The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-05
FINANCIAL NEWS
And COMMENT
Light Sales Depress Stocks
While German Note Ia
Awaited.
HEAVIEST IN LAST HOUR

Pending tho communication which the
German Government had been preparing
for n fortnight in response TO Washing
tons Nna' declaration on the conduct OF
submarine warfare against merchant
shipping. Wall street had yesterday "A
more distinctly waiting stock market.
selling IN moderate volume was con-
Quoted for both accounts Tt" more
speculative descriptions were naturally
subjected TO tho bulk Of the pressure,
which was obviously in the { Of
precautionary liquidation combined with
some not very venturesome bearish ex-
rerimeuts.
~ the outset rrlccs displayed rising
tendencies, hut the only continuation Of
advancing strength Vas in Il few indus
trial sp.cialiies. Conspicuous among
these was United Fruit. concerning which
rumors circulated OF important accumu
iaiion similar to the recent buying in
tile Mercantile Marine Issues. The gen
cral market halted very quickly In the
early forenoon and after saRgirg through
the midscssion In n Ncsitating fashion
u turned rather heavy in the last hour
selling was more active then ana l"qs
Elective resistance was offered, This
was u development clearly indicative OF
speculative uneasiness provoked alto
cether by the persistent tension Of in
tcrnationai uncertainties
ABOUT the most significant feature Of
Tho trading was It's diminished volume.
This implied n decided reluctance to
! undertake any very extensive anticipa-
tons OF the Berlin reply 10 Washington
or its sequel. On the constructive side.
SO FAR as new commitments were con-
cerned. II was the prevailing view that
potential buying had better take the
nance Of losing a rally than risk being
involved In a decline. Traders OF bearish
proclivities were equally i~ndisposed to
make any extensive new engagements.
The possibilities of an emphatic market
wise response to the events OF diplomacy
seemed to he well calculated.
So far as regards the status Of the
German difficulty II is doubtful II the
stock market session was significant OF
any very definite expectations. The
idea prevailed that the German response
would make it very difficult; for a breach
of relations 10 occur merely on the
strength Of the reply itself. AZ the same
time there was a notion that the con-
,roversv might remain y straining innu-
ence If a breach Of relations should
thereafter depend on another submarine
action in the category Of Germany's
past offences. Perhaps II anything was
cnoted by the stock market session IL
was a feeling tina, the controversy would
he left h.! the German note IN precisely
such n state of persistent uncertainty.
incidentally no little curious interest
was expressed In the rumor which spread
from abroad that President Wilson had
been or was about 20 be approached
with German PROPOSALS for the naugu
ration OF reaC" negotiations. The stock
market lid not pay any obvious atter-
ton 10 this matter. although comment
lNclt on the delay Of tho German re-
ply and the extraordinary secrecy with
which is nature had been protected, and
in some quarters wonder was expressed
II the German note might not ontai
a surprise such as n proposal Of peace
overtures based on tho opportun!ty az
forded by President Wilson's assertion
~ the principles of humanity and thu
right' of neutrals.