Evening star., 1916-01-07
STOCKS WEAK EARLY,
BUT MAKE RECOVER|ES
Foreign Selling Shown by Strength
in Sterling Exchange-"No
Imitation in Banks"
Steel Common Firm Under Pressure.
Shorts Covering Cause Very Gen
eral Improvement.

NEW YORK, January THE stock
market was decidedly nervous, prices
were erratic and reflected the unsettled
views of traders. The effect of Judge
Gary's talk was partially counteracted
by a statement made by F. A. Wander
lip, president of the National City
Bank, and published in the morning
papers in which he declared that, IN
SO far as banking in this country was
concerned, there was no imitation.
Coupled with Judge Gary's remarks
as a potent influence in the market is
the continued selling of American
stocks by the English government
stocks that had been lodged with 1t by
holders under recent calls. That this
selling was a potential factor OF the
market is further evidenced by an ao-
vance in sterling exchange, whlch was
again firmer and has advanced nearly
five points this week.
Under these circumstances, it Is not
to be wondered that the market mas
Welded here and there, and but 1or tne
latent strength further recessiohs
might have been expected
Steel Commons Showing.
Steel common, and much of the for
eiEn liquidation is in this stock on the
theory that prices are reasonably high
and that profits are in sight, has yield
ed but 3 points, practically no decline
when the wonderful advance from the
minimum of a year ago. 3S, Is given
any consideration.
Some of the war stocks nave peen
hit hard, but they were stocks tnat
were pyramided with profts ana the
rise based on enormous pronts oeyono
&t,a iy,c do hXy
in their munition contracts.
General Motors is one OF these part
war shares-part because OF the large
business in the favorite cars made by
this corporation. 1t broke heaviiy yes,
terday, 40 points or more. and added
25 more to the loss this morning, with
recovery of i points.
Opening prices this morning reflected
some advances. followed by more or
less important declines. steadying
again in the last hour of the morning,
so that at noon there were few I'M
portant changes.
Market Gains Strength.
As the session advanced into the noon
hour there was gradual recovery
throughout the list, othing sensation
al. but a slow gain. 1t carried little
Steel to 81, or q of point net gain.
this in spite of selling of large blocks
in the initial trading.
So all through the list the improve
ment continued. Mexican Petroleum
rose to 119. over points from the low
of the morning, and other specialties
improved to a lessened degree.
The rails had stubbornly resisted
bear pressure in the morning and had
made fra actional gains. which were ike
wise extended during the early hours
of the afternoon.
1t was a very good recovery, and the
shorts were a little nervous and COW
ering freely.
Gains Strength Up to Close.
The market continued to gain
strength right up to the close. and fur
ther improvements. some Of them i'm
portant were noted.
Gains were made 81 q in Smelling,
"a in Baldwin / ,comotive, 10 points
net in General Motors, points in Mex
lean Petroleum, 2 points in Studepa ker,
TX net in Steel common, with the rails
* to point higher.
AS evident earlier in the session, the
buying was largely for the account OF
short sellers anxious to save some OF
their profits.