New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-06
Financiers Friendly to
Germany Believe Politics
VIII Force Break.
SALES FLOOD MARKET
IN EARLY TRADING
Bargain Hunters Start Rally and
Active Stocks Close with
Strong Gains.

The action OF yesterdays stock mar
ket indicated belief that there would
be no break with Germany over the re-
ply TO the Administrations note on
submarine warfare as 1t has been con-
Quoted by the Teutonic allies. To sup
port this view there was also strong
banking opinion that for the time
being there was no danger OF a war .
In other banking quarters, however,
particularly those with inclinations
favorable 10 Germany. feeling Of pes
simism prevailed The argument was
put forward that a break was practi-
cally inevitable, because the President.
for political reasons, could hardly
back down on the letter Of his note,
based on the sinking Of the Sussex.
Thinks Break VIII Come.
The head Of a prominent Wall Street
trust company put things this way:
Assuming that the text Of the German
note as received by the State Depart
ment will not be materially changed
from the version in to-days papers, my
guess would be that IL will lead to n
severing Of diplomatic relations with
Germany"
The president Of big national bank
carefully avoided the term "a break
in diplomatic relations" lie rendered
the view that the present German note
would not lead 20 war. He called it a
very strong and adroit presentation OF
the Germanic viewpoint, and said it
was so cleverly worded that the Admin
istration would experience much diff
Guilty in using it as an excuse for a
break. This banker thought that the
German communication would lead 20
further exchanges along the same lines
that have arisen over every ht"
crisis
German Obtuseness Shown.
An international banker Of first inn
rortanco said the German note fur
nished another excellent example OF
that nations moral obtusencss. He
referred particularly 20 those para
graphs abiding 10 Great Britain
blockade policy and the assertion
that Germany would behave II the
limited States would make England
dc likewise. "The only trouble WIN
{he German viewpoint said TINS pank-
or. "is that she apparently cannot see
the difference between wanton mufuer
end stealing handkerchief. q,
oil tho CnTn1Ong CTnNe0NtO
so HIGH financial circles during the day
= there was unmistakable evidence OF me
s, oriniou that President Wilson had been
bested I'm his speciality Of underwriting
and further that he would not 1--we up
10 his previous threats on the matter
81 Submarine warfare. Germany, bank
ers said. had brought up the Wllsonian
doctrine Of humanity 30 cleverly as TO
make il extremely difficult for the Pres
idcut 10 take the initiative 10 q matter
that could easily lead to war;
Rush to Sell at Opening.
The antics of the stock market proved
10 be the most thrilling that nave heeh
witnessed for many a day. Not al the
contents Of the German note had been
read at tie hour OF opening, but
enough had been seen 90 create med
rlsb 10 sell. Brokers reported 10 their
Offices that selling orders were in owl
dence all around the big trading floor
.of the exchange.
This became apparent a. the sound
ing Of the gong. and during the first
1--WE minutes Of trading prices broke
10 their lowest levels Of the day, the
losses i'm the most active issues aver
aging from ono 20 six points. IL was
soon apparent. however. that there were
a good many buyers waiting 10 get
stocks at bargain figures, and IT vas
not long before q rally set in that
carried prices well above their low
levels. BY 3 o'clock substantial gains
over Thursdays closing quotations
were shown throughout the active list.
Buying was so strong in United Fruit
Mas TO carry 10 UP gas points, while next
in line was Railway Steel Spring. with
" gain Of 81. The losses at their low
est ranged from 2 90 6 points IN the
industrials. while lesser declines were
suffered in the railroad list. The fol-
lowing table shows to what extent
prices recovered from their low levels
of the day: