The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-18
FINANCIAL NEWS
And COMMENT
War Stocks Arc Conspicuous
Features Of Weakness in a
Heavy Market.
AN IRREGULAR RALLY

There were peculiar features in yes
tcrday's stock market which prevented
the weakness displayed during the
greater part Of the day from being
wholly attributable to the particular fac
tors OF uncertainty In our intcrnational
relations which have undoubtedly ex-
ercised a good deal OF depressing in
hueiice on the general share list. Weak
ness was most pronounced in several
or the more conspicuous representatives
Of the so-callcd war stocks, while the
rails aud most of the STANDARD Industrial
INSCRIPTIONS displayed a fair degree of
underlying firmness. At the sam time
the action OF the market as a whole
was such, despite r~allying manifesta-
lions in tho afternoon. as ~ suggest that
quoted values were remaining more or
less subject and sensitive to develop-
ments IN the immediate diplomatic
crises represented by the Mexican and
German questions,
Fnat The moderate recovery toward
the end OF last week had not been cs-
pecially significant was Indicated i'm the
eirly dealings. Under the leadership of
some OF the stocks chiefly affected BY a
Mexican interest the list made "a dis
pay of rising strength at the opening,
nut advances did not last long. Active
stIi'ng pressure was applied and con-
tlhucd rcrSistcntly throughout the fore.
noon, aud under the weight of sales sub
sttntial declines were forced In many
directions. There was "A cessation If active
nquldiuoh and speculation FOR the decline
III w" afternoon, but the rccoveries which
TOOK place before the close were MOI al
together convincing. because they seemed
60 he owing in the main to a suspens,on
OF sales.
Io'al transactions marked a decrease
from ule maximum volumes attained
last week. when tho new downward
movement OF the market was started.
ana this was a favorable circumstance
Incidentally the market was brought into
an interesting position by the course OF
prices, FOR tho average of representative
shares was carried dow to the previous
low levels Of the year reached AT the
emu OF January and again AZ tho begin
Nihg or March. In both cases the de.
'''hc was arrested at this level and was
Su'c"T ded 10y a more or less extensive
uiturn.
The net result of the u adiuc was an lr-
l'gular array of price changes. Various
uh"us'TIaI speclaltics. some Of them in
the wal stock group or related 10 il.
ended with m0teria. gains. The war
order lis: was. however. the weak fca-
'ure Of the market, presumably because
'c'hnIcaIly this has been the weakest
quarter. Liquidation of these volatile
siccIaiti"s was obvious. but IL seemed
TO t~ induced by speculative operations
stimulated by recent statements imply
ing a prospect of diminishing contracts
Tor military supplies. Generally sneak
ING the action of the war stocks could 10
explained ~ the markets response in its
most vulnerable directions 10 the dublous
aspects of the foreign affairs which have
been giving Washington so much con-
corn.
The Mexican muddle was not looked
upon as quit. 60 disturbing. Although
the financial community was rather in
c~redulous of the reports of Villas death,
II was taken for granted that Washing
ton would be disposed to seize any on
n~ortunlty which offered to withdraw
from the embarrassmerts Of the Nexi-
can venture. II was the nature of the
adviccs from Washington about the new
note which the administration has been
preparing FOR German consideration which
held the stock market in a depressed
state of check. Wall street was scep-
tlcdl ahout the reports that the note
would he something in the nature of an
ultlmatum, but II was not inclined To- do
any dlSccuntinS along the line OF sccp-
ticism.
French exchange exhibited Increased
strength in reflection of the assurances
that arrangements for tho establishment
Of additional credits here nrr. making
progress. Thu disclosures made al the
annual meeting of the United States
Steel Corporation furnished some CON
crete evidence OF the processes which
have affected the foreign exchanges
ana contributed to orr export
trade. II was revealed that i'm Tn. alb
s"rntion by our markets of American
securities returned from abroad there
was included ia the past year more than
half of the United states Steel onmon
shares. which Europe had owned tho
total foreign holdings a year ago being
more than 20 per cent. of the common
stock capitalization.