The sun., 1916-08-31
FINANCIAL NEWS
&. AND COMMENT
Professionals Hammer Prices,
Aided by the Fear Of q
Railroad Tieup.
NET LOSSES NOT HEAVY
Investment Selling Absent, as
Bankers Still Advise
Holding Stocks.
NET LOSSES NOT HEAVY

Notwithstanding efforts by profess
| sionai traders to bring about materially
lower prices In yesterdays Stock EN-
change dealings there were few instances
where maximum declines ran beyond a
point. while net losses as a rule were
confined to. fractions. And there were
| various issues which closed at net gains.
as In the case Of the Mercantile Marines
and United States Steel common.
Tho proposed strike doomed large In
many minds. but It failed TO attract i'm
portant selling Of securities. while 1t
failed also to create uneasiness In fnan-
cial quarters. where a cessation Of rail-
road traffic throughout the country
doubtless would serve TO upset. for a
time at least. certain operations now un-
der consideration. Bankers appeared to
have even greater confidence than here
tofore noted In the theory hat the mag
nitude Of the consequences that would
be involved In a prolonged and successful
tieup OF transportation facilities would
tend to bring "A strike TO n speedy end.
Congress plans were too nebulous TO
form any basis upon whica the ordinary
operator could make extended stock
market commitment for either account.
Advices which came to the street sug-
gested as much difference OF opinion In
Washington regarding the immediate
outcome OF the situation as there was In
the financial district. but the course OF
prices again called attention to the fact
that stocks are In the hands OF people
unafraid. There was no investment sell
Ing. There was no liquidation OF out
side speculative accounts except in the
case OF accounts for a few unimportant
commission house interests.
The preponderance OF favorable factors
In the general situation. tho strength OF
basic conditions governing the actual
worth Of Investment securities and the
freedom with which experienced bankers
advised their friends and customers t.
maintain a tight grip upon their invest
ment possessions were reflected in the
absence Of the sort OF selling that n
threatened paralysis OF rail transporta-
ton business would attract with general
conditions less sound than they are q;
present.
The current market is extraordinary
and unprecedented, no matter the angle
from which II may be viewed. Never
theless It is n natural market. II Is no,
being held up by artificial support or BY
speculative manipulation.
bedTlsHly uispOSeu tTdUNVs dsScTtet
that II a strike should become effective
holders Of securities would become panic
stricken. They asserted Furthermore
that the absence OF selling so far mere
ly represented n false assumption on tho
part Of both investors and spectators
that the labor situation could not upset
investment values. while they backed
their opinion by remaining short OF
stocks.
The discussion between hears and
bulls has become almost academic. !,
Is conceivable that present confident bull
spectators might become pan!cky Chat
~ something which not u~nfreQuently
happens no matter the strength of un
DERIVING cond!tions). but It Is hardly
reasonable 10 believe investors will bulge
from their evident determination 10 keen
their securities where they belong. Ac-
cording to conservative bankers IL not
only Is a good time 10 keep securities IN
strong boxes. but TO d to the supplies
on all attractive opportunities for the
accumulation OF the high grade issues.
Wall Street took but a passing inter
est In the latest foreign war develop
ments. which. however. again were re-
Elected In a further rise In exchange on
P~etrograd m weakness In German
marks. which went to a new low record.
, Weakness in the wheat market was due
more to railroad strike talk than 10
news from the Balkans.