The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-21
FINANCIAL NEWS
AND COMMENT
sharp Break in the stock Mar
ket, With War Shares
Leading.
PEACE TALK THE EXCUSE

A successful speculative foray' against
prices inaugurated toward the end OF
last week was indicated in yesterdays
stock market. Al least II was difficult to
place any more serious construction on
the abrupt violence OF the decline which
was generally precipitated throughout
the list. Some OF the more conspicuous
val munition shares led with breaks OF
8 to 7 points. but the downward move
ment wa not discriminating. II carried
rails arisstandar industrials along with
1t. although a good deal Of stubborn
underlying resistance to pressure was
offered by the less speculative descrip-
tions. The close was avery active for
the moet part at the lowest levels OF the
day. and total transactions constituted q
large volume OF business.
Talk of early peace in the European
war was the wall Street explanation.
commonly avowed md accepted. for the
reversal of the market from the mani
fcstations OF a week ago. There were
numerous signs that the idea OF the
inarrial and business disiocatiois likely
10 be involved In the termination OF the
conflict abroad was being cyp'oitcd ag-
Excessively W lluu'' ''"'
liauidation. presumably the objective OF
professional operations for the decline.
What WAS demonstrated was the fact
THAT last weeks excited rise and expan-
sion OF dealings had put stocks IN a yer!
unsound and insecure position. ana the
session seemed to prove more than any
thing else that the technical position
was about equally responsible for the
extreme OF recent recovery and for the
,aJ aAS nrttN nf tho Rt,rHCst-
ing reaction.
IL was infcren,iai also that Stock Ex-
change activities lately have hardly
represented the engagements or impor-
,ant financial interests. Other"isc u ~
no, likely tina. the Wall Street share list
would have offered so much contrast with
other markets we're peace possibilities
seriously under consideration.
SO FAR as the effects Of peace are
concerned there Is no particular reason
tor apprehension that II can be as
? sstrous to our prosperity. II Will IN
yolye establishments. but II stocks had
no, been placed In a very shaky posi-
ton Wall street would have b'ch apt
10 nay some attention To- scnlethinI else
than rumor and conjecture In consider
ing the readjustments OF peace. There
was an early circulation Of admonition
20 observe peace predictions. The re-
marks attributed to the French Finance
Minister ON SATURDAY about the end OF
the war coming into sight were empha-
q. sized anew. although II Is "A fair guess
tina, NJ. Rho. referred rather to the
manner In which the war would end
than TO the time Of It's conclusion.
Early in the afternoon a despatch from
Galveston to the effect that london was
,ancelline chip charters received much
credulous notice. the Stock Exchange
readily assuming that Galveston would
get information before New York about
"A distinct change In the posture OF the
War.
other forces and influences may have
been at work In the stock market rela.
tive To impending events. but this is
only surmise. With respcr, 10 peace
prospects It may be noted that on any
isy wien the Stock Exchange has i
valid reason FOR ANTICIPATING tho end o'
The war similar anticipation should he
strikiuglv expressed IN other directions
.AHglo-Frsnch bonds should have q
tendency to display greater strength
something more than the increased Arm
ness Yesterday. which reflected "A spcru'
I lative process Of hedging against peace
la the fore gn exchange market II nich
reasonably be expected that sterling bills
Nould rise Sharply instead Of merely
. hHif war; h''' '''''' |N' $500
decline 10 a new lOH level, as was III,
case yesterday. War news hould have
a different aspect, and there should h'
less evidence in the metal n othc,
markets of the k.nd Of buying demand
which has been associated with the
covering Of contracts fpr war munitions
We should hardly hear oc the requisi
,ioniug Of passenger steamships t.
carry freight, and ocean freight rates an'
marine insurance rates should show
some signs OF weakening. Wheat ros'
Yesterday. whereas under the circuu'
stances which Wal! street was Discus
sing II should have broken. and cottor
was nothing like as strong as IL shoulc
have been.
The ending Of the war will he q
matter Of .reat momen, when IL conles
II Is doubtful II Wall Street has yet
had any occasion for haste in discount
ing II.