The sun., 1916-10-16
FINANCIAL NEWS
AND COMMENT
Breaks in the Stock Market
Weaken Public's Confidence
in Rising Prices.
POLITICS A FACTOR NOW
General Conditions Show Moth
ing to Indicate Continued
Contraction.
POLITICS A FACTOR NOW

Although there are many observers In
the financial district who insist that the
declines In stock market values last
week were merely Incidents Of q bull
movement. It Is quite apparent. never
theless, that public confidence in the
theory that the advancing movement
has not yet run its course has been de-
cidedly weakened. 1t is apparent also
that the larger financial interests are
not disposed to encourage at the mo-
ment a resumption of the sort Of activity
that marked the course Of trading Just
prior to the announcement by a promi-
nent banker that Germany would ask
tho United States to work for peace
among the warning European countries.
Fundamental conditions have not
changed indeed. they are stronger to-
day h at n other time In the cur
rent wave OF individual prosperity In
the United States. But sentiment has
changed In so far as speculation In
stocks Is concerned. For the first time
in many weeks the market Is a two
sided affair, and according to the views
OF the best informed men In the Street
- WIN MAJ ~ hitN fpFsN''h - 80
little time TO come, particularly as evil
dence multiolies that politics Is to be-
come more Of a factor In stock market
considerations
In Fridays operations politics was
injected into market discussion through
the report that one large operator was
disposing of his holdings because he
believed President Wilson would be re-
elected. The political campaign prom
ise to bring forth arguments that may
have a bearing upon both sides OF the
market. and the submarine situation can
not be d~isregarded as having had Its
last fling at securities prices.
Might Have Postponed Break.
II the German submarine had stayed
on the other side OF the ocean the break
in securities prices might have been post
poned. Politics. with all its uncertain
ties. might have been set aside except a,
an argument in favor OF the bulls. and
warnings by economists OF the trouble:
that they believe are to come to tn,
United States with the end of the wal
might not have received the slightest at
tent!on in public and Wall Street circle!
despite the fact the need OF a %readJust
ment Of speculative accounts In the best
interest of the situation was becoming
evident to all careful observers.
The peace talk at the close of the pre-
cedng week did little harIn 10 marke'
vaiues n recoveries were under wa!
wren ATOMS came the raid or the sub
marine. which opened such possibilities
Tor international complications re
stricted trade W. this country an'
the Aliies that the bottom promptly lei
out or what the public had believed TO b.
a no I'M upward move
ierhaps u would De netter 10 say ina
pubic recRlessness rather than publ
enthusiasm has been checked In the stool
market ANA IN connection win this
should DE noted that IL was not reckless
ness on the part OF the big army OF out
side operators VINO may be ciassed as IN
rirh pubic that made the slump so sc
rious n week ago to-day inc which en-
couraged active professional attack
upon marker values
Inc rich pubic 10 a great extent ha'
taken its prohts. while the poor public
whlch had come INTO the speculation o.
went down with broken bank account:
aon,n -. .uu,", wa g,
80 a,.no q a'a''.u, ~. oaHN
tha 80 -, &c :. e.eoulas!u
h,,,, .e,u.-p.,o" u "a
,ha, $40 ~ ~. .He .neo,
unu,,ra 1s.n - 1.e"u.'
f" Ah'it 40 W 4idNA VIA u EOo