The sun., 1916-08-27
FINANCIAL NEWS
'.' AND COMMENT
Market Refuses to Weaken
Traders Cautious Owing to
Rail Labor Situation.
STRENGTH AT THE CLOSE
Outlook for Investors ID En-
couraging, With Bargains
for Idle Money.

4 direct rejection Of the country's
enormous earning power 10 presented In
Ne course Of the Courrent stock market,
which refuses 10 weaken. either on the
suggestion Of adverse developments or
upon actual pa@ins bearish arguments.
IN yesterdays short session In the stock
1xohangs the apparent gravity Of the
railroad labor situation found expression
ealy to the extent Of checking bullish v.
t1vity and In attracting bearish pressure
nom unimportant professional traders.
TAs operations Of the latter. ct times,
carried prices OF fractionaily. while cov-
sing IN the last half hour BY traders
VINO aid not care to 60 home with out.
Standing short contracts gavs the clos
ms Q strong and somewhat animated ap.
poarAnce.
Substantial market interests refused
to'admit that the railway strike OF ooun-
tryWfds proportions would not upset for
. time the current advancing tendency
In prices. but they were willing to 70
ea record with the prediction that even
. strike Of such siss would not change
he course OF market vAlues so far ~
bSOs AhsiIisN teuOosCy We
They asserted. moreover. that in their
opinion stocks were on the WY 70 dis
count . period Of business expansion in
cident to another year. at least. Of the
European Wal. n that In their consid.
erations they had in mind an additional
bullish argument in their belief Of .
Republican victory In November. As TO
the high prices for grain and cotton.
which are based on indications Of much
smaller Anal harvests than reported last
year. they insisted they could not be
because Of the surplus Of such staple
products from the 1915 Yields and the
increased profts this years crops would
give the agricultural community.
According &c the well founded ideal
Of Wall Street optimists the outlook fol
holders Of stocks II most encouraging
This cheerful view. nevertheless. doe
not AFFORD a license for unbridled spec.
ulation IN the STOCK Exchange and out
side markets. although II naturally suE
6ests that cautious ventures for higher
prices appear promising n that con
ditions are favorable for the investment
OF idle money In the many attractive -
curities nat nay be had at quotation
which do not fully measure their In
trinsic value.
In most Of the commission houses tn,
Nee was put forth yesterday that cur
rent reactions were merely incident
Of q bull market. Some theories mai
b run TO . test tomorrow a. . con
sequence Of the latest Developments II
the railroad labor dispute.
In the greater number OF instances
excluding some Of the newer industria
Aotations, the earning power Of com
pAnies 10 fortified by increased property
values. Herein lies one Of the big rea
0ons Why sound securities are not par
tfculAriy sensitive to advstse devel
opments and why Investment money !
moving more freely n seasoned issues
A conservative banker said yssterda!
that big earnings and greater propert!
values provided him with all the bullisl
ammunition he desired In discussing tn
American investment feid. and that n
believed conditions In this country wou''
90 shape themselves along the bas's o
business and financial preparedness tina
even with the readjus. ments that mus
follow the end OF the war our solid In
yeetment Issues would retain the adde'
actual worth which has come with tn
economic changes OF the last sighteel
months.
Returns Of the Clearing House ins'i
tutions, a. reflected In the combines
statement for the week Just closed
sowed no significant change from a wee
ago. Excess reserve decreased a it'll
more than 49, 0 900, aggregate reserv
increased q little more h a SS.b0o.00
and loans increased el1.lSo.o00.