The sun., 1916-02-03
FTNANCTALN NEWS
AND COMMENT
stocks Rally Sti1l Further in
a Broader Buying
Movement.
SCARCITY OF OFFERINGS

ried legitimately further yesterday WIN
n good deal Of breadth characterising the
buying movement. although specialtics
were most prominent In the rise. AZ the
close the list ranged at about tho best
prices Of the session and measured
very substantial rally from the extreme
of decline reached on Monday. Indeed.
many stocks ruled NJ better figures than
for several weeks past Trading as
the day progressed developed greater
activity. and various aspects Of the mar
ket. together with the more pronounced
display OF strength. indicated that there
! had been a very material Improvement
in the technical position as result OF
the liGuidatins processes which were
conducted in January.
The additional rally started under pro-
| fessional auspices. but gained support
| from commission houses in the course
| Of the day and seemed to have even
/ more important encouragement as the
trading disclosed not only sold out but
a more oversold condition than was ap-
parent on Tuesday. Rising prices did
not attract SELLERS. but buyers. and II
was this feature which inspired a shift
Of professional operations to the buying
side. Throughout the greater part OF
I the forenoon the dealings were utterly
without snap or vigor. and the trading
| element WAS disposed to undertake bear
ish experiments but when they found
that they were lowering prices without
, other than their own selling they re-
yersed their position. and toward the
: end Of the day some energetic compeo-
ton among purchasers implied covering
! OF bearlsh commitments rather more ex-
tensiye than had been obviously left
| open.
The forenoon hack OF buyers. except
at concessions. was not OF as much con-
sequence as the absence of pressure on
the market The strength ultimately de-
vrloped was owing primarily To scar
city OF stocks which was emphasized
in the afternoon when there was a
marked increase in the demand. Not
even on the late advance was there a
conspicuous enlargement OF offerings
War stocks asserted leadership, show
ing that speculative interest is tar from
apathetic under circumstances defining
market situation which might permit
quoted values to reflect the hghl!
profitable activities Of special lines OF
trade and industry. Related descrip'
,ious, such As the shares in the motoi
group and the copper metal stocks
moved forward strongly. particularly II
the afternoon and there Was hette'
turn of strength IN the steel and fror
issues. More details OF the latest mer
ger OF steel making corporations were
interpreted as evidence or the construc
tive disposition OF important interests
hut In any event the state OF the meta
trades would furnish explanation enough
Of any tendency TO the recovery %
'r,rcucth displayed by steel, iron ami cop
uar stocks There has been no real diin
mutton Of the absorption OF the prin
,ipdl metals and rising prices were re
rorted yesterday for steel products dn'
Tor copper
Railroad stocks participated In M
r,utinuation Of tho rally despite I'M
'tit,lculties ot the railroad labor question
and II was argued on behalf OF railroa'
issues that current phenomenal earning
discounted good deal OF trouble .
many sorts. Also Wall street was les
inclined to be apprehensive OF the pres
sure OF foreign liquidation on the rail
road list. especially as various rnmor
were IN circulation TO the effect that IN
American securities, which tho Brtisl
Government has been inobilizng, woul'
in all probability figure to a large eNten
!u collateral loans negotiated direct.
or indirectly with banking interests here
Announcement that Mr.. Morgan Va
making a trip to Europe provoked con
/ lectures Of favorable financial ana ble!
ness bearing 20 which speculative Wal
street was inclined tn attribute the bette
acton Of the share list. Reports tina
the Iusitanla controversy with Ger
many was in the way OF an early settle
mcnt were similarly put forth in specula
tive interpretations OF I've prosecution q
the rally IN stocks. The fact. however
seemed to he that the share list va
simply responding 20 the degree OF re
I,af from congestion of commitment
which has been afforded lately
There was a fairly positive convicto
! in the financial district that some ne'
, arrangements OF an international iinar
cia nature were pending. one Of thei
b,iug 4 French loan, presumably in th
form Of credits granted by bankers
The weakness Of French exchange in
piled that something of the sort woul
soon he required