The sun., 1916-12-15
FINANCIAL NEWS
AND COMMENT
Stock Market Prices Melt
Fast on Selling Prompted
by Peace Prospects.
SOME 10 POINT LOSSES
Metal and Munition Shares
Suffer Most-Rails Resist
the Heavy Pressure.
SOME 10 POINT LOSSES

Rumania. more ships were sent TO the
bottom by submarines. Great Britain
voted q new credit Of 100000 FOR
war purposes and made provision for an
additional million men OF all ranks In
the army and more orders for munitions
Of war we're received in this country.
In spite Of these encouraging" indica.
tions that the time 10 not yet In sight
when this war shall be no mora, Wall
street bears again found In the German
peace proposals reason for uneasiness
over tho future Of American industries
and they hammered stocks accordingly.
TIE result was that yesterday was the
largest day In point OF sales in the stock
market this year. the total being :.Ass.-
500 shares
That ultimate good to our own indus
tries will come from peace and that the
American markets will become impor-
tant factors in tho physical upbuilding
of Europe following the end OF the war
receive but little consideration IN the
street Under It's present hysterical mood.
And that the more substantial banking
interests are not alarmed over the de-.
cline In stock market values or NJ All
upset because that decline In frightening
public spectators. who recently were OF
strong conviction the upward movement
could not be interrupted. fails to reas-
sure the traders who zee their big mar
gins crumblng and who. listening to the
wall Of professional operat tors that prices
must 70 down, down and then down again,
throw over their holdings to real bargain
hunters. bankers view the situation
with complacency and they believe some
thing may come out OF the German peace
talk.
Banking interests asserted in the
course OF Tuesdays breaking market
/ that the decline would run further be-
! fore n healthful readjustment OF the
speculative situation could be effected
| This process was continued with con-
! siderable violence yesterday. The re.
cent international Developments merely
provided n basis for the start Of a logica
! movement on Tuesday and its further
progress following Wednesdays rally
while II was not safe to say at the Close
yesterday that the operation had run Il
completion.
! II Is n fact. however. that heavy Of
ferings OF stocks have been absorbed b.
strong interests and that the big Wal
Street men who for weeks have beer
waiting for an old fashioned slump hav'
taken the place Of the public as the chic
holders OF securities. Many OUTSIDE
operators, however. who took thei
profits weeks-aso share to some exten
with the b.g financial interests th'
ownership of stocks, for in yesterday
trading there were not few OF this cias
who had the money and the coincidence
to buy as timid owners rushed into al
most a panic.
The extent Of the decline weakene,
I ha hAAn
sldered strong enough\ to Withstand ,
serious depreciation In market values
And even In the many instances In which
speculative holders were financially abl'
10 protect their margin accounts tho verl
extent OF the losses upset their equill
br!um and drove them into q sellini
movement which In no way was base'
upon intrinsic values or upon any pros
pective change In the position OF mono!
and business In this country.
Many Of our nnanciers and business
men are changing their ideas regarding
the effect upon our industries Of the read
justment that must follow the end OF tn
war. They do not believe that peace II
itself will cause trouble here, for the!
see in the physical reconstruction OF Eu
rope great commercial demands In on
markets for materials. but they aT
somewhat concerned that our Congress
may not adopt economic measures 4
prevent abnormal dumping OF foreig'
goods upon our markets.
Probably. however. II vote wer
taken among our men OF affairs 1t woul'
be unanimously In favor OF the theor!
that cessation Of war would be blessing
to the United States as we'll as to Eu
rope. and that the after effects Of tn
conflict could not bring about the de
probation in the real value OF invest
ments which 30 many spectators bear
ishly disposed are now predicting.
Declines and liquidation yesterda.
were heavier than In Tuesdays SENT
panicky market. with the chief resist
ance to the movement shown by tn
railroad stocks. II was primarily an In
dustrial market. all the issues either di
rectly or indirectly Identified with tn
manufacture Of munitions moving I
severe losses. in some instances the max
imum declines reaching 10 points, an
the general industrial list from 3 to
points down at the close.
United States Steel common move
more than 6 points of to lI2k. as com
pared with a recent high record at l2s&
and Central Leather. which few week
ago sold at 123. after q perpendicula
rise from so. went to IS. 10 points dow
from Wednesday. Among some of tn
other heavy losses were IA points 4
American Locomotive. IN in America
Writing Paper preferred. SM In Atlantic
Steel, 1914 in Industrial Alcohol and 81
in Mercantile Marine common.
Money was relatively easy. and y fur
ther addition to the amount OF gold 4
tho country was reported OF $4,000
mn from, Canada