The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-13
FINANCIAL NEWS
AND COMMENT
stock Market Moves Upward
All Around on short
Covering.
WAR ISSUES LEAD TT

A rally was manifestly in order In
the stock market yesterday after the
early trading showed a lack OF liduidat-
Ing pressure which had been expected
overnight by professional SPECTATORS
for the decline. Is a result a move
ment to cover short contracts was
started which In the course Of the day
effected a fairly extensive upturn IN
the descriptions which had lost most
ground lately. There was no increase
Of dealings, but the session was rather
animated on the whole. The close was
strong with only moderate recession
from the best figures.
That Wall Street is absorbed at pres
ent in the technical position OF the Sc
curities market was again plainly indi-
Gated by the Stock Exchange day. The
shocking outrage OF the murder OF
American citizens reported from Mexico
was calculated 10 disturb sentiment even
II quoted values had not been IN a par
ticularly sensitive position. There is no
question that a variety of important
confusing influences relative TO the Eu-
ropean war and other matters OF our
foreign policy. together with such sub
jects OF concern as are provided by the
domestic labor situation and the general
political prospect at home. are shaping
financial and business calculations
Wall Street, however, seems 20 be de-
voting its entire attention 20 factors
which are peculiar to tho stock market
itself. namely. the manner In which Sc
curities are held n the buying power
or borrowing power which will this year
he requisite to accommodate large adj
dillon to tho mass OF securities that
must he kept in a state OF suspense
In collateral loans while they are under
going a process OF absorption.
Al the outset OF the day there seemed
TO be a feeling that because OF the un-
checked eakne displayed on Tues
day stocks might be on the verge of a
break in that quarter OF the industrial
department where the technical posi-
ton is most impaired. The Mexican
ami other news could in that event have
served 10 accelerate the pace of decline.
Yet the prevailing impulses for market
action were provided almost from the
opening by the evidence that, AZ least
for the time being. the list had again
been speculatively oversold and that
the long account was not more vulner-
able to speculative attack h al any
time in the last two months.
In consequence something like opera
ilons against the new short interest were
apparently undertaken and were prompt
~ rewarded with a good deal OF sue
cess.
Prices were advanced easily on rela-
lively little buying and II WAS not until
the last hour that n supply OF stocks
again appeared 10 take advantage az the
buying demand which had been created.
The retreat Of bearlsh spectators was
encouraged by circumstantial reports
abou, additional war contracts and by
a rather aggressive diversion In several
industrial specialties. the most consp!cu-
Gus of which was the extensive rise pro-
NOTED in sugar stocks.
In the war munition shares rallies Of
! five points or more from the early low
levels were made before any renewed
opposition was encountered. Rails and
the standard industrials displayed firm
ness, but as they had not been remark
ably depressed their gains We're more
limited In the upshot there was moth
Ing in the session which WIS OF signii-
| canoe IN denotlng whether or not the
market still had any dctiuitc trend or
what III" direction ~ II might hc.
IN the foreign exchange market l'al-
AN bills sold at new low prices. Marks
were firm. hut sterling WAS strong. and
reports were current that british llqu'-
dttlon OF our securities was continuing
N volume heavy enough to assure sup
! port for remittance on London II not
to bring about "A rise t. a new maximum
! Of recover. So far As regards the tenor
W adviCos bearing on security values
there was nothing n the markctNIsc
news which suggested any change IN tho
situation Of strongly expansive forces
that stocks have for many weeks failed
SO curiously to reflect. Til" wcckly re-
views Of conditions in the iron ana steel
trade reported that thcr" was lc>s active
inquiry in finished lines, an altogether
seasunable feature, hut that prices we're
| nevertheless rising pcrsistcutlv.