Evening star., 1916-07-02
MEMORABLE YEAR
IN STOCK MARKET
Last Half Begun Under Handl-
zap. Due to the Mexican
Situation.
LATEST TURN IN EVENTS
IN EUROPE ALSO FACTOR
Trading Yesterday Indicated Re-
action, But Sales of Small Value.
Iron and Steel Review.

NEW YORK, July 1.-The market Tor
securities enters upon the last half OF
a memorable year under a serious
handicap resulting chiefly from the re-
lations between Washington and Mex
leo. That situation was almost the one
subject of discussion and more than
anything else contributed to the i'm
pairment of quoted values.
Some of the broader aspects of the
Mexican controversy. including the
possibility of bond issue by the gov
ernment to meet expenditures of border
patrol. occasioned much conjecture and
were reflected in the relative heaviness
of existing issues. The latest turn Of
events in the European conflict also
bore pertinently upon proposed under
writings by our bankers for British and
French interests.
There was almost a steady recession
during the week in rates of exchange
to the central powers, while sterling
and francs. particularly the latter.
showed distinct improvement. Domestic
holdings Of gold were further augment
ed by additional imports, mostly from
Canada, with at least two direct ship
ments from London.
Relaxation From High Pressure.
Although domestic trade conditions
indicated further relaxation from the
high pressure of the first quarters
activity. general business conditions
continue eminently satisfactory. 1t is
accepted as a fact that the second
quarter of the L. S. Steel Corporation
will show earnings vastly in excess of
all previous records.
Further abatement of domestic in
Quiry for copper and other metals is
seen in the heaviness of shares of those
companies, notwithstanding further in
creases of dividends. Substantial recess
sion in prices of special stocks were the
result OF enforced liquidation, together
with voluntary selling by investors. to
whom the outlook in that quarter of the
market seemed discouraging.
The most favorable news of the week
was contained in the remarkable state
ments Of earnings disclosed by the big
transportation companies. New York
Centrars combined net revenues for
May of $6,297 900 were more than dou-
BILE those of last year, while the Penn
than s4.000.O00 was scarcely less i'm
pressive. Other roads reported net in
creases of 40 to So per cent.
Trading of Small Consequence.
Yesterdays late reaction gathered
greater force and scope during today's
brief session. Trading was almost too
small for serious consideration, how
ever. the total turnover amounting to
only $4,000 shares.
Specialties were again under the re-
etrfctions imposed by the Mexican sit
uation. although other adverse factors
were not without their influence The
reported successes of the entente al
lied forces were in a measure RESPONSE
BILE for the weakness of certain muni-
tions and equipments.
United States Industrial Alcohol was
again the weakest stock, declining AZ
points to 1874 and closing at 1871,
loss of points for the week Mexi-
cans as a group were no weaker than
other special stocks, such as marines,
motors. coppers and allied issues
Studebaker and Baldwin Locomotive
were singled out in the later dealings.
the former losing almost points, with
only slight rally. and Baldwin being
sold on reports of labor troubles CRU
chile Steel manifested little recupera-
tive power on its decline of almost 2
points.
United States Steel stood out for its
hrmness. at no time making more than
q small fractional loss and closing yir-
tually unchanged, but Bethlehem and
some OF the more obscure industrials
were TO points lower
Canadian Pacific Chief Feature.
Rails held tenaciously, as was ex-
pected. in view of the marvellous state
ments of earnings submitted over night
by the Pennsylvania and New York
Central systems. Canadian Pacific was
the chief feature. gaining almost 2
points. with as much for Nickel
Plate. and Atlantic Coast Line, while
wabash preferred shares were active
and decidedly strong.
In keeping with general expectations.
the bank statement showed large
actual cash loss-more than $4,000 =
ooo-with decrease of as much in
excess reserves. while loans expanded
by slightly more than s13,000,000
weekly trade reviews touched upon
the prospects OF large government ex-
penditures in connection with affairs
IN Mexico and reported the current dry
goods distribution as the largest for
this period in years.
Bonds were lower with stocks TODAY
on nominal dealings. Total sales. mar
value. 31.o35.ooo '
United States bonds were UNCHANGED
on call during the week. with material
concessions in coupon Is and registered
Is on few actual sales
Orders by U. S. Government