The sun., 1916-12-03
FINANCIAL NEWS
AND COMMENT
Speculative Element in Wall
street Expects Better Prices
This Week.
COPPERs IN HIGH FAVOR
Earnings and Better Feeling
Toward Railroads Cause
Demand for Issues.

Transactions In the two hours OF
business In the Stock Exchange yes
terday were in active volume. with the
general tendency of prices In tho direc-
ton of higher levels in the best part OF
the session. The speculative element.
both In Wall street and without. was
intensely bullish regarding the outlook
for further appreciation In quotations
In the current week. Its expectation OF
rising market values being based upon
the extraordinary position OF trade In
this country. upon the settlement OF
the question Of an offering Of foreign
that although money rates are relatively
high. the position OF money Ii not such
as to restrict In any way industrial
operations.
Weekly bank statement figures.
while exhibiting "A heavy contraction In
loans, showed a reduction In excess re-
serve to tho lowest point of the year,
the loss being based upon Federal Re-
serve Bank collections. heavy shipments
Of currency to the interior and IN
creased payments by h banks 10 the
Sub-Treasury on regular routine opera
tons. Tho loss brought o In cash
from those changes was not offset by
imports OF gold. but II Is probable that
In this respect the statement or sat
urday next will mako n better exhibit.
as more Of the gold received last week
will DO shown. while In addition there
will be available for bank purposes the
$32. 000,0 Russian gold recently re-
ceived In San Francisco. and which Is
now on Its way I o New York.
The statement OF the banks. however
does not suggest an easy market foi
loans In the current week. while there
is no expectation that there will be "A re
turn In the immediate future to the low
rates OF the summer and early fall. ~
a matter Of fact. conditions In the money
market hav changed materially in re
| cent weeks. but that there will be q lone
period OF sustained stiff quotations fol
loans Is not probable. particularly as th'
, business Of the country has hardl,
touched the discount privilege Of the Fed
eral Reserve system, while there Is every
indication that unless foreign countries
arc able to fioat new bonds In this mar
liet gold will come in to an extent tia
will expand the lending power of TN
banks to an enormous degree. II look
as n there might be entirely too mucl
gold for our own good.
Heavy buying was reported In the cop
per stocks throughout the brief session
WITH sharp advances reported In Ana
conda. Chino. Inspiration. kennecott
Granby. chile and Jtan. tue last naine'
moving up more than 3L points. will
buying based upon h expectation o
generous extra dividends for many o.
the porphyry copper group in the curren
week. Most Of the industrials wer'
strong. with especial strength In Ameri
can Hide and Leather preferred, Republi'
Iron and Steel and Cuba Cane Sugar
Among tho speclalties Columbia Ga.
again was n strong feature.
Good buying "as reported IN ~
rails. Substantial interests were &c
, live on the bull side Of standard rail
road issues and the issues OF companic
emerging from reorganization. OF tn
latter Missouri Pacific. Missouri. kansa
and Texas and Rock Island being par
i:cularly prominent.
Sentiment throughout the last wee
has been more inclined to give the ra'
stocks an active position as market r.
,~orites. not only because of the heav!
traffic earnings received. hut also hc
cause OF the general feeling that ~
position OF III railroad business -
this country Is to have n powerful ass,
In the growing better understsndin
between the railroads and the shipper
and greater recognition on the part o
State and Federal lawmakers OF III
need Of constructive policies II law
In behalf OF the rail transportation In
duslry.