The sun., 1916-01-10
FINANCIAL REVIEW
OF THE PAST WEEK
January Stock Market Prompt
ly Subjected to Tests Of
Position.
CONFLICT OF INFLUENCES

general business and the excellent situa-
placed have been attcsted in the under
lying stability which the share list has
displayed. Nevertheless the expectations
Of a rising market in January. which
were rather generally entertained and
were accordingly regarded somewhat
been promptly rewarded. ON the con-
trary. the general run of stocks. whether
Of standard or special descriptions. have
been more or less unsettled, and advance
Ing tendencies have been availed Of to
increase selling pressure. which has at
times ove-taxed the absorptive capacity
developed by rising movements.
There Is nothing very puzZing In this.
The stock market could show good
deal more weakness than II has exhib-
tied without prejudice to the long range
prospect for the eventual establishment
OF a higher level OF quoted values this
year. Indeed. the share list might be
benefited materially IL reactionary proc
csses should correct TO any considera bile
extent the somewhat impaired technical
position In which II was carried over the
end OF 1915. The same might be said OF
the trade and industrial boom which
was projected into the new year. for
the technical conditions of business are
apt to be weakened II booming progress
continues without recupcrative lulls.
The outlook fo- both business and
finance Is encouraging enough to inspire
more energetic constructive activities IL
a temporary slowing down demonstrates
that the basis of activity is firm and
substantial II an expansion OF volumes
and values cannot stand such "A test the
sooner the fact is ascertained the bet
ter. and from the point of view of the
investor the stock market sums up a
situation which would make recessons
In quoted values welcome as providing
/ an opportunity for an increase OF COM
/ mitments on the constructive side OF the
ledger. When this is the case specula-
! two endeavor is hardly likely to he APP
! prehensive Of distress. even though the
speculative account In stocks has
! seemed to call for some rcadJustmcnt.
When the 1915 stock market chronicle
! began Wall street had disappointing
news 10 deal with in respect TO the fresh
disasters OF maritime warfare in the
| Mediterranean. These revived acute un-
easincss about tho diplomatic problems
lately thrust on Washington's attention.
but the International questions in this
category are only part of the obsta cles
to unchecked continuation of the eX-
II is true that the month ~ January
! was approached with "A lively Wall
Street hopefulness that II would be from
! the beginning month of aggressive
speculation TO- the rise. Sentiment was
optimistic enough to conducc to II. and
the current facts Of commerce and
finance furnished the groundwork for II.
ON the other hand experience suggested
that some tncIpent disappointment might
> y
expectation. January traditions were
somewhat against this state Of eN-
pectancy and apart from that there were
various matters which suggested that
/ the expansive strength of our economic
conditions nigh, not all at once express
/ themselves stock markctwisc. " all
events the share list from the first OF the
| week displayed market surface sensitive
ness to factors actually or conjecturally
adverse and II took decline. In numerous
I instances quite sharp, to demonstrate the
underlying strength Of quoted values
Professional trading efforts were
swiftly concentrated in operations for
b the fall and were assisted by tho leverage
II an increase OF real LIQUIDATION. the
principal source OF the offerings being
Great Britain. although there was OBJ
vously Continental selling, Such rcaliz-
ing affected only the Internal ional list
hut long catalogue of spccialties
which had enjoyed speculative promi-
nencc In recent months was under pres
sure of domestic liquidation. II is Satis-
factory. therefore, to note that absorptive
capacity appeared to increase materially
and rapidly on relatively moderate price
declines, but the market was inconven-
fenced by shifting OF commitments.
Seasonal influences have unquestion-
ably to be reckoned with at this time.
| January stock markets are very rarely
| anticipative OF the twelvemonth which
| has been entered upon. They are more
| customarily reflections of the year which
has just ended. II II was n bad year
"A depressing aftermath Is likely TO he
the result In the early months OF the
| new year. If II was year OF profit
| able enterprise. holding out encourage
ment for the future. quoted values in
/ January will usually reflect the fact.
but the process OF discounting the new
| year itself would not ordinarily start at
! the outset Of the year. Sooner or later
| the normal winter slackening OF the
general business pace corresponds with
| stock market halt. and It Is not until the
advent OF spring that forward actlvi-
| ties can be conducted along lines Of
such probability as must determine the
mass Of business and banking action.
| IL this is so In most normal years II
| might more readily he the case In the
year OF Presidential election. when
| abnormal foreign forces have to he con-
| sidered IN business calculations.
A reason for such sensitiveness to
selling az the stock market has dis
played in the last few days Is found
in the somewhat congested state OF
, the Wall Street speculative account
| open for the rise, particularly In the
war munition shares There has been
good deal of recognition Of the fact