Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-10-07
WALL STREET MARKET
MAKES SHARP RALLY
Opens Firm, Weakens Under Pres
sure, While Steels and Munition
Shares Lead Recovery.
Southern Railway Comes Into Proni.
hence With a Three-Point Advance.
Gains in Last Halt Hour.

! NEW YORK, october wall street
swallowed peace rumors, cables and all.
but the real facts of the case are that
the street has no more faith in the
present reports of peace rumors than
1t had when it smashed the entire mar
ket. and especially the muniton shares,
months ago on similar rumors.
But the stories of peace were well
coined by the street as a great aid to
the efforts of the professional element
! in their efforts to smash stocks and eX-
aggerate them in the same interest.
/ The street is full of bull traders, pro-
fessionals who took their profits on
their stocks two weeks ago, and have
not been able with all their bear ef-
| forts to bring about a sufficient reac-
stocks-the pubic has beaten the
bears efforts, but the peace story had
| its effect
| AS usual the opening of the market
was with rush and a hurrah. and as
usual the first half hour of trading
found the list weak and on the down
grade with more or less activity. fol-
lowed by an effort on the part OF the
bears of yesterday to cash in thelr
profits, which gave the market bet
| ter closing and run prices up on them
Slow Most of Session.
| During the greater part of the two
hours session the market continued
to drag in an uncertain manner, maxi
ing some recoveries here and there
while the lows established showed
average recessions of " to point.
In the last half-hour of the session
the market came strong, active ana
higher Spurts of strength showed
here and there, especially in the steels.
Baldwin Locomotive, Crucible Steel.
Republic Steel. Industrial Alcohol in
the industrials and Southern Railway
in the rails moved up in most salts
factory manner to their supporters.
The gain in Southern Railway from
a low at 26A to high at 2S12 was
so marked as to cause much comment
In the other shares the gains
common about a point. Mercantile
! Marine X and Central Leather 2S.
Peace Rumors Affect Prices.
The most interesting development of
another active stock market week, in
which daily dealings again ranged from
1,000, 900 to almost 100000 shares. was
the intimation which came yesterday
from influential financial sources to the
effect that peace overtures from Ger
many would soon be inaugurated.
Declines of to points from high
levels followed the circulation of these
rumors. stocks and other industrial is
sues deriving special benefit from for
eign contracts being most affected.
Rails. except minor shares which had
shown unusual strength and activity
during the preceding day or two. yield
ed to 3 points. and the list as whole
was decidedly unsettled. though far
from weak.
interest was evinced in the wide char
acter of the trading, which comprised
a greater number of issues than ever
before. This was accepted as further
proof of the general demand for Sc
curities, although this found only par
tial reflection in the bond market
Strength of High-Grade Rails.
The free absorption of the city Of
Paris f1fty-million-dollar loan. which
was several times oversubscribed. in
dicated. however. that the amount Of
money available for investment pur-
new securities.
some of which registered best quota
tons for several years, was directly
traceable to additional statements of
earnings issued by leading systems,
nearly all of which were remarkable
for their gains.
Point was given in this connection to
the report of the interstate commerce
commission, which received returns
,, from lbo railroads for August. showing
an increase of over $4,000, 900 in oper-
ating revenues and a gain of almost
$40. 100000 in net income over the cor
responding month of last year.