The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-04
FINANCIAL news
AND COMMENT
stock Market Shows Strength
Under Test Of Meditcr-
ranean News.
. MILLION SHARE DAY

A now and rather severe test Of the
market position technically and
o otherwise, as we'll as a test Of financial
temper. WAS furnished yesterday In the
resumption Of Stock Exchange dealings
OH the evil news about the fresh atrocities
OF submarine warfare carried on In the
Mediterranean. The upshot Of h scs-
sion WAS a gratifying revelation Of the
fundamental strength Of h conditions
and the stability of sentiment which
have entered into the composition OF
the present level Of quoted values Such
disturbing matters as those which the
financial community is again called On
to reckon with do not OF course make
for a reckless expansion OF constructive
operations, but tho response OF tho
share list to the adverse considerations
supplied over the year n recess
t~estities TO tho basic soundncss OF Out
economic situation and encourages the
view tina despite checks on setbacks
the enhancement Of values will tend TO
progress In the direction Of the trend es-
t,blished in the recent months OF bust
ness recovery and growth Of new enter
prise.
For those who And It difficult to un.
derstand how stocks could offer SO much
resistance to the shock OF disturbing
news in the category Of vents which
has been threatening lately to alter the
country's status of official neutrality
toward the war, 1t sufiices to say that
when some months age his menace
first became distinct and had startling
effects the country had not learned AS II
has learned since last August how strong
in all economic respects 1t was 10 cope
with the hazards of international poll
tics. The financial. industrial. CONNER
cial and agricultural Developments In the
last four months Of 1915 help to explain
the comparative equanimity which Wal
street showed yesterday.
Acute interest bordering on appre
hens!on was nevertheless manifested be
fore tile opening Of the Stock Exchangt
in the sequel to the sinking Of the p
and o.. liner Persia. That the anal
would aggravate controversy with thu
European Central Powers was takeI
for granted and the reports which wer'
received early in the day or tho sink
ing of other steamships In the Medi
t%crranean. including the Glcngyle and
Japanese vessel. intensified the straii
10 which the stock market was sub
jected.
However. a fairly sharp decline at tn
opening did not induce any EXTENSIVE
liquidation. Pressure, on the contrary
was relatively SO light that heavy buy
Ing orders which appeared stimulates
a prompt rally and thereafter the mai
ket exhibited more aspects Of strength
than OF weakness. Indeed weakness
WAS not at all manifest throughout tn
day. An active demand for stocks wa
promoted by the indications OF upwar'
tendency which were discernible and II
some directions aggressive operations 70
for the rise were carried on with substan
tial success. There was liberal realizin!
on advances. but such adequate ABSORB
tive capacity Vas displayed that Onl.
irregular changes resulted at the close
the principal changes being materis
gains.
Miami Copper. on which at the en-
of the day "A dividend was declared a
\ the rate OF s per cent. for the year. com
pared with 4 per cent. in the previous
quarter. rose persistently. American
Smelling sold al the highest price sine
1907. Mexican Petroleum and Califor
MIA Petroleum, the Mercantile Marine
issues, Industrial Alcohol. New Yorl
Air Brake. American Coal Products. Ma
tional Lead and United States Rubbe'
we're advancing features. 81. Paul dis
played more aggressive strength thar
other rails. but the railroad department
and standard industrials exhibited un
DERIVING firmness despite a good dea
OF foreign selling.
Total transactions were In excess Of ,
million shares and the session gave suct
an impression OF strength as TO provok,
the general comment that. but for tn,
disconcerting surprise which was con,
tanned In the news over the recess, ther,
would have been an emphatic continue
ton OF the new forward movement
which obviously got under way in IN,
past fortnight. The action OF the mar
ket was not a sign Of Wall Street failur,
to appreciate the seriou gravity OF tn
International situation. hut rather a re
f~ect!on OF the strength of domestic finan
cial and business conditions and the con
fidencc which they have inspired. II
respect to the international crisis |
might he said that financial opinion hel,
In the main to the conviction that tn,
European Central Powers could no
afford TO risk a preach of relations which
would inevitably tend to make the vas
resources OF this country more availabl
for the support of the Quadruple En-
tente.
Copper metal was quoted as high a
30 tents a pound. A most strlkin,
statement of railroad earnings publishe
for November was that OF the Pennsyl
vania system. showing for all lines
gross increase of 1880. 900 and n ne
increase of 1855, 900. In the foreig
exchange market German bills fell to
new low. with demand at 1855.
further markdown OF the selling pric
o. German bonds which are under offe
here was therefore in order. On tn
other hand sterling exchange was strons
with demand at 4,73ss. Also the Anglo
French bonds were actively dealt in q
34is and 94hs, holding with a good dea
OF firmness their rally from last week
low figures. The receipt of more gol
from London was further assurance the
British finance is working out n care
fully considered programme for kecpin
sterling exchange In a state OF stabilit.