The sun., 1916-08-23
FINANCIAL NEWS
AND COMMENT
Market Again Advances,
Though Prices Are Not Be-
yOnd Investment Values.
YEARS BIGGEST TOTAL
Predictions Of Par, 40 and
Higher, Made for Steel
Rails Are All Strong.

Certain Observer of market move
ments who invariably refuse to admit
the pubic has anythin; TO do WIZ a
bull market In its early ages insist
that the present Toward movement In
prices Is based wholly upon the opera
tons of professional Wall street. AZ a
matter Of fact. however. the iNblic Is
quite an important factor In the current
advance. but II Is "a financially strong
public which not only is buying stocks
on big margins for speculative profits
but is buying also on the basis Of perma-
nent holding.
The weak outsider who generally buys
at the top has not yet made his appear
ance. Those who said that yesterdays
active market-the biggest market this
year. with sales exceeding 100000
shares-~as inspired entirely by the Cro-
fcssionsl element simply were not well
informed regarding the character OF the
days trading.
II was a market In which there was
greater outside participation than on any
preceding day in the current year. II
was a market which had the backing OF
the substantial financial interests, who
apparently found In tho railroad labor
situation and In the many favorable fac
tors underlying the intrinsic worth OF Sc
curities adequate argument for using
the power OF their resources Tor the cs-
Enlistment OF prices upon "A higher level.
They did not. however. look with favor
upon the suggestions heard In some quar-
ters that the market was about to be-
come a runaway affair. They were not
willing even to admit that such a market
could develop, hut they urged their
fr,--r. .. IL 80 ltvlA- rio
to convert paper profits into cash. on the
thea that a reaction was overdue and
that opportunities might lie afforded fri
the accumulation OF new accounts al
cheaper market valCes.
Talks with bankers created ;hc inspires
sion that the brakes would he put OF
tight upon indications Of dangerous spec
ulation. The banking community faror'
caution. and II believes that the advan''
so far recorded will bring more none.
into legitimate investment operations
that the great profits which have bee'
made In various business enterprises II
recent months will move into high grad
securities for actual investment accoun;
So far the bull speculation. in most In
stances. has been conducted In an orderl.
manner. There has been no boosting o
prices to fictitious levels. /, - c%onceiv
able. however. that may come later II
spite OF efforts to IT. event u Z "a move
ment. hut according 20 present indica
lions banking power will be exercised I
tho limit to eliminate manipulation AM
crazy public speculation.
Current conditions analy zed do no
bear out the theory tha; Yesterdays al
vance carried prices too high as a meas
ure os actual Investment value. Unite
States steel common moved :, u ue'
high record At 91l.. That, price is htc
only in comparison with the quotation 8
days wlen the issue was out Of the div
dend class ard IN subsequent days vine
few people realized the growing wort
" The issue based upon the earnin
power 81 the Steel Corporation. Their
are sound reasoning men H. the stree
wlo eay par would br n fair marHe; priJ
for steel cummor Thee are Other me
IN the Street who predict 10, and ST.
offers who say IN" stock viii cross IN
rie'errcd. which is quoted "a; lis. ppe
ators who buy steel a crescent pIics
and on possible further advances may a
well bear IN mind that there Is a va
amount OF the stock which could
thrown upon ,hc market.
Although Steel again was the ON
standing feature of the trading, SO "a
as the volume Of business WAS cot
'tTI'tu, i've St'tNeln III INC laliI't
shares was the most impressive flCtt
In the days operations. When sur
stocks as New Yorl; central. Inlo
Pacific. Atch!son. baltimore and OH
Pennsylvania. Reading aud eve
the Fries, exhibit Signs OF lie IL ma
he concluded IA h 9Th grade buytI
IL I'm progress. The railroad labor 20,
,roversy until yesterday had chcckS
. activity In the rails. Advices fro
1 Washington int!matcd a solution Of Il
dispute.
Railway equipment shares we
:. strong features and he coppers we
firm. The only weak spot Wis provide
4 by the motor shares, which sold G
under bearish pressure. many we;
accounts being brough, out. especial
in Wiilys-Overland. which was adverse
affected by announcement of new hnan
ing for the company.
Investment buying outside the @
change was In fair volume. bonds
: the exchange we're moderately acti,
, with active buying OF the Anglo F'ren
/ IS, which closed f~ractionally above Mo
days final.