New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-06-21
Liquidation Stops, Shorts
Cover and Prices
Go Higher.
| CRISIS IN MEXICO
/ VIEWED MORE CALMLY
After Recovery in the Forenoon
Trading Becomes Dull
Days Total Small.

Instead of carrying on the decline
with which Mondays trading closed
( yesterdays market opened higher and
ma le considerable recovery during the
forenoon. The liquidation that had
/ followed news Of calling the national
| guard 20 the colors was not resumed,
and selling by the short interests less
ened. Repurchasing to cover short
commitments and some new buying
sent prices higher. Traders were still
/ disposed 20 be cautious, and in the sf-
ternoon the upward movement halted,
with some slight reaction toward the
close. Business done shrunk to less
than 100000 shares.
During the day there was made pub
NC the text of our reply TO Carranza's
demand that our troops in Mexico be
withdrawn. 1t contained the expected
efusal and, In addition, a recital Of
| the failure of the de facto government
20 maintain order and warning that
/ the United States was prepared TO
maintain its national rights. Unlike
messages we have sent to Berlin, this
uncompromising document caused no
weakness in stocks.
More clearly than on the day before
il was recognized that, IN spite OF our
display Of firmness, actual hostilitles
n Mexico might yet be avoided. The
threat II a modified national guard
will probably not be so effective as it
would nave been before our long for
hcGran,o gave courage TO the MeXicans.
Still tie Carranza authorities must
know how meagre are their supplies
of ammunition and how slim their
chances of adding to what they have.
IL the government in Mexico, such as 1t
is, can control its forces there still IS
room for hope that an actual clash
may not come.
So far as market sentiment was ex-
pressed yesterday, IL went that a decla-
ration OF war by Carranza or announce
ment Of intervention by the United
States might be expected to bring
sharp break in prices. Some few held
that a movement so generally antici-
pated usually failed to appear. After
the bad news was out, so II was argued,
the market should discount the pros
: ect of addition TO business from gov
eminent expenditure.
Should the present emergency that
has so emphasized our unreadiness for
military operations result in a compre-
hensive movement toward prepared
ness here there yet may be large or
ders from Washington for manufactur-
Of nf
and al the industries that have so
benefited from supplying the needs
of warning Europe.
All this, however, applied to the
future. For the present, yesterdays
trading showed that while there was
little apprehension, confidence had not
been completely restored, and hesita-
ZION might be expected until the out
come of this trouble with Mexico could
be more clearly foreseen. Speculative
accounts in the brokerage houses are
IN a pretty good condition The firm
ness OF yesterdays opening after
Monday g general decline showed that
margins had not been seriously i'm
paired.
The recovery extended throughout
the list IN almost as broad fashion as
Rad Mondays decline. Railroads came
bi ok n FAIR amount OF vlgor,
the more active carriers at their best
getting up a point or so. The indus
trials showed more irregularity, and
/ the metal stocks were heavy in COM
parisor with the rest Of the list. Sc
,uritie fuctuated within narrow
~ange IL the middle of the afternoon
and then a fractional decline set in to-
ward the close, but final prices of is
[ sues most dealt in were higher, with
gains ranging from fraction TO a
point or more.
The money market held firm, time
accom'l Odation getting a little higher
fer the shorter maturities and CONNER
cial paper being purchased on a small
scale. Sterling exchange was steadier
than on Monday, whatever movement
may DO under way toward bringing
/ back funds from London not appre-
Gladly affecting rates. A shipment OF
I SO 100000 in gold from Canada carried
he total brought in during the last
two months up to over sos, 100000
! Preparations for the $l00,000,0 900
french lean have not been interrupted,
and bankers interested profess every
confidence Of an unusually successful
/ 1otaticn.