New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-13
STOCKS DROP
ON PEACE TALK
Market in Turmoil
Nearly 2,5OO,OOO
Shares Sold

Germany's peace adventure pro-
duced a great commotion in Wall
Street and beyond. 1t was felt on
the Stock Exchange, in the cotton
and grain markets, in the money
market, in the buying and selling of
commercial paper, in the exchange
value Of foreign money and in the
quotations for the securities of bell
ligerent nations.
The effects in these several direc-
lions were Of variable intensity.
They were most acute or the Stock
Exchange and in the wheat market.
Elsewhere they might be called
rather precautionary. or premoni-
tory, for there were few bankers or
others who seriously thought that as
result Of Germany's overtures the
war would suddenly end.
Nevertheless there were some ex-
citing rumors, especially in the for
eign exchange market, where it was
reported that Italy had taken her
heart out Of the war, and that Rus
sia was open to a separate peace
hence, the confidence with which
Germany put forth her proposals.
Allies Notes Show Rise
One Of the most interesting single
effects was the rise Of 1ls points in
the quotation for Anglo-French 5 per
cent unsecured notes, which recently
had been very weak
This advance in response to the news
from Berlin might be construed in two
ways-either as rejecting the opinion
that the close of the war by negotia-
tion had been brought within view, or
that Germany's asking for peace was
a betrayal of an inner weakness which
might be trusted presently to end the
war in another way.
For several weeks there has been a
suspicion that high international
finance was moving to end the war.
But members Of the financial com
munity reacted to the news from Ber-
lin yesterday in an emotional manner
that is 10 say, not as fnanciers think
ing in terms of finance, but as individ-
uals governed by feeling.
Bankers who are pro-German in their
feelings thought it a brilliant stroke
on the part Of Germany and predicted
that the Allies, if they declined to
discuss peace, would find themselves
IN a position Of moral discomfort.
Bankers who are pro-Ally in their feel
ingg thought il was what anybody
might have expected Germany 10 do,
did not consider that the situation was
greatly changed and thought the Allies
would decline to consider peace on
Germany's terms.
Markets Get Shock Early
Trading on the various exchanges
had been under way only a short time
when the news Of Gernany's peace pro-
posal reached Wall Street. Demor-
alization Immediately ensued on the
floor of the New York Stock Exchange
and on the Broad Street curb as own
ers Of securities rushed to convert
them into cash The selling movement
gained impetus as the trading pro-
gressed. Prices Of securities gave way
in all directions, war munition shares,
in which the advances had been the
greatest. suffering the largest losses.
Al the bottom leading issues showed
declines ranging from TO q points.
The selling of stocks was in such
volume that i literally clogged the
machinery Of the exchange. At times
tbe stock tickers ran twenty minutes
behind the market. There was "a flood
of orders in brokers' hands when the
gong sounded the close Of business,
and so many dealings were made Just
m the end Of the day that the re-
norters Of the exchange were unable
70 transmit the sales TO the ticker tape
until long after o'clock.
- The last sale Of stock came out en-
the tame At 3:ls. and at that time the
Continued ON page q. column