The sun., 1916-10-19
FINANCIAL NEWS
AND COMMENT
Higher Levels in Stock Market
Kill Predictions Of Old
Time Traders.
DEMAND LOANS CALLED
Prices Of Securities Not At
. fected by Actions Of
the Bankers.

Traders In stocks who have been look.
ing for materially lower levels on the
old theory that an advance Immediately
following a sharp break In prices should
be succeeded by a secondary decline find
little encouragement in the course OF
market values for their argument. The
present market has a persistent habit OF
d~isregarding precedents.
A decline was scheduled for Tuesdays
market. according to the Ideas OF cer-
ain spectators. and again yesterday
prices should have declined. II they were
TO act along old time lines. but on both
days the general average OF quotations
showed Improvement. with many sharp
advances recorded. Current prices may
be Influenced temporarily by passing fac
tors. but their ultimate trend must be
gagged by earnings and money. which
continue to suggest that forward move
ments have not yet run their course.
Floor traders in the Stock Exchange,
as a rule. were bearish. but they were
unwilling to put their convictions to the
test beyond quick turns. In many In
stances they moved against their con-
v~ictions not only by covering short con
tracts, but by taking on long lines OF
issues In which pool operations were
known to be under way. as. for instance.
In the paper stocks. steel issues and
United States Industrial Alcohol, tn.
last named moving to a net gain o.
Is points. Floor traders continued &c
talk pesslmlstically over the chances OF
Republican victory In November. bu,
their apparent uneasiness failed to at
tract much interest on the outside.
The public was not al aggressive
buyer. blu Il took. nevertheless, n fair
amount of stocks. And various srecu-
lative groups were active in bidding
prices higher. while rather substantial
houses were reported as buyers OF high
class railroad shares. such as linton
Pacific, Reading and New York Central
New York Central directors will pu,
out some new stock. rather than meet
Ing certain needs through the medium,
Of the bond market. and later they will
increase the dividend on the stock. prob
ably to a 6 per cent. basis. perhaps early
In the new year. II the predictions heard
In banking quarters prove themselves
Certain railroads wal be justified II
paying more to their stockholders. but
as recently pointed out In this column. a
general enlargement OF dividends by the
railroad companies is not looked for In
conservative circles.
Stocks are moving along the line OF
leas: resistance, which Is based upon
wholly natural conditions. Conditions
may be abnormal. but they are the
product OF extraordinary times and
therefore natural to the lines.
a similar situation prevails In the
commodity markets. 4 strong reflection
OF the latter was found yesterday In the
upward movement In cotton and grain
: cotton selling I'm 81 a bale. with Whea,
moving to the best level recorded in tn,
war period. Export buying both in co..
ton and grain is heavy and domestic
consumption is large, while short crop.
resulted In both instances.
Demand loans were called yesterday
and the day before to an extent that at
tracted attention without exert!nG al
adverse effect pon securities prices, thu
movement being due TO the fact tina
funds had worked somewhat closer
There has been no reduction in tn
amount OF money In the country. but IN,
supply Is more widely distributed tina!
recently reported. chiefly through inter
district clearings Of the Federal reserv,
banks and in part through direct ship
ments from local banks TO interior points
The actual supply IS increasing through
the resumption OF the gold impor: move
ment. which has brought more than $40,
900. 900 to New York in the last tw,
days. :
There Is so much money in the coun
try and the demand for new investmen
issues is so argent that greater supple
of securities may be looked for. with an
other large loan to Great Britain al
ready in view. External secured Joan
ing extremely popular with American in
yestors.