The sun., 1916-08-22
FINANCIAL NEWS
And COMMENT
Led by Steel, Which Reaches
Record Price Of 05, Impor-
tant Stocks Climb.
READING SHOWS ACTIVITY
Indications Of Bigger Bull
Market, With Increase of
Public Buying.

Market followers seeking for specin,
Information regarding the reason for Tho
strength In yesterdays prices In IN,
Stock Exchange we're enlightened by 9
trader who said that the "strong arm
neT were at work. In other words
the big financial interests were com
mitted to higher financial values. ant
through the leverage of their our
backed by their confidence in a long pc
r'od Of activity In the country's indus
tries. they were helping stocks to NOV,
In a direction representing the strength
Of basic conditions and measuring NOR,
fully the intrinsic worth Of investments
From the very start Of the session tn,
market had all the characteristics ~
substantial Wall Street support and i'm
proved public buying. And II had also
al the symptoms Of running into q
bigger hull affair.
When United States Steel common
advances more Than 3 points In one da,
II Is quite reasonable TO 60 home salts.
ned that something out Of the ordinar,
II developing In the market. Steel no,
only van more than 3 points but
It s'ld at the beet price ever recorded
with the last sale $500 shares at 50
a. against h preceding high record
s%E. made In 1909. when the issue was
not nearly NO valuable as IL IL to-day.
There was no development Of "a strik.
lngly new nature affecting the United
states Steel Corporation and the stee1
companie In general. The steel share.
moved up primarily because ~ the ex.
traordinary position OF the steel trade
and not because Of stock market manip.
.ulation. doubtless operators who were
caught short Of the stock thought
along lines so omnon when prices &c
against one-that manipulation by in.
siders Is taking its TOLL Insiders were
not compelled to exercise any specula
tive strategy TO bring about AL advance
In Steel. for 1t moved along a course
where there could be no effective re.
istanc particularly as a large shor;
interest had been accommodating for days
In the Issue.
Operations In Steel were the feature
OF the day. and II would appear from
the course OF the issue at the close ,hat
barring some overnight depressing de.
Nel)pment. II Will make further progress
early to-day. Statements heard In the
Street that the big men were distributing
large blocks Of the stock taken over
from foreign holders may have had q
basis In fact. but II this Was so tbs
distribution was not made because tine
issue was not highly though; Il. bu,
because banking int. rests bough, from,
Foreigners with the expectation o. put
ting The stock out at higher prices.
And tile people who bought yesterday
did MOI get n security Il little value
The Steel Corporation in the last quar-.
ter earned at the nnual rate OF almos,
20 per cent. OH It's common shares. upon
which II Is now paying :, per cent I.
year. with an extra dividend payabl,
In September. There Is no reason why
the stick should not move up.
Financial interests exhibited no un.
easincss over the outcome OF the rail-
road labor situation. Indeed. the course
OF the stock market and the talk heard
In banking p~arlors suggested tina, plans
were beins evolved which would make
a general t!eup OF the railroads improb.
able. The financial emf Of the railroad
business In this country IL - great and
general conditions are so favorable to
big financial undertakings that 4; Is no,
conceivable n way will not he found gu,
VI a labor controversy which. II al
lowed to run into a widespread strike
would paral.ze rail transportation as
well as other industries.
Although Steel attracted the chief at.
tention O. the Street, Il was not the only
point OF interest. Reading on heavy
trading moved to a new high on the
current movement. Other steel stocks
we're strong the equipment shares made
striking advances. also the Mercantile
Marines. while the general rail list I'M
proved in TIE late dealings. Offerings
on realizing were well absorbed. and
In spite Of occasional efforts by traders
to weaken prices. fractional reccssions,
as n rule. we're about the only result.
with the greater number OF prominent
issues closing neav the top.
Under the stimulus of pcssImist!c
crop advlces wheat and cotton advanced,
The stock market. however. was not dis.
posed to pay much. II any. attention 10
such factors. ~ the Street argued that
q deficiency In this years yield o! farm
pr ducts would be offset by the surplus
from last year and by higher prices
for the various staples.