New-York tribune., 1916-07-27
Failure of Stock Prices
to Advance on News
Disappoints.
STEEL SHOWING is
WITHOUT INFLUENCE
Steel Common Closes Practically
Unchanged-Other Issues
Move Sluggishly.

Action Of the market yesterday
demonstrated TO the disappointment of
the speculative element how utterly
unresponsive stocks have become to
favorable news. Wall Street had con-
fidently expected a sharp rise in the
general price level as a result Of the
splendid quarterly statement Of the
Steel Corporation and the declaration
of the extra dividend. But the stock
market did the unexpected, and after
a moderate display of firmnesS at the
opening, relapsed into dulness and de-
cline.
Prices did not go down far, to be
sure. but this afforded small comfort
to the rank and file, who had looked
for the beginning of better things.
Continuance of the apathetic condi-
tions that have prevailed for a month
or so, despite the character Of the
Steel earnings, the extra Steel dlvi-
dend, the declaration of extra divl"
dends by several industrial corpora
tions Yesterday and the news of fresh
British and Russian successes in the
theatre Of war, raises the question
whether the bull campaign in Wall
Street has really come to an end and
suggests that the market is now ad-
justing itself TO changed conditions
regardless of day TO day news devel-
opments.
The more the earning statement OF
the Steel Corporation is considered the
more wonderful becomes the showing.
As matters now stand the corporation
will have by early autumn approx
mately $200000,000 Of cash in its
treasury. And the prospects are bright
for another excellent earning state
ment for the current quarter, and again
in the last quarter Of the year. Steel
common displayed strength at the open
ing and sold on a spread OF 15.OO0
shares up to 81, but pressure Of offer
ings sent the price down again, with
close to only Il above the day before.
The rest of the market, affected by the
failure of Steel to respond to the good
news, moved sluggishly, and the major
ity OF issues closed with net losses.
Wall Street was plainly puzzled, as
we'll as disappointed, by the action OF
the market. Various explanations were
advanced, including the railway labor
situation and the possibility OF an
early peace in Europe. Close observ-
ers of security market conditions in
sist, however, that the real reason for
the stagnation is to be found in the i'm
mense volume of new issues that have
come into the market and must be dl-
gested and absorbed. With these new
offerings have come upward Of Sl,O00,-
600 900 of American securities sold
back to US by Europe to finance the
war, with the prospect Of more from
this quarter.
A number of important industrial
concerns reflected the general prosper
itv by dividing profits with stockhold-
ers in the form of extra dividends.
Directors Of the Pressed Steel Car
Company resumed payment Of divi-
donds. while the American Brass Com
pany announced an extra disbursement
of 31z per cent. The weekly reviews
of the iron and steel industry, in ad-
dition TO emphasizing the astonishing
statement of the Steel Corporation as
what the market has shown
lately of the exceptional position OF
the producers, took note of further
heavy buying for export and new
batch Of war orders. Iron and steel
prices are reported as holding well,
Bonds were somewhat more active
Yesterday, owing to the heavy deal
ings in the notes of the American For
eign Securities Corporation, the con-
Germ which handled the S1OO,0oo,Ooo
French government loan. In all about
81. 100000 of these securities changed
hands. Money rates showed very, little
change. The feature Of the exchange
market was the weakness Of marks,
which dropped to within fraction OF
the record low level.