New-York tribune., 1916-07-04
MARKET NEWS
AND COMMENT
War Stocks Display Early
Weakness in a Dull
Session.
MEXICAN OUTLOOK
is MORE HOPEFUL
Proposal 10 Tax the Munition
Manufacturers Hits the
Special Issues.

Arathetic conditions that have pre-
vailed in the stock market for some
time OF late we're acoentuated yesterday
by holiday considerations. With large
portion Of the speculative following ir
the Street absent IN anticipation of TO
days Fourth Of July recess, interest ir
securities was at low ebb, the turnover
Of stocks contracting 70 less than 25o..
900 shares. the smallest total OF the
year
Despite the general dulness. the ma
jority OF the standard issues, however
registered net gains on the day and the
war stocks. whose action at the outset
reflected continuation of the selling
movement of last week, recovered
GOOD part Of their early declines. Mexi-
can shares led the improvement IN the
closing hour on limitations from Wash
ington that the expedtionary army
sent into Mexico to punish Villa might
be withdrawn with It's task unfinished.
This tended 70 generate increasing op-
timism over the Mexican situation, and
according 10 the Streets interpretation
meant that the matters At Issue be-
tween the two governments would prob
ably be settled without war.
The days session on the Exchange
was divided into two quite distinct
prico movements. War issues, zinc
shares and a number Of the Industrial
specialties. the group including such
stocks as United States Industrial Al
cohol. Crucible Steel, Baldwin Locomo-
i've. Studebaker, Maxwell Motors
American Zinc and Butte q superior
sold of rather sharply for the time IN
tbe forenoon. several Of them touching
new lows for the year. On the other
hand the railway shares and United
states Steel held firm on small scale
activity The decline in the war stocks
was naturally associated with the rev
enue bill introduced in Congress at the
close of last week. providing for the
ironc sition Of a special tax on prohts
OF munition concerns.
While the terms Of the proposed tax
are more or less vague and lnvolve 'he
Ievving of a tax Of from . to per cent
on the gross receipts of munluon-maK.
ers after an allowance OF net prohts OF
10 per cent on net capital, the sugges-
.io1 was enough 10 alarm spectators
in the war stocks who already nave
lost much Of their former entnuslastic
regard for these issues. yesterday :
dip in the zinc shares occurred sIhul
taneously with q sharp drop IN 'he
price of the metal in London, wnere ~
/ was reported $50 a ton lower. In thls
market 10 cents pound was quoIeGo
compared with recent price OF 10
cents and a high level during the war
neriod of better than 90 cents. Spelter
has been adjusting itself 10 the ne"
basis Of production since early IN the
year s..
ed in two directions the old line dlvl-
dend having rails and industrials made
a favorable impression by displaying a
firm tone most Of the day, and wnleh
developed into real strength az the
close Those stocks in which there ls
tbe possibility Of dividend resumption
or increased division Of profits with
stockholders were strongest. Among
The rails Southern Railway and Union
Pacific were noteworthy features, while
United States Steel led the industrials
with a substantial fractional advance
above SC. Bonds were quiet and gen
erallv steady. with the Anglo-French 5s
holding AZ the price established az the
close Of last week. The current firm
moss Of this issue is associated with
tbe success Of the Allies in their new
offensive Railroad earnings contrib
uteQ toward helping sentiment with
tventy-two roads reporting for the
third week Of June showing an IN
crease OF l451 per cent IN gross over
year ago. 49,
The optimistic statement Of Judge
Gary Of the United States Steel Cor
nors+ion on the state Of the industry
did not come until after the close OF
The market. His remarks bear out
what the steel men have maintained all
along that the steel business IN the
United States for domestic use and for
oxport is better than ever before, with
larger production, greater profits while
the workmen are receiving high wages
While earnings for the current quarter
have not vet been made up-they are
.i., utt. toward the close OF this
month Judge Gary said that 1t now
seems apparent that they will be in eX-
cess Of the record earnings OF the hrst
quarter Of the year, which exceeded
the S6O,0OO,0O0 mark.
The money market continued TO re-
feet the semi-annual disbursements
with call money holding at per cent
and higher. Fixed date funds were dull
and unchanged. Holiday dulness char
acterized the dealings in the foreign
exchanges with practically no changes
OF Importance from Saturday.