The sun., 1916-10-20
FINANCIAL NEWS
AND COMMENT
Operations Show Evidence Of
Buying in Expectation Of
Higher Prices.
TRADING SCOPE wIDENS
Wheat Sells Around S1.7O a
Bushel, Highest Figure
in 18 Years.
TRADING SCOPE wIDENs

Stock market trading Yesterday had
all the earmarlss Of Q sound and con-
s'stent speculation FOR higher pr,cey.
Advances were orderly and interrupted
with frequent healthful reactions, while
the character Of the buying was Of tho
sort that encouraged the expectation OF
further appreciation In market values.
especially in the high class rails and for
that matter in the cheap priced tissues
as we'll. including the stocks Of COM
panies which have been IN process Of
successful reorganization.
There has been such q marked change
In the position Of the American rail-
ing power and financial credit, while
there 10 10 much optimism regarding the
volume Of rail traflc for months to
come. to say nothing Of the growing be-
lief In the Wall Street district that the
period OF popular agitation against the
railroad corporations has run It's course
that railroad securities are finding far
better market than At any other time
In the last two years. The railroads.
according to the Wall Street way Of
thinking. are coming into their own.
Speculation In tho rails was mod
crately heavy. while investment buying
was active. High grade issues were
taken out OF the floating supply and
locked In strong boxes. with buying re-
ported for the account Of substantial
financial institutions. Tho trust COM
panies were buyers and big houses
bought for their richest customers, while
much Of the speculative buying was done
on cash basis. New York Central,
v'piCy n cS0~ pAaASn~ onA "a
Western were In demand. and among
lower priced issues Chesapeake and Ohio.
which eventually will ne restored to the
dividend column: Chicago Great West
ern. Chicago. Rock Island and Pacisc.
Western Maryland and tho Wabash Is
sues were prominent in the dealings.
Along with tho activity IN tho rails
came an increased inquiry for the rail
way equipment shares. The railroads
are heavy buyers Of rolling stock and
general supplies indeed. they are buy.
Ing moro just now than they have re-
ported at any time before In several
years. with the prospects favor1ng All
| enlargement In the movement. despite
the fact that delivery on current con-
tracts cannot he made until we'll into
| 1917.
II q estimated that within the las,
thirty days the rail transportation COM
|
and locomotives agGregating gross
value OF more than 3&0.o0o.0o0. II Is
| estimated also that there Ia a shortage
| IN tho United States Of upward ~ 10000
freight cars. notwithstanding that the
| roads are receiving a fair total Of de-
liveries on orders placed months ago
| High grade epec!alties and epecialtie-
OF less intrinsic and marke; value wers
| features Of the days trading And
I Al a. Il
~" tho preceding day hsd moved To sen
II was a market Of many features ant
the greater number Of them were favor
able TO stability and strength II
financial values. Total dealings we're II
excess Of l.300.o0 shares. OF whic.
United States steel common. which wa,
strong throughout the day. provided .
substantial proportion.
| Interest in the commodity markets aga.l
was active. particularly in wheat. whicl
moved TO the highest price for tho lns
eighteen yenrs az almos, $40 the hushe
In 1918 "A high of s1.s7 was reported
while IN 1925 quotation OF si.s5 wa
I recorded, 'he latter movement being du
10 AFR unsuccessful attempt 70 oorne
the market. IN 1858 n successful corne
was established, nth the price going {
81
In the present insia',e wheat IL NOV
ing IN response TO buying which Ia base
upon the mos. extraor d!nary condition
ever recorded IN the grain trade rathc
than upon speculative manipulation. Cot
ton easeh off on a natural S>sliziu
movement. but the bulls on me sop
continue to predict higher quotations.
Money was easy and IN good suppl!
with tho general money situation wi'ho,
new feature. In the weekly foreign han
rctwns tho oniy striking change was
substantial gain in gold By the Bank {
England. tho Ban', OF France and N
Imperial Bank Of Germany. Forc'gne,
evidently are going into their stockins
10 turn In the precious metal to the
great central banking institutions.