New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-16
Further Declines Re-
suit from Wall St.
Discussion
MARKET RALLIES
AFTER DISORDER
u. S. Steel and War Stocks
Again Hit-Cereals
Are Weak
By GARET GARRETT

BY GARET GARRETT
In the thoughtways of business and
finance the idea of peace was further
yesterday. The refexes
were:
IA combination Of liquidation
On the New York Stock Exchange
at the rate of 650,0O0 shares an
hour, to a point at which danger
Gus Generalization seemed immi-
nent, whereupon steps were taken
to arrest the fall of prices.
"A further violent decline Of
cereals. especially wheat, which
fell 13 cents more per bushel.
"a notable rise in the ex-
change or dollar value Of the
money Of all belligerent countries,
especially the German mark.
4-Rumors. partly confirmed, of
concessions in the offering prices
of basic materials, like copper, and
Of the failure TO close foreign con-
tracts which were lacking only the
formal inscriptions.
5-Increasing practical discus
sion Of the effect of peace upon
American industry.
Wall Street Viewpoint
To certain type of financial mind
the elements of the situation are sim.
Ply these;
Everybody wants peace, if way
can be found. Germany proposes to
talk. Something is almost certain to
of a proposal to discuss what
everybody wants. 1t may take time
more or less, but the wedge has en-
tered. A powerful blow on the head
of the wedge may be delivered by the
American government. One must
wait and walk warily.
1t is noteworthy that sentiments OF
this order we're expressed yesterday
in places where no one could be sus-
pected OF pro-German sympathies. IL
is striking also that finance has at
tached more significance to the state
ment Of Bonsr Law. the new British
Chancellor OF the Exchequer, in the
House Of Commons that:
1--WE cannot continue at the present
figures indefinitely All we can hope
for is that We can keep at that figure
long enough to beat our enemies, and
believe VIC can go on long enough to
make sure that it will not be from
financial causes If we fail 10 secure
victory
And to the statement in the same
place by MI hcKenns, the former
Chancellor OF the EXcnequer that
at will not be easy to convert ster-
ling wealth intC dollar wealth. We
must pay in dollars for what We buy
now, not only in America, but all over
the world. and that is the limit Of our
power 20 pay the Allies
Peace Belief Widespread
Among the bankers directly ssso-
ciated with Allied finance i'm this coun-
trv there WAS no change Of view. They
continued TO insist that no terms
likely 20 be proposed by Germany
would be acceptable TO the Allies, but
outside Of this group the change OF
sentiment from a first DISBELIEF in the
possibility OF peace 10 working
thought Of both peace and its conse-
auences was ono Of the positive de-
velopments OF the day.
How far the spirit OF hesitation has
touched business cannot he determined.
The secondary effects arc more per
ceptiblc than tho first, and those have
not vet had time to appear. Brad
streets Weekly Review to-day Will
say:
Gormany's peace proposal thus far
has not cXerted any particular effect
upon either trade or industry. though
il has superinduced sharp breaks in
stock market As well IS i'm cereal and
-four prices and brought greater eau
tion among financial interests. Incl
dcntallv. more conservative under
tone seems to be developing in other
directions as regards far future trade
and naturally there is considerable
discussion as to rcadjustments if ne
gotistions looking TO peace actually
come TO pass, although at the moment
i, - doubted that feasible basis for
a speedy settlement will readily be
found
"Dun's Weekly Review Of Trade will
say;
Foreign developments have accent
uated the tendency toward wholesome
conservatism. without affecting the
progress Of finance or lessenlng the
volume OF tran ansactions IN trade and
industry. and recent speculative read
iustments have made the general out
look distinctly clearer. Prices, more
over. no longer are soaring in nearly
ali lines. though strength continues
nronounccd in many quarters, and
buycrs. while operating with sus-
tanned confidence. give more consid-
Grafton TO the element of cost IN
making commitments for the future
hctivity in some branches has sub
sided.
Wild Disorder Rules