New-York tribune., 1916-07-03
REVIEW OF THE
WEEK TN FINANCE
Mexican Situation Keeps
the Stock Market in
Nervous State.
BUSINESS TOTAL
MUCH REDUCED
Semi-Annual Settlement Period
Passes Without Much
Effect on Money.

The security markets last week were
again completely under the shadow OF
the uncertainties Of the Mexican situa-
+ ton. Trading in stocks and bonds fell
off quite considerably, and while the
martial accession Of the Carranza gov
ernment 70 this country's demands, IN
the release Of the American troopers
captured In the Carrizal encounter
gave the financial community cause for
hone that the crisis would, like many
others OF recent months pass without
omen bostiities and the declaration OF
war. il was by no means certain at tho
end Of the week that such an outcome
could be relied upon. Il was this feel
ing Of nervousness among the holders
Of securities that, after all, the threat OF
more serious trouble had by no means
been removed that impaired rather
f.v.r;sh tone TO the stock market
While securities did not show any
great net change at the close OF tne
week. the whole situation with regard
N Mexico was so fraught with serious
rossibilities that the conservative ele-
ment in the Street pursued miad'e
course and stood pat.
Two Flurries.
rhara were two good sized move
nents during the course Of the week
A. N. verv outset. on Monday, when
the demands Of the United States were
forwarded to the de facto government
stocks gave way rather sharply, and the
General unsettlement was aggravated
somewhat by the important decision OF
the Federal District Court ordering the
d;ssolution of the Corn Products Re-
fninc Company. the sO-called glucose
inst Liquidation on reduced scaie
continued 10 the middle OF the WeeN'
,rhen the sudden turn IN the MeNlc"n
situation. a development that occurred
unexpectedlv overnight, caused s"lt'
readiustment of stock prices. ne ne IN'u
week furry came a. the opening j. nut
dav. when some Of the more Voiall4e l"-
dustrial issues were forced UP j"
lid hear panic The more seasoned
stocks made fair progress to"aIu y:
coverv. and the whole movement lnol
ca+ed quite clearly that the PERIOD OF
iouidation. extending back over lor1-
NIGHT or so while the Mexican SITUATION
was developing into crisis, haa "pee
narentlv built up short interest OF
large proportions, the sudden turn lot
- better in the news, coming AT
time when little hope renamed tnaI
v,ar could he averted. catching portion
Of this account unprepared SuDse-
ouentlv the Street arrived at q Gamer
and more reasonable view or the sIlu"-
tion and came 90 realization 'hay
great deal vet remained 10 De st1t4C"
before the questions at issue Wo"lG o'
cleared up beyond the possiDlllly OF re-
,.ival There we're few shares, no"
o,.or which retained much Of their new
In acquired strength through 10 the eul
n the week. among them United states
stool common and some of the better
known railway shares. Huge earning
i renorts OF these corporations, holding
ont the promise Of extra and increased
dividends in the fu.ure, contributed
toward strengthening this group. some
of the so-called war stocks, on tAe
other hand. sagged lower and ended
The week at around the low prices OF
the year.
Awaiting the Grand Offensive.
With the ewes of the financial dis
trict turned toward the Mexican bor-
] der less attention was paid 10 the
war news from the other side, al
though the increasing military activity
I Of the Allied forces on the several
fronts suggested that possibly the
Grand offensive so long talked Of had
been begun. This phase OF the situa-
tion In Europe, carrying with II the
knowledge that a successful ehort OF
the combined military forces of the
Allies would unquestionably bring
ouick ending Of the war and all that
that would mean 10 the financial and
commercial markets here, as well as
abroad. was matter Of much com
mont As 10 our own affair on the
southern border, the fact that the
United States might shortly be com
pelled 10 borrow in the bond market
through the fotation of q new issue
of securities to provide money 10
finance its operations Do Mexico IN
the event Of war, held the attention
Of banking and investment interests.
As matters now stand, the Admins.
tration has admitted the necessity OF
an early loan in case war is declared
and hostihties are waged on any large
scale. although il has been taken for
granted that such an alternative
would be delayed just as long as pos
sible. and until after election. # that
could be done. Advices from Wash
inpton at the close Of the week de
clared the Democratic leaders in Con
gress 10 be in agreement on the issue
Of S1OOO0OOOO 10 Sl25,000,O00 70 meet
the Mexican expenses, If the emer-
gency arises.
In the field Of finance and com
merce the week and the closing Of the
half year saw little or no let-up IN
activity Various industrial corpora
tions and. what was perhaps even
more important. some railroad COM
panies. notably the Pennsylvania
company. voted increases in their di-
vision Of profits with their stockhold-
ers. Offering additional evidence, II
that were needed. Of the brilliant
prosperity of the country az large
Several Of the big railway systems.
including such lines as the Union
Pacific Southern Pacific, New York
Central and Pennsylvania, presented
May operating statements that indi-
Gated railroad revenues were being
well maintained at the high levels
established in the closing months OF
. 1915. OF the great expansion of our
foreign trade the governments figures
for May bore eloquent testimony. dis
/ S472. 100000. exceeding the previous
d - hs