The sun., 1916-10-07
FINANCIAL NEWS
AND COMMENT
Rumors That Germany Seeks
Peace Tumble Prices in Last
Hour Of Trading.
OFFERINGS WE'LL K
Banking Houses Buy on the
Decline-Market Is in a
Strong Position.
OFFERINGS WE'LL TAKEN

Professional traders who for weeks
had been working to bring about q break
in stock market prices were ably as
sisted IN the las. hour Of business yes
terday by certain big banking interests,
who made the announcement they knew
II to b a fact that Germany had asked
or would ask President Wilson ~ Use
his good Offices In efforts 70 end the Flu
ropean war. There appeared to b. re-
markable anxiety on the par. Of the
bankers to let the public know that Ger
many was ready for peace indeed they
Kaiser was ready to have the United
States act for him in peace negotiations
that In commission houses the impress
sion naturally developed hat some III
terror motive was responsible for the
statement. In other words. operators In
commission houses believed the Idea was
put out for effect unon the stock market.
But perish .he Thought.
A. The wal buying In this country has
been responsible !or our abnormal pros
perity and the cxttsord r1rily strong po-
sition Of the financial situation. which In
turn have been efre tive in attracting a
large public demand FOR s'ocks on ad-
vancine prices. Wall stree. had n chill
when the announcement came from Il re-
sponsib!e banking source that Germany
wanted peace. The positive statement
that Germany would ask the United
States 10 act for II came at the psyche
logical ONE FOR stock market bears.
whose operations were effective in bring
ing out a large amour: OF weak commis-
sion house liquidatlo based upon the
has:v assumption that earnings of cor
vorations would he GU, In two. that gold
sDon would begin TO teave this country
nd that the most extraordinary bull
movement in the history OF the Stree;
nd run It's course.
Prices had been advancing IN the
early operations. with marked stren.th
in most departments OF the market
VIVA, looked like an active resumption OF
the bull movement on n large scale was
turned into a period OF doubt. uneasi.
ness and lower quotations throughout the
1T. many sharp declines being recorded
With prices closing at or near the low.
est. from 1 TO 3 points down.
on the decline stocks were well taken
especially United states Steel and III,
rails. whllo there was relatively goot
demand for all the Issues representing
'
'~'nnUunl,' $3.50 unce..s or "u'IeeLi'
.''n''"e. WIN ~ m""u'a''"' W "I"''
tIVhN. N''u'a"S me var S'o'NS "e''
I'ess.u 'oT s.'e' W ON. s"H'p.lse wa
'h"' 'ne occ.lho IN tneih uin nor run u
4 srea'er extent nan repor'eu'
ic'hais NV susS's''o" OF 10 oe I.oI
accurate tn' ahtlouNce'heht tha' ger
many wou'u ASK tor peace came uirec
rom ,orefh nahNers 70 tne'I correepon
dents mere No one except me irsider
Know a the nan"ers were not actin
IN 1000 Iaith toat tney mao an ide
OF the eHcct or tne'r announcement upo
stock marke' prices should not De take
Tor granted. But mat perhare the pank
ers were inhuenced 10 oe'ieVe German
was ac'ins IN good fa'th possibly IN tel
ing German barkers 10 tell New for
bankers OF lite desire for peace, when
really was anxious 70 upset our fnanc!'
markets In order to inconvenience n
Allies In their vast financial operation
In the American market. Ia open TO b'
lief
The Street was we'll provided wi
theories regarding the why and wher
fore OF the whole business, but In II