The sun., 1916-12-12
FINANCIAL NEWS
AND COMMENT
Prices Fade as Money Rates
Rise, Bears Attack and
Weak Holders Retire.
COPPERS AND STEELS HIT
Public Holds Back With FIX
p~cctation Of Buying at
Cheaper Figures.

Temporary withdrawal OF various
lenders from the call money market ex-
cept at higher rates and further dis
elimination against Industrial collateral.
backed by liquidation by operators, who
sold stock to protect their commitments
In a rapidly declining cotton market and
by liquidation OF weak accounts because
OF loan readjustment. encouraged heavy
professional pressure against prices In
the Stock Exchange yesterday. with the
resultant eject OF materially lower quO-
tations ut the close. In addition, bearish
traders found In the absence OF an active
public demand. In reports that the Brit
ish Government would not renew shell
contracts In this country and In their
own misconcep.ion of the action of the
British Government in prohibiting fur
ther market dealings in copper In Lon
don adequate arguments for their oper-
atoms against prices. And the sub
marine situation was twisted into a bear
card also.
Call money was puts out as high as
10 per cent. in the day. with the greater
part OF the business. however. well under
that figure. although at "A level which
caused something akin to establishment
In the speculative community because of
-, 20"
there appeared to be no legitimate rea-
son for the advance. as excess reserve
Increased last week upward of $33.-
100000 TO almost $4,000. 900, but ac-
cording to some bankers the movement
was justified by an unusually heavy be-
berInnlng NJ nrena ra,ions FOR tho ananno
inc Of III. hn,vy J.n,arv i,,,r.s, "a
iyidopd naym.nts arJ h,, , 5osira -, ~.
rar, n, ,ho iarg,. ,n,ora.,s ~ dIs,a"ame
an active hui snacu,a,ion In s,ocLs Tor
tic prcsert nj least
MANY traders. howcver rcf,sed IN no.
cent of Tho sor, Give, ,rc-
ferrin. to ascribe the money advance IN
nlans for tho .c,umu,atio, 90 .,ocks a,
lower levels Tho hanks .nn.ron,n,
knew what thcy uerc ,bou, in r,is,nr
money ratios. which extended 10 tine
funds and hank accen,apr.s az. u.n bu,
the movement nroyided a curlous com
mentarv unon tho ,erer,I la ,Lir, n,s,-
ton. which il intrinsic,IIy sound and
upon the difference no, ween he New
York and London money markets opon
market rates in the Bri,ish canital ruI.
| ing under our own ouo,at,on
Falling prircs for stocks ala M, no.
| conpany importapt outside Ii,uida,ion
while, on the other hand. purcba .es we're
, made on The derIine Tor tho ,cc,,,,, NJ
substantial commission house interests
Rig public holders of stocks strengthened
their margins rather than reduced their
accounts. the chief selling coming from,
the professional element. from small nuh.
lie operators who became apprehensiyc
because of the strength IN money i'm Tho
face of n favorable bank return and be-.
cause of TIE decline itself and from over.
extended spectators in the commodit,
markets.
No change was repor,cd In underlying
conditions affecting the actual worth n,
securities, while. as "A matter of fact
the general situation presented nothing
but encouragement for those persons who
believe tina the strength OF Fundamentals
il not to he weakened IN the immediate
future, and that eventually il will he re-.
Elected In higher stock market values.
Net losses of y point or moro were
made nv many Of the war indus,rials
the coppcr shares and tho steel issues
United States Steel declining In the face
OF the largcs; repor,ed untitled order.
in the history of the corpora,ion I,
simply was a question of the SUNNY q,
stock being In excess Of the deuand
,,i,b ,bo ,r,f,.to,,,, .n. 81