The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-05
FINANCIAL NEWS
AND COMMENT
Reports Of Critical Stage in
Lusitania Controversy
Weaken Stocks.
ACTIVE SELLING DAY

sharp decline swept through the stock
market yesterday In a session of trading
on approximately a million share scale,
the aggregate OF transactions being
abou, the same as last Monday. II was
evinced in the extent of reaction and the
weakness of the market that the rally
from Mondays low level had not been
ga FRIED along 10y a very substantial
quality of buying. Al the same time
IL was not manifested In any way that
the market experienced more than an
exaggerated reaction from tie extreme
the days price movement.
This Was the Widespread direction of
Il isCunCCrted attention to the apparent
gravity OF the critical stage reached in
the diplomatic controversy with Ger
many over the sinking of the Iusitania.
There were a good many unknown
quantities in the news bearing on the
nature Of the German answer TO Wash
iueton's latest statement OF It's position,
but domestic aud foreign reports had IL
that tn" controversy had reached a point
difficult Of compromise. which wa'
~ taAA' ~ wv 80 AHA' $50
trict to mean "A possible breach Of diplo-
matte relations. The uneasiness with
which the Presidents addresses on the
necessity of preparedness were received
at tho outset Of the week was revived
and note was taken of the fact that
slumps had been reported during the last
few days as having occurred on the Ger.
man stock exchanges in anticipation OF
q ierman-Anerican crisis.
Under the circumstance IL could bs
said ~ the stock market therefore that
In" weakness displayed was not as pro-
uounced as might have been expected
To "A degree no doubt this was the re
suit of the recent readjustmci4t OF tech
Meal conditions In the market which per
mitted the exhibition OF a good deal al
underlying resistance to "A selling pres
sure. Also the stock Exchange con'
muultN. while recognizing that the mar
kct might have ahead uf II "A disturbed
interval ON accourt of the intcrnations
situation. was sccptical OF any opel
break between Germany n the United
states.
There were ind cations az the begin
ming of the day Of operations INTENDED
to stimulate speculative strength au'
throughout the session "A few promlncn
speculative speclalties were remarkably
S'l'll-' vi NV V'b't Wv NV nv lH'
tendency OF trading would have beet
of a reactiouary character, following tn
extent of the midweek resDvery. an,
these ~reactiouary tendencies were un
p~ucs'iuuably aggravated by the unset
4 Element of sentiment which the diploma
tie news caused.
There Was persistent selling from TIN
opening. which was AT first taken fairl!
! well, apparently OF a theory that pro
frssioual bcarish operations were re
/ ,roasjblr for It. When the selling cam,
:" he looked upon As liquidation pro
vukel 10y the diplomatic crisis Absorb
i've capacity promptly diminished
! Early in the Afternoon there Was
partial response To- Il vigorous hiddiui
Gp OF tru,Iblc Steel accompanied u,
- circulation Of ruuorS that the dit
iiCulty with Germany was not 90 scri
ously regarded at Washington. but sucl
! 'ip'urns as occurred in most stocks wer
only temporary. truciblc Steel held II
advance with conspicuous frmress an,
bistill"rs Securities rorc ssgrcssivcly II
'I' late trading, but :he narke, as
N."ic f,ll away again and the clos
was generally heavy. The I~nteruat.pua
.ssu"s. including standard industrial
participated in ia" afternoon rally il
q half hearted fashion only and wrt,
about liz" !~eayi,et features of tine list
II wn' observed. hoNevcr. tina; IT,
last hour selling was less persisted
man IN mo forenoon and prices SCENE,
ia suffer more because OF IT,, decr.d.
II demand resulting from reluctance I
u'y !uto tho uncertain situation create,
10y the vague and indefinite iuTormatlo
about the status Of the Lus.tania case.