The Washington times., 1916-12-03
Wall Street Is Specializing on
Presidents Message to Con-
gress and Peace Talk.
EFFECT OF LOAN WARNING
Bear Pressure Followed Re-
serve Board Announcement,
But Market Held Firm.

nervous strain this week by the
statement of the Federal Reserve
Board with respect TO banks pur.
chases OF foreign loan issues.
While the board made II plain that
Its admonition to the banks OF this
country was In no way directed
against the allies as q measure retail
atory to British and French trade re-
strictions. financial and securities cir
cles we're inclined someShst hastily.
as II now appears, to put an unfayor'
able Interpretation upon the action,
with the result that bear influences
got the upper hand In the trading in
stocks following the brief upward
swing of Monday morning brought
cumuisted over the weekend.
Lack Of Buying Incentive.
As soon as those orders were out OF
the way. prices fell OF. There was
lack OF buying initiative for the re-
nader of the week, because OF the
Intervening Thanksgiving holiday.
ADD settlements were effected not
cases for the balance OF the week.
This left the market to q large extent
In the hands OF the professional ele-
nient, although at 10 time was there
any extended wave OF liquidation.
eesr. the Federal Reserve Board
statement had q dapening effect on
the demand for the loan Issues OF the
entente belligerents.
Prices Reacted sharpIy.
Prices reacted with relative sharp
ness In both the Stock Exchange and
on the Broad street curb In City of
Paris 6's, the new Russian 5h's,
United Kingdom SIS. the French
municipal SIS, and so on. As the week
advanced q better tone In these Issues
developed with improved sentiment
among the rank and file Of Wall
street with respect to the disinter-
tbs bears seized the opportunity TO
exert further pressure, the market In
both stocks and bonds may be said to
have withstood the pressure admir-
ably; On the other hand, Il was an
Dounesmsnt ' % the British '"f n.eai
agents here TO the effect that the gov.
ernments OF Great Britain and France
had instructed them to withdraw the
would tend TO restore buying conn.
donce In the various foreign ioan
beads already In this market.
Much Peace TEX.
Peace talk was again in'the ascen.
bsiiigerent powers are seriously con.
sidsring peace In the near future. It
Ia without doubt that the leading
statesmen OF Europe. beiiiserent Is
we'll as neutral, are thinking busily
along those lines. This II a factor
that must henceforth be taken into
account as an economic influence.
Ambassador Gerard's impending re-
turn TO hts post at Berlin with the
xflA n
stake between this country and Ger
many freshly In his mind, will doubt.
less tend TO n better understanding
between tho two nations. improve.
msnt already being ,. to some
The Presidents forthcoming mes
sage to Congress- 10 q subject OF In.
tsrested speculation.
Mezicsa situation Improved.
The situation In Mexico has I'm.
proved from the point OF view OF this
country, inasmuoh as the Bandit
villas operations In Chihuahua may
open the way for cooperation OF
General Pershing's forces with the
troops OF General carranra for the
suppression OF that leader, and a pos
sibie better. understanding with our
Tood price. and discussion Of en-.
barge legislation has occupied much
thought recently. IL 10 probable that
something Will have 70 be done, but
the issue 10 full OF difficulties that
csdure.' The hitch In the plans OF
bankers to offer treasury bills OF
England and France here may result
in further heavy importations OF gold.
Canada shipment s2S.ooo,ooo.
The movement OF gold from Canada
this week totaled In the neishborhood
OF s25,000.000. and there IL consider.
able talk OF a continuance OF ship
ments. although nothing dennite IL 20
be obtained on that point at this time.
Among exports OF the precious metal
from the United states were ship.
ments 70 Peru and to spain. as well
count TO Canada and TO England d.
rect.
Railroad earnings for October were
high throughout the week, In
s,%d M Y ses PsnIsyiVsn,f
ern Pacific, Canadian Northern, Chesa-
psake and Ohio and others. Many OF
these roads showed substantial gains
in gross returns, but small losses, In
attributed TO equipment buying on a
generous scale and the increased cost
OF many materials, as we'll as TO com
parison with a favorable period for
the roads last year.
Increased Industrial Earnings.
Increased earnings were reflected
among many industrial corporations
by many increased, resumed, or extra
dividend disbursements. notably e, !.
du Pont de Nemours q Co., which
brought it's total payments this year
10 100 per cent.
Movements In metal prices were
signalized by a continued advance In
American electrolytic copper In Lon.
don The price level established a
high record there at f17O a gross ton.
The demand for both steel and copper
from abroad and from domestic
sources continues urgent, despite the
rising prices for not only copper but
pig Iron and the finished products
themselves. The market has reached
the point now where the main consid-
Grafton IL to get the metal at most
any price for delivery throughout
next year and we'll into 1918.
With the events Of a broken week
as a guide II 10 not easy to prophesy
what the immediate future holds for
the stock market. The technical po-
sition Is supposed to have been much
improved with the increase In the
short interest. Although there was
no extended period OF liquidation there
was not a little movement to close
out accounts. over the Thanksgiving
recess and In some cases for the bal