New-York tribune., 1916-02-28
Tension Over Submarines
in Washington Disturbs
Stock Market.
BONDS MOVE SLOWLY,
WITH PRICES STEADY
German Exchange Falls Lower
While Sterling Is Kept Up
Without Difficulty.

The question OF Germany's use OF
submarines in warfare. vexed for
months. held down trading for the
first two days Of last week and caused
a heavy decline on Thursday. Wash
ington dispatches on that day told OF
our national legislators OF the Presi-
dents own party so disturbed over his
insistence on the rights Of our people
that they threatened to pass a resolu-
ton warning against travel on armed
merchantmen With such furry in
Congress, IL is no wonder that stocks
went lower
Selling did not reach any great
amount, but did include a good deal
Of liquidation by apprehensive speoula-
tive holders. How much this further
reduction Of long accounts has lessened
the burden of an oyerlsrge aecumula-
tion OF speculative accounts waiting op-
portunity to sell at higher prices re-
mains 10 be seen. 1t Is possible that
more extensive decline than that OF last
week IS needed In these times OF ample
margin TO clear the books OF tho com
mission houses and put the market IN
healthy condition sgain. The point or
two recovery on Friday, though lost the
next day because Of the German sue
cesses before Nerdun, came easily. IL
is a question. however. how much stock
would be offered were higher levels
reached.
While bond prices hold fairly steady
on the stock Exchange. investment de-
mand is not particularly keen. Inc
bond market cannot be said 10 be nat
tened out. but il makes very poor com
psrison with that of few months ago
A large amount OF new securities nave
been issued which have not yet been
placed with investors. European Of
ferings are large and are accumulat'ng
in the investment houses.
The disturbed condition OF our in
ternational affairs tend TO make pur-
chssers cautious, even though II has
not meant any particular increase in
offerings. The coming Pres Dental
election is beginning 20 cast its shad-
ow on the investment field. A national
election usually means some measure
Of unrest and apprehension. lhlS year,
with such important questions OF m
ternationsl import unsettled, may well
be no exception TO the rule.
General Business Good.
General business conditions, which in
their improvement are adding stability
10 much Of the advance of last year IN
security prices, gave no sign OF set,
back. In mary lines the volume o,
business is limited only by the sellers
willingness TO furnish supplies. The
steel trade is congested with orders,
and purchasing Of pig iron has i'm
proved. Plans for new construction are
heavy as spring approaches. Around
New York City and in New England in
adequate transportation facilities in
terfere more or less with building
projects. but in other sections, where
terminals are not so clogged with out
going freight, this is not so much Of a
drawb back.
The opinion in the Federal antitrust
suit against the American Can Com
pany. which had been looked forward 70
AS providing further favorable inter
probation Of the Sherman law. did make
plain that mere restriction of trade IN
forming combination was IN itself no
ground for a decree in dissolution. IN
fair practices at the present were not
found. and so the court held it unwise
TO destroy so finely adjusted an indus
trial machine. That the strength OF
the company acquired in its original
combination may not be used improp-
erly. the court still retains the jurls-
diction Of the case, thus putting the
company, as it were. on parole.
Railroad revenues for January. which
| began TO be made known last week, con
+ tinue large. The gains over the year
/ before are not so pronounced as IN
previous months. as the depression that
followed the outbreak of war had less
ened at this time in 1915. tXpendi-
lures for maintenance tend 10 increase,
and this. with expenses that came from
more trying weather, gave net earnings
that made less favorable comparison
than gross. Railroad stocks held fairly
steady, and even had little upturn on
Friday, but still are only a secondary
feature on the exchange.
War and Neutral Trade.
Great Britain, In appreciation Of the
6elicacy Of its task. has placed a min
ster in charge Of the problem of keep
ing goods from reaching her enemies
This j. 81 difficult question Tor that
country. The iron ring around the Cen
tral Powers is broken by the neutral
nations Of Holland and Scandinavia
To preserve an appearance for regard
Of international rights and at the same
time to keep up the pressure that Is the
Allies most powerful weapon, through
depriving Germany and Austria OF
needed material. is no easy task.
II is not only in keeping from trouble
with neutral states during the war that
England must exercise caution, but she
must. so far as possible. avoid estab-
fishing precedents that afterwsrd may
work 10 her disadvantage. She is a
great trading nation, carrying in yes
sells under her flag a large proportion
of the worlds ocean traffic. Apart
from the present emergency. Grea,
Britain's natural desire is that peace
ful trade should proceed with as little
interference as possible.
In explaining the British govern
ment's intention toward the course OF
sterling exchange here, the Chancellor
of the ESchequer pointed out that the
present discount was desirable as tend
ing TO make that country's purchases
Tor import more costly without. under
present rates for freight and insurance,
making shipment of gold from London