The sun., 1916-10-30
FINANCIAL NEWS
AND COMMENT
Advances in Stocks Reflect
General Prosperity All
Over Country.
YET IS SEEN
Technical Position Of Market
Is Dangerous for Mar
gin Traders.
YET IS SEEN

Upward of S50.o0O.oOo in gold was
In this country from Canada
last week, making n total since Jan
uary'1 Of more than s465. 900, 900, and
more than $7io.000,0 900 net since the
movement began soon after the opening
OF the European war. Bank reserves
throughout the country exhibited sub
stantial expansion. exports of merchan-
disc from New York alone were valued
in excess OF $4,000. 600 and SOS, 900. 900
excess OF imports. money rates ruled
at abnormally asy levels for this period
OF he year and new earning records
were made by railroad and industrial
corporations. 1t was no wonder that
stocks advanced.
Many new high levels were established
In the securities market in the last few
days. while the average for the leading
rails and industrials was near the best
II the year and showed practically a
full recovery from the slump which
accompanied the announcement of the
ierman undeisea raid in waters adj
jacent to our coast. II was n consist
entity strong market throughout the
"tNNt WIN tIt IuDllC IL ldTkt DdItltlnunt
IN the dealings.
1t was a market that was based upon
extraordinary conditions in finance and
trade. But 1t possessed, nevertheless,
the earmarks of weakness. This may
appear p~aradoxical. Prices were moved
up almost without interruption. yet the
market ended the week In a rather weak
ened position.
Market values were not weak. bu,
technical conditions Of speculation were
not so strong as they were the week be
fore. Trader who based their opera.
tons on basic conditions had the strong
est sort Of argument In the money and
business situation for the expectation OF
further Improvement In securities prices
but those traders who bought stocks al
he top Of the week on small margins
and there were many purchases OF IN,
sort. unconsciously may have been oper
ating for the decline.
Danger OF n Heavy Drive.
The weakened technical position OF The
market. however. does not necessaril,
mean that the market liz to fall immedi.
ately from its own weight. But 1t do.s
mean that speculation has reached IN,
stage which would attract a heavy driv.
against prices in the event of some al.
verse development. The mere fact tina,
even the ultra -co~nservative financial I'm.
~terests believe that ultimately the gen.
eral range OF quotations will be moved
well above the current level does no,
warrant the idea hat sharp declines are
not In prospect.
In many quarters of the financial dis.
'rict the belief is growing that ovcren,
thuslastic bulls are extending their ac,
counts beyond the limit OF safety. and
that In banking upon q steady upwart
movement for weeks to come without de-
cided setbacks they are placing them,
selves In a most dangerous position. Or
the advance last week a large proportion
OF the big operators who bought stock,
m the German submarine raid breal
converted their paper profits into cash
while buyers OF smaller financial meant
took their place as the chief bull inter
ests in the speculation. Speculation I!
becoming somewhat wild and man,
traders apparently are riding to Il fall.
With. however. such an exhibit OF i'm
provcment In all lines OF industry as 4
currently reported, and with money II
such abundant supply that bankers ar,
practically forcing ,oans upon foreigr
governments. Il Is difficult to hnd an!
encouragement for pessimism over til,
future OF the securities markets. It 4
only IN the position OF the market itsol
that operators for the decline are war
rsnted in predicting "a period of reac
ton.
Actual value Is growing, and in som,
circles 1t Is thought that the bull marke
in Wall Street IL still In It's infancy
And In those circles active efforts doubt
'ess will be made to bring about a tenn
porary rcadjustment Of market value
TO a lower level for the purpose OF shak
ing out the present weak accounts int
the open bags Of the big men who hav
made enormous profits on recent ad
yances and are ready to add to thei
bank accounts through further marke
movements.