-ther were few
of marketwise played only
a small part in shaping the trend OF
prices. The Street concerned itself
chiefly with seeking explanations for
the steady selling of the industrial
shares. How far the movement will 90
before active buying support is encoun-
tered is the all-important question from
the speculative viewpoint. In the mean
time there is evidence of the creation
of large short interest that will have
TO be reckoned with later on. in the
sense that the market ls receiving
thorough cleaning out, which may ulti-
mately react favorably upon the specu-
lative favorites of ante-bellum days,
the current process Of readjustment is
viewed with satisfaction in conserva-
tive quarters.
An aspect of the situation, however,
that is not viewed so complacently is
found in the supply of securities com
ing in from London. Recent steamship
arrivals have brought in large cargoes
of American stocks and bonds, part OF
which may in time come on the market,
although the understanding has been
that they would be used as collateral
for loans. Arrival of s3000,000 of gold
from ottawa yesterday marked the re-
sumption of gold imports after the
lapse of week. This brings the total
of the current movement begun in early
May to approximately sl57,Oo0,OOO;
Despite the fresh receipt of the metal
sterling exchange eased off small
fraction, with sight drafts quoted at
A7bss. development which possibly
NAV have reflected the drawing down
of American banking balances in Lon
don.