The sun., 1916-05-02
FINANCIAL NEWS
And COMMENT
Stocks Recovery Continues
Despite Heavy Profit
Taking Sales.
TRADING AT ACTIVE RATE

Speculative cheerfulness with a trace
Of somewhat more important optimism
was exhibited in yesterdays stock mar
ket. which provided rather striking
demonstration OF strength since II was
little more than n week ago that
Wall Street was most gloomily engaged
In selling the list heavily for further
action. Perhaps. accordingly tho ex-
tremc vgor with which the recovery Of
the past week was carried further was
too emphatic to be altogether convinc-
ing. However. the adverse contingen.
cies in all the fields OF politics are very
largely Offset by the brillancy Of the
trade and industrial situation and the
banking position. The encouragements
which offer for a display of stock market
confidence In values are entitled TO an
occasional expression. and II the opening
stock market of tho new week does not
turn out to have had positive signif-
cance for the immediate course Of quoted
values. II was at least a substantIa Ial
addition of proof that selling not so
long ago had been much overdone.
Dealings came within reaching dis
tance OF million share session and the
net result Of the trading was "a large
average OF further gain in prices. In
View Of the fac, that only week ago
last Monday morning stocks were OBJ
tainable at about the lowest level OF
tho year so far. the rise, which at yes.
terday's maximum figures ranged from
five to twenty points throughout the
long active list, struck some observers
As obviously rapid. Whether or not the
pace was much too swift remains to be
seen.
An adjustment Of controversy Win
Germany. X not q settlement Of the
Issues in dispute. 10 still IN abeyance.
German efforts to avoid . breach Of
relations with the United States are
not necessarily tantamount TO . satis-
factory response to tho Washington de-
mands, although a disposition TO draw
favorable inferences was promoted yes
terday By Or Dernburgs brief in behalf
OF other considerations in diplomacy
than military necessity defined BY a
junker general stan. Mexican affairs
remained dubious to say the least. but
Wall Street has never been overanxious
about them. AS for the May Day pic
ture OF labor disturbance. tho financial
district regards labor conditions a. In
Il way token OF the endurable dim.
cul,ies which accompany period OF
highly profitable business activity.
There was heavy profit taking in all
departments OF tho stock market
throughout the session. Despite this and
despite the speed of the upward move.
ment OF prices a good deal or absorp-
tive capacity was displayed and there
was relatively little setback before the
close. which. while somewhat irregular.
was generally strong. Foreign selling
was apparent in United States Steel and
other standard industrials. but sales OF
all kinds from any source were readily
taken.
The Mercantile Marine shares were
ayair prominent features of the rise, sell
ing at new high prices, and the Maxwell
Motors stocks advertised the speculative
attraction OF the industrial special:!es
The short interest was rather severely
punished In some of the war munitior
shares. ard toward the end OF the day
railroad stocks began TO make fresh
display Of strength under the Leadership
Of Reading and I.ehigh Valley. The agree.
ment reached with tine coal miners was
the oby ious argument for the outburst o,
buying in the anthracite issues. although
I. was not clear why reflection waited
ur'll the last hour. Signs OF buying 70,
public account were dscernible In varl
Gus directions. a symptom which matched
the speculative aspec, OF the cotton mar
ket
\ series OF highly gratifying railroad
statements for March was an Influential
item in the days news budget. The eX
;raordinary increase Of profitable earn
!ngs by the carriers in recent months wa.
we'll illustrated by the returns OF the
Pennsylvania ami New York Central sys
TENS for March and for the first quarter
.. the year. The increase OF the Inter
national Nickel dividend from ) pc,
cent. to 8 per cent for the quarter va.
further testimony 10 the persistence OF
industrial prosDCrity.