New-York tribune., 1916-07-07
MARKET NEWS
AND COMMENT
Stocks React After Early
Advance and Close
Irregular.
WAR ISSUES UNDER
PRESSURE AGAIN
Reading and Union Pacific Lead
the Rails-Pennsylvania
Financing.

Without any noteworthy change IN
the character Of the trading, the stock
market, after an early display OF
strength yesterday. when many issues
established new high prices for the
movement. developed increasing irregu-
laritv and left of with a heavy tone.
While some further commission house
buying of railroad and industrial issues
was reported. at the outset most OF the
business originated in professional
quarters, and. like many recently pre-
ceding sessions. the markets trend was
governed more by the whims OF the
traders than by the actual news de-
velopments of the day. Nervousness
on the part Of some holders OF out
standing short accounts contributed
toward imparting early strength to the
list. but after this demand had oeeh
satisfied the market turned dull and
irregular and subsequently on SI'gh'
increase in offerings reacted. generally
closing substantially of from the hlgh;
So far as the days news ouu9el
rarketvise importance was concerned
there was little that was dllerehV IoD'
tho preceding session. Advlces from
Wosbington that Villa and his men had
anneared in northern Mexico, headed
for the American border while lalllhS
"a cause anv apprehension. neverthe-
loss was construed more or less uh-
favorsblv as containing the posslDihlN
of move trouble. On the other hand,
tho status of affairs between Nashlng-
ION and the Carranza government con
tinued hopeful. An adverse Development
viewed from its bearing on the war
stocks WAS the announcement OF lhe
Westinrhouse Air Brake Company OF
its intention to dismantle IT'S muniton
nlant constructed over year ago 10
turn out large shell contract LOT the
Allies The accompanying explanation
that this action was taken I'D We" VI
the lack of new business oil inns cnai
acter corroborated the current DeAel
in conservative circles that very httie
new war business Of tnls character VIII
be nlaced on this side from now on
owing 10 the ability of the AllleS 70
+sko care of their own needs. W ar
stocks which had displayed a tendency
tn recover on Wednesday sagged OF
again for substantial losses. with
Crucible Steel and Baldwin Locomotive
under special pressure.
The early advance took place under
tho leadership Of the railway issues
with Reading and Union Pacihc the
chief features. Steel was also an early
firm spot. while the revival OF pool
activity in certain Of the specialtes.
notably the sugar shares. sent some OF
tbem to new high levels. Metal shares.
on The other hand. with few exceptions.
Jagged most of the day. with the zincs
especially weak on lower metal quota
tions. Reduction IN the price OF iead
bv leading producers pointed TO a con
tinuation Of the readJustment OF metals
20 changed conditions OF production
and consumption. The reaction IN the
afternoon in the general list carried
practically all issues down. Inspiration
Copper proved an exception, however
and closed more than point up.
Tho semi-annual settlement period
Mus the drain of gold to America ap-
parentlv reflected IN the less favorable
return Of the Bank OF England, which
reported a loss of $7,625,o0O in gold
while loans expanded sharply. the pro-
norton Of reserves TO liabilities ac-
cordinglv falling from 2S.22 per cent
Of the week before to 26.0S, comparing
with 1888 month ago. The French
bank gained something more than
81 .OOO. 900 in gold, but reported another
large increase in note circulation.
With the first report Of the season on
the condition Of the corn crop due from
Washington to-day more attention was
paid to the governments weekly
weather bulletin, which took note Of
more favorable growing weather IN
most portions Of the crop belt. Rail
way earnings continued uniformly
favorable. with the June gross of the
Great Northern system estimated at
S7.O42.3S4. an increase Of Sl,S48. .76l.
Strength Of the city bond issues, which
sold around the high prices OF the year.
and continued frmness of the Anglo
French bonds featured the investment
market. Announcement of the sale by
the Pennsylvania Railroad 10 its bank
ar, OF 10000 900 nine-month notes at
g.. per cent attracted attention IN
financial circles Call money continued
irm around per cent yesterday. while
there was little or no change In the
foreign exchanges