The Detroit times., 1916-02-14
news DOES NOT
AFFECT PRICES
That Is Claim of j. ;. Bache
& Co.. in Reviewing
Markets Action

day TO attribute the action Of the
market 10 this and that item OF cur.
rent news, but we believe news is
having little effect upon the level
OF prices. says the weekly review Of
j. S. Bache q Co., New York.
For some time. as We have said
Wall.st. collateral loans have been
at very high level, due 10 the
vide public participation in The mav
ket. In ordinary times the remedy
for this. nearly invariably. has been
a topping over OF Tho market due
10 excessive supply Of stocks, caus.
ing a break and thus relieving the
situation Professional traders, rec
ognizing the over-lusnei condition,
have for considerable period been
endeaSoring To bring about shat
would naturally ensue-namely, the
break in prices 10 which We have
alluded. A break finally did come.
but SIS proportions we're not large.
and while there Was some shifting
OF stocks and wedding out of the
weaker accouut-. the extent OF the
decline was not anywhere near what
might have been expected in nor
NAL times, the public in the market.
being az the present time so we'll
entrenched with funds. The decline
that did occur IS said by money
brokers 20 have reduced general
wall.sf. loans about 20 per cent II
these figures are correct, this should
produce quite a relief and form the
basis for some rise. II Is a ques-
ton. however. whether this estimate
OF reduction is not high. AZ any
rate, il is hardly sufficient. alone, 10
form the basis for long upward pro-
gress.
I'm a market like this. where
prices are not ar all high consider
Ing money conditions. and where
the foundations are nearly all fay-
orable. investment buying proceeds
On reactions, and this has been go
ing on more or less steadily. This
In itself. II long enough continued.
would further reduce public commit.
ments TO a point where a substan-
tial advance might ensue.
"Offsetting this. however. in the
present market, has been the foreign
% American securities,
railroad securities. This
has undoubtedly employed consid-
erable part OF the regular invest
ment funds. and this liquidation
must probably for a long time be
taken into account II Is in the
bond market. perhaps more than In
the stock market, that the evidence
OF investment buying is openly
shown. and activity in bonds IL one
Of the bright features OF the mar
ket.
But the crusade for larger busi-
less with the other Americas Is be-
ng conducted with skill energy and
lbility by some OF our greatest and
most intelligent business leaders. II
9 bound 10 succeed IL the handicap
4 our own government rictures
gainst business and against com
nerce is removed. That We have
Iot made greater progress thus far
5 due 10 a number II lings. Our
merchants have lad little expert
nee in attracting foreign custom
RS, in estimating foreign credit, In
making goods attractive &c foreign
,eoples. United States laws are so
ramed against any united effort AT
foreign markets that CO
operation is practically forbidden |
Ind mcy even be constr, ed a. Grim /
nal. And so the individual mer-
chant must compete alone against
strong combinations Of other gov
ernments with their business men.
which are using every agency Of
efficiency and Of sc entifc. economic
instrumeutaiity 20 undo rivals. This
Is maniiestly unfalT--it is more. Il
is danG rous. The campaign is also
harassed, or will be later, By lack
OF our own merchant marine.
Freight plays 20 important a part
In this operation that our merchants
are ~ tho hands ~ foreign ship
owners, unprotected AGAINST being
fleeced. And here again our gov.
ernment stands in the vay