The sun., 1916-08-17
FINANCIAL NEWS
AND COMMENT
steel Common Climbs to the
Highest Point Recorded
Since 1909.
PUBLIC A HEAVY BUYER
BuOyant Feeling Prevails. as
L. s. Trade Is Believed to
BE on Sound Basis.
PUBLIC A HEAVY BUYER

Evidence of public participation II
stock Exchange operations was pro
scented throughout yesterdays session
There was n heavier volume of bushes,
FOR this account than had been recorded
In many months. while II represented tn,
most impressive sort OF buying rather
than a general scramble or the part o
the financially weak TO get into the maj,
ket MI small margins.
Relatively II was not an active publ,
movement. but II had the indications o
becoming a big speculation. The create,
part OF the total operations vas provided
by the professional element, which wa,
decidedly bu.lish because 1t was known
the substantial banking interests were 1t
favor OF higher quotations. In part he
cause they desired "A buoyant market fol
the reception Of the $3.50. 100000 British
loan and In part to their belief there
would be no railroad labor disturbance
and that basic factors warranted apprc.
citation In financial values.
Although the collateral against the
British loan will include only 500, 900.
600 In American stocks and bonds. II Is
understood the arrarg sments OF Ameri.
can bankers with the British Govern.
ment preclude further active liquidation
OF foreign held American securities, for
the presen; at least. while under the
terms OF the financing It is understood
but not publicly stated. that the proceeds
to the last cent will remain In this coun.
try for the sole purpose of paying for
Great Bri:ain's war purchases he re. Ex.
cepting the Anglo-French loan. 1t Is the
greatest piece Of foreign financing ever
attempted In this market. II affords ex
ceptionally good security for inve stment
funds and its Offering In this country
naturally should be considered a bullish
influence on the stock market.
A few weeks ago doubt existed In the
minds Of man people regarding further
expansion In our Industrial activities,
but recent developments have clea red up
'he uncertainty and have provided an
excellent; argument for the purchase OF
sound stocks and bonds. which In spite
of recent advances still are selling ms "A
rule under their intrinsic worth. Take
.or instance the steel trade. The leading
authority says that the distinct change
which came with the closing OF the
FIRST OF the large war orders and other
export contracts late In July has now
developed into a volume Of domestic
buying such as has no. been seen in
weeks. with the buying on war account
moving to large proportions. 1t is no
wonder that the steel stocks W. e strong
yesterday and that United States Steel
common rose to the highest po!n, re-
corded since 1909. And in 1909 the is
sue was not worth intrinsically any
where near AS much as II Is to-day.
FOREIGNERS are prompting the steel
capacity OF American mills far into 1917.
And they are making signs they will
want a large share Of next years pro-
cuction from our cope mines.
II Is o unique and extraordinary situa-
ton no matter the angle from which II Is
viewed. A great countrywide railroad
strike would upset things materially for
a time. but apparently the magnitude OF
the consequences involved is n safeguard
against It's development. Wall Street
took thai view yesterday. More than
10000 shares Of Reading. more thai To-
900 OF Cnion Pacific and more than 5000
OF New York Central were dealt in on
rising prices after the marke; had re.
covered from early disappointment over
the announcement the labor conference
had been postponed until to-day.
In bonds expansion in the volume Of
business was reported also. Doth in the
trading in the Stock Exchange and over
the counter. n according to Wall stree;
houses the actual investment demand
and the senl-investment inquiry pre-
scented appreclable improvement.