The sun., 1916-08-20
FINANCIAL NEWS
AND COMMENT
Wall Street Optimistic in
Spite Of Critical Railroad
Labor Situation.
TRADING VOLUME SMALL
Bankers See No Danger Of In
dustrial Depression or I'm
favorable Factors.
TRADING VOLUME SMALL

notwithstanding the critical railroad
labor situation and Indications that tho
railroad presidents would not change their
attitude on the eight hour day. Wall
Street was in n cheerful frame OF mind
yesterday, although II did little In tho
stock market. II was n market In which
the limited business reelected chiefly the
operations OF the professional element.
Efforts we're not made TO bring about
activity In any part Of the list. either for
Wong or short account. and in conse-
Quence the movement OF prices. after un-
important opening losses. presented no
tendency in either direction. except in The
case Of a few Of the specialties. which
were governed by considerations with q
special bearing upon the companies rep
resented. A reflection Of this was seen
In Pacific Mall shares. which moved UP
rapidly upon the announcement OF the
resumption by the company OF steam
ship service with Oriental points.
Although the financial district refused
20 change It's belief in the theory that
there will be no strike. It adopted, never
theless, IN extremely cautious attitude
toward operations in securities. and the
public followed suit. There practically
was no buying for outside account.
Brokers. however. said they had buying
orders on their books to be executed lat
the market In the event of a settlement
Of the railroad labor controversy. while
In addition they had buying orders to be
put out On n scale dow in the event Of
. strike accompanied by stock market
liquidation.
Apparently many people have formu-
lated the view that II there should be q
strike the very magnitude Of the conse-
Quences involved would bring II to q
speedy end and that any nan who buys
etocks now will win. strike or no strike.
II they are proceeding on the basis Of
precedent the argument 10 II Big
profits never have been made by selling
the market short on labor troubles.
The stock market Is favored by q long
list OF extraordinarily good arguments.
Eliminate the railroad labor situation
and conditions are revealed which should
make the chronic crouch optimistic.
A pessimist wrote last week THE
gradual upward movement OF prices has
made further progress without anything
substantial to help 1t along" As a mat
tor OF fact the history OF the stock mar.
ket fails to disclose any other time when
there have been so many substantial fac
tors making for expansion In financial
values as there are reported to-day. 1t
II unnecessary to enumcrate them. for
they are now patent even to the infant
class. The stock market appears to be
we'll prepared to meet the shock Of pass
ing unfavorable Developments.
Bankers assert that only passing unfa-
vorable factors are possible that recur-
rent industrial depression 10 q far way
oR.
In respect Of the ratio Of reserve above
legal requirements yesterdays weekly
Clearing House statement made the best
showing reported by the associated
banks since February. last. There was
. large expansion both In the aggregate
and excess reserve. the latter moving
e2+.506.0S0 above the figures OF n week
ago, while loans decreased STA. ISL 900
and net demand deposits increased sls,-
o$7 900. Money practically il a drug
on the market at the moment, and al
though fall time tendencies may be In
the direction of flrmer loan quotations
no maintained important advance Is
looked for. AS one broker put IL YES
terday. autumn stringency incident to
the gathering and marketing Of the
crops is now n Wall Street tradition.
England is spending here $50. 900, 900
borrowed from Japan and $3.50. 900 900
borrowed in this country. while France
IL recheck!ng 10 us the 800. OO0. 900 re-
Gently borrowed here. and Russia $50
100000. We are making big loans TO
foreign Governments. which are using
the proceeds for the purchase OF our
goods. And then we are importing gold
in vast amount. Naturally none will
remain In a comfortable position.