New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-06
REVIEW OF THE
FINANCIAL WEEK
Liquidation of Commission
House Accounts Helps
Markets Position.
APPREHENSION OVER
ATTACK ON VERDUN
Washington Crisis in Submarine
Case Also Brings Caution
Railroads and Labor.

Germany caused apprehension. selling
from the commission houses was III
large volume. Prices Of many issues
went 20 the lowest since the first or
January. and brokers closed out 4 good
many customers because Of impaired
marg ms. Altogether. considerable was
done toward reducing the amount Of
stock held TO be sold for speculative
profits.
At the same time. a short interest
Of some size was built up. which must
ropurchasc 10 undo It's commitments.
and il was felt that the market was IN
the most healthy condition that had
been seen for some months. How thor
oughly the housekeeping process has
been accomplished will appear later.
Prices did not decline far enough 20
bring IN any appreciate amount Of
new purchasers from the outs de. and
new buying is necessary for any sus-
tanned advance. Still, securities arc
IN stronger hands az result of the
shake-out.
II was perhaps desirable that the re-
action should not have been followed
by any sudden rebound The interna-
tional difficulties that face us have
been familiar so long that there IS
danger Of their being regarded with
unmerited contempt. Penetration by
the German forces Of the Allies lines
at Verdun or elsewhere on the western
front might bring again the spprehen-
sion felt in the early autumn Of l9l 4
An actual break with Germany, as last
weeks Washington dispatches sug-
gested. might not be the simple dip
lomatic procedure that some would
have Us believe.
Our Investors Not Disturbed.
It must be remembered that in spite
OF severe breaks in the market. we
have not seen since the beginning Of
the war urgent selling OF securities by
our own investors determined on turn
ing their holdings into cash. regard
less Of prices received. Inc lqulda
ton az the outbreak Of hostilitles had
rs principal origin abroad and IN the
financial district; throughout the coun-
try investors did not have time 70
realize what was happening. The sink
INK Of the Lusl,anls was not followed
BY the wide secondary break from out
side selling that many feared.
Possibly smother drive a. Par.s or
our engagement. in hostilit!es might not
greatly disturb investors. Certainly
neither should mean sudden overturn
Of our domestic affairs that would
warrant widespread realizing on in
vestments. Nevertheless we must re
member that the effect of such crisis
on the minds OF investors cannot ac-
eurately be foretold. Banking interests
p 10 CIV h
lie warning and applying private pres
sure 20 prevent undue expansion on the
Stock Exchange. While the present un-
certainties exist brakes may be kept on.
Should this crisis at Washington.
with It's undignifed friction between
President and Congress, end in some
peaceful settlement With Germany, and
the menace Of the Central Powers ad-
vance in France be removed. then the
accum ulated strength OF our trade snd
industry may well be expected again
10 tell in securties. There are many
new issues yet undigesteG 10 be alb
sorbed. and large amounts Of European
holdings still 20 find Judgement with III
innate investors. 4 market must be
made for this distribution
Available Funds Pile Up.
Continually expanding business. grow
INK profits and full employment mean
gathering together OF funds 70 be placed
in securities. OF course We are spend
ing more for luxuries than year ago.
Pleasure resorts, including New York
City. are filed with pleasure seekers.
precious stones end similar Injuries
are coming in greater quantity from
abroad. but lessons Of economy have
no, been altogether forgotten The ma
tons fund OF savings continues 10
grow. Sound securities still offer yield
on investment we'll above the tradition
al savings bank return and easy money
facilitates operations in securities.
In this city last week there was r
little irmer tone to the money markc:
but this was not sufficient 20 cause
any noticeable change in rates. Time
loans we're still made q, 2i2 TO 2@a
per cent for sixty days. Aggregate
reserve holdings Of local Clearing
House institutions made another loss
amounting 70 nearly 100000. but
loans and deposits shrunk more than
10000 900 and surplus above require
ments was S2,o00,000 higher, al S127,-
SOC. 200.
From abroad We have been getting
much less gold since Great Britain an
nounced her plan 20 use our securities
for payment OF debts here. Gold i'm
ports. which in November were nearly
s6l 100000 and in December $4,000
600. dropped in January 70 $4,000, 900
and for the first eighteen days Of last
month only about s7.500.000 was re
ceived from abroad. At the same time
the securities sent here 90 balance in.
tcrnational accounts have largely be
come basis for banking credits, in
creasing reserve requirements. Idle
funds here are still plentiful. but they
are not 90 unwicldv as 90 constitute
the pressing temptation for undue ex-
pansion Of credit they we're few
months back.
The sterling exchange market is vel
under control. London checks keeping
last week close 70 the rate OF 4.16iz IN
the pound. French exchange was
weaker. and arrangements for strength
ening French credit here are being dis
cussed. Fluctuations of the other e.
changes have not been particularly
significant mparatively little bust
ness - done in bills on other cOun-
tries.
Railroad Union Demands.
Reports % general business received
little attention on The Stock Exchange
More dividends were increased. includ-
ing those Of some Of the better known
metal producers. The copper situation
however, seems one where the good
news H. out. and increased disburse
mcnts bring no surprise. Earnings OF
the big trunk lines made known showed
large increases in total receipts and, in
spite Of enlarged maintenance ex-
penditurcs, good gains in net The
coming dispute with the railroad broth
erhoOds, however. tends to keep down
railroad stocks. During the week the
market heard little Of the progress
toward settlement OF labor trouble in
IL oo.L EcLLa uL1cL I'D hnor. o.