The sun., 1916-12-10
FINANCIAL NEWS
AND COMMENT
Bears Large Talkfcst Brings
No Important Offerings
From the Public.
MARKET NOW STRONGER
Bank Statement and Steel Re.
port Expected to Influence
TO-mOrrOw's Prices.

Considerations OF what might happen
IN the event Of various theories devel-
oping into actual factors were effective
in attracting professional pressure
against values in yesterdays brief ses-
sion in the stock Exchange. The move
ment was helped by end OF tho week
realizing. but II failed TO bring out i'm
portant offerings from the public, which.
indeed. was a buyer on the decline, while
it failed also TO change tire attitude Of
the substantial Wall Street interests to-
ward the market. The big" men Of the
Street are not interested in passing de-
clines In prices. but the sold out bulls
are. and they are exerting themselves
with their limited bearish arguments to
bring about n more attractive buying
level for the general list.
Operators for the decline put out for
public consumption the suggestion that
they were apprehensive over the outlook
abroad In Its relation to the American
markets.. but they could foresee the de-
velopment Of a change In the position
Of domestic copper from the further
action Of the British Government In
strengthening its control OF the market
In Great Britain and they were able
TO figure upon an approaching collapse
in our own economic strength.
The bears had a talkfest which was
not based upon the logic OF the situa-
ton. They even went to the extent OF
| predicting n poor showing in the weekly
hank statement. AS a matter OF fact
the exhibit. which was published after
the close Of business, showed n heavy
Increase in the combined excess reserve
OF the Clearing House institutions.
None OF the ideas put forth by tie
spectators for lower prices carr ed
weight with the strong outside public.
which merely strengthened its margins.
except In cases where II decided to con-
vert parer profits into cash on the theory
that to-morrow's opening prices might
AFFORD opportunities to recover stocks at
| cheaper levels. There WAS no indica-
ton that the outsiders had intention
| OF retiring from the market for a definite
period and no development in the days
news that the position OF affairs in the
United States warranted the assumption
that any change was impending justify
ing a long sustained decline In stock
market values.
Reports from the commercial agencies
for the week presented every evidence
Of continued business growth and moth.
ing upon which could be based a bear
ish construction of future market move
ments. either in trade or finance.
Declines yesterday and the readjust.
ment in loans which has been under way
| throughout the last five days have placed
the stock market in n stronger position
than could be reported n week ago. but
Il is possible that the larger interests
will endeavor to restrain ar outburst Of
bullish enthusiasm for a time al least
pethaps until the are ready TO prepare
the market for another foreign secured
loan in this country, a development that
looms large for early In 1871, In view OF
the financial requirements OF the Allies
under another year OF war. which now
appears probable.
There may be less foreign buying In
| the American markets, but 1t is not con-
ceiyable that Great Britain. France and
Russia can handle their own needs with
out further assistance from the United
States. Buying may be less because OF
the closing of our doors to extension OF
credit on foreign treasury bills. but the
| chances are that there will be enough
In the way of new orders to keep our
manufacturers busy even after the pres
ent heavy volume Of work on their books
has been completed.
Both the favorable bank statement
and the record breaking report OF the
United states Steel Corporation on its
untitled tonnage, as OF December 81,
showing a gain Of more han 1000. 900
tons for November, came too late to
figure as stock market influences, but
II was thought the two factors would
carry considerable weight In shaping the
movement Of prices In to-morrow's OPP
erations.
Excess reserve. which a week ago was
at the lowest level since the establish
ment OF the new banking law. increased
upward OF s33. 900. 900. while there was
a heavy contraction in loans and an In
crease In actual cash OF s27.364 400. In
the last two weeks loans have decreased
n little more than $4,000. 900. The
banking situation Is strong.