New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-06-03
Germany's Naval Victory
Sends Prices Lower in
Sharp Break.
IRREGULAR RECOVERY
BEFORE THE CLOSE
Sterling Exchange Held Steady
Railroads Firm, CopperS
Weak Early in Day.

The German naval victory, an
nounced in the afternoon. sent stocks
lower in a quick furry. Selling orders
were rushed In the market, and for q
brief space there was little support
The whole list broke, losses extending
up to points. Later there was an ir-
regular recovery that left active issues
from a fraction TO point or more
down on the day The Anglo-French
bonds, which had been selling at 95's
broke one-quarter of point and ended
at their lowest.
Details that reached the market
were meagre, but the brief bulletin
from London did not appear to make
the blow to British prestige any less
serious As both fleets were reported
retiring after the engagement. the Al
lies control Of the seas. on which is
based our international trade that has
done so much for our prosperity, IS
still effective. The question inevita-
bly, arises. how ever. how safe II is TO
count on this control.
The victory of the German cruiser
squadron off the coast of Chill year
and a half ago was a small engagement
Of detached vessels. Yesterdays en-
counter. from the news that came IN
business hours, seemed nearer TO af-
fording q test of the Great war fleets
and was so absolutely contrary to VIII I
had been expected that financial sentl-
ment was much more disturbed than
the changes in prices of stocks at the
end of the day would indicate
The morning had seen an irregular
opening followed by pronounced
strength in a number Of railroads and
industrials, and after some setback
prices were firm again when the alter
noon break came, with the coppers the
only weak spot. 4 number of issues
rad reached new high prices. not only
for the present movement but for all
time. Norfolk e. Western began TO
advance early in the day and got un
points. Chesapeake e. Ohio, Reading
Pennsylvania. St. Paul and New YORK
Central also improved.
More definite discussion of the com
ing merger of automobile properties
caused considerable buying of these Is
sues. international Mercantile Ma,
rine certificates advanced, the preferred
getting a fraction above their previous
high. up over 8 points, as conferences
Of interests involved in the reorganiZa-
ton again pointed toward some settle
ment !,
When the break came practically all
these early gains were quickly wiped
out. Railroads got down ! to points ).
below Thursdays close, Steel was on
q point and the more speculative INDUS.
trials made losses of greater extent il
this successful foray Of the herman
feet should turn out to mean that our
commerce with Great Britain ana
France is no longer safe, the position
of companies that hope to make iur1hev
large sales across the seas Would De
decidedly changed. g.,
Exchange rates were held stead IN
snite of the news from the other slde'
sterling exchange closing higher, at
AKA for demand. If fuller news Goes
rot nut a better aspect on this brush
reversal there may be some delay III
rocotiations well under way lot
etrenpthening exchange. The local
money market early in the day hau
shown a firmer tendency, with time ac-
comroodation more closely held IN eN-
notation Of higher rates IN midSum-
mer.