The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-01
FINANCIAL NEWS
AND COMMENT
Million share Day in a Lqui-
dating and Declining
Stock Market.
PRICES DRAW BUYERS

u
street disa ppointmcnt yesterday with a
stock market which exhibited the most
acute weakness Of the month. Trans
actions Appropriated a million shares.
and this aggregate was a measure OF
very extensive liquidation. a good part
OF Il Of a forced character. Such nm
OF trading might ~justihably
he taken as an approach to "A turn for
the better. for although the market
itself displayed no significant rallytng
power II can hardly he questioned that
the very impaired technical position
which existed a month ago has been
materially corrected in tho last few
weeks. II this Is chiefly what has been
the matter. II the market has been in
the main suffering from an overbought
condition. and Wall Street In general
has seen no reason for assuming any
thing else. a degree Of relief has been
afforded which ought to go far toward
restoring quoted values to a more stable
status.
President Wilson's speeches on pre-
paredness were apparently a prime fac
tor IN accele rating and extending the
January decline. Consideration over the
week end OF his line OF argument as TO
the necessity for preparedness. init
mating vaguely specific and imperative
causes Of an immediate nature. tended
to provoke uneasincss respecting the
country's foreign relations. Conjecture
was privileged to indulge as II pleased
in guesses as to whether or not the
President was making yelled reference
to the Lusitania controversy or to the
pending disputes with the Allies over
the treatment OF neutral and
neutral malls or whether Mexico was
meant, out in any case the u~tterances
added to the disturbance OF sentiment.
Apparently the West was more affected.
az a substantial amount of liquidation
was reported for Western account. The
Eastern community was on the whole
less impressed, but It developed a feel
Ing "f Increased conservatism which
was intensified by the stage Of reprisals
into which the European war has en-
tered and by the gains of the German
offensive on the western front.
Meanwhile further notice was taken OF
the aspects Of the Brandeis appointment
to the supreme Court. ot the Admins
tration's purpose 20 press It's Govern
ment merchant marine plan. of the man,-
festations of the taxation mania in Con.
gress and of the difficulties surrounding
the tarif commission programme. All
Of these, under the circumstances o!
the stock market. operated TO foster the
selling movement n restrain aggres-
sive buying. but 30 far AS indications
went the external influences were only
auxiliary factors. Wall Street paid at.
teItion to them principally because the
share list had lost its balance and
was sensitive to disturbing external con-
siderations as a result. Incidentally |,
is interesting 20 note that in both ths
grain and cotton markets. in which Their,
have been overbou2ht speculative posi-.
tons. there was also further liquidation
and sharp decline. both markets ascrib-
ing the increase Of weakness 10 the
Presidents addresses and the Other
matter TO which reference has been
made.
Foreign liquidation or the aprrehen.
sion of II continued to weigh heavily
on the International list. but there wa
no department OF the stock market ir
which there was not heavy selling. Some
OF the war stocks In which there has
been a large amount OF liquidation lately
such az Cruclhle Steel and Baldwin
Locomotive, exhibited r~allying power and
even vigorous strength. For the mos'
part. however. ~recoveries %throughou'
the market were moderate and were not
wa maintained tinted states Stee
was under steady pressure all day. anc
lis failure TO Recover any OF its de.
cline seemed to hold the res, OF the lie'
In check. Professional selling for IN.
decline was actively conducted. hui, IN,
large volume of actual liquidation mad,
the covering Of short commitments ar
easy process.
There was throughout the day ever,
evidence OF excellent buying NM only n
standard shares but in many of the NOR.
speculative descriptions. buying of tn.
KIND which eventually makes itself felt
but purchasers yesterday seemed 10 b.
willing TO absorb offerings without an,
disposition TO discourage sales by effort,
10 advance prices. With some con,
spIcuous exceptions the market IN III,
main closed at or very little above IN,
low levels of the day. but II Is wortf
remtrking that the average OF low price,
was practically established IN m. fro
hour, which was the period of mos
pressing liquidation.
At going figures there is no obyiou:
reason for sales kept as They ma,
represent the exhaustion Of patience OF
the part OF speculative holders or Tn.
exhaustion Of margins. The market f
neither 50 excessively overbought nor :,
much inflated as II was. and current quo
tatlons can hardly fail to attract buyer,
b"lcause the range of quoted values ha
apparently discounted very much ad
Nersity that Is only remotely contIngen
and does not reflect the solid founda
tons OF profitable business expansion