The sun., 1916-12-02
FINANCIAL NEWS
AND COMMENT
Stocks Go Up on Good Trade
Reports and British De-
cision on Loan Here.
RAILS ARE IN DEMAND
Call Money Reaches Record for
Year, While Time Rates
Also Advance.
RAILS ARE IN DEMAND

HDBSuCc VI TDIU8 uctclopIncIt
over the holiday. the receipt Of many
favorable reports Of railroad earnings.
including those OF the Pennsylvania
and the New York Central indications
Of continued activity in the steel and
copper industry and a disposition by
Wall Street spectators to accept the
announcement that the British treas
ury would not offer Its short term bills
effective In bringing about advancing
stock market values in the greater part
Of yesterdays session.
Although the speculative element In
the. Street was much perturbed when
the Federal Reserve Board recently
placed the seal Of its disapproval upon
the proposed issuance here Of foreign
treasury notes. It reversed It's senti-
ment when 1t became known that the
fiscal agents In the United States Of
h British Government had been in.
structed to cancel arrangements for an
offer Of British excheQuer bills in the
American market. The idea that this de-
velopment should be construed builishiy
appeared to be based upon the theory
that h Federal Reserve Boards warm
Ing after all was In the best interest Of
our banks, and that in its decision not
to offer Its bills here the British Govern
ment had recognised the power and
status Of u Federal Reserve ~ some
thing with which to be reckoned.
1t cannot be said. however. that bank
ers were similarly affected. Indeed. they
were decidedly disappointed.
Bulls on. the war stocks apparently
have made up their minds thai although
our banks will not subscribe to an issue
Of British Treasury bills there will be
no lack Of credit facilities for the further
financing OF foreign war purchases in
this market. Heavy buying of many
Issues included In this group was re-
ported yesterday. although the idea Of
additional foreign buying Of wal mer-
chandise here was not the sole reason
for the interest displayed In the stocks
OF companies directly and indirectly
Identified with the manufacture Of the
products for which there IL an urgent
foreign market. Domestic buying orders
placed with these companies. a., for
instance. the railway equipment con-
Germs. are enormous. with contracts for
delivery running % far ahead that op-
orators in the various securities naturally
md adequate argument for their opti-
mism.
Industrial shares in general were we'll
taken throughout the day. the move
ments Of the steel issues rejecting a
particularly good demand. United States
Steel. Crucible md Republic Iron and
steel making noteworthy progress to-
ward q higher level. Bullish operations
wa marked in various s~pecialties.
especially In such stocks AS Columbia
Gas. h Cities Gas. which gained
more han IS points. and Pittsburg Coal.
demand for the railroad shares wa
heavier. buying Of them being a wholly
logical outcome Of the remarkably large
earnings reported by various companies
and the evidence OF n growing belief on
the part OF railroad managers In n long
period OF traffic prosperity as shown In
their generous orders for new rolling
stock and rails for far distant delivery
at the highest prices ever paid.
Strength In stocks was not checked
by an advance both In time and call
money rates, the latter moving to a new
high record for the year. A sustained
period Of stir money rates Is not ex-
pected. particularly as more gold IL on
the way 10 New York, but according 10
the known movement OF money in the
current week to-day's Clearing House
statement may show another decrease In
surplus reserve holdings of the banks
the known course of currency In the
week presenting a loss by the local
banks 20 the interior and on their opera.
lions with the Sub-Treasury and the
Federal Reserve Bank. Call money a,
6h per cent. the high point touched In
the day. did not suggest contraction ir
loans large enough to offset the con.
traction In cash as an influence upon
excess reserve.
In the foreign exchange market Ger.
man reichsmarks cables sold down tc
the lowest figure which had been quoted
In h period Of the war. while Austrian
kronen moved to a new low level also
The movement in Teuton exchange
however, did not accompany activity In
tho market. as there was little tradine
either in marks or kronen. There wa,
no general agreement among foreign ex'
change bankers regarding the cause fol
the weakness In the rates. although tn,
greater number of bankers thought II
was based chiefly upon selling In Berlir
on It's operations with Switzerland.