New-York tribune., 1916-02-21
Hesitation in Securities
Liquidation in No
Large Volume.
STOCKS TO BE SOLD
CONGEST MARKET
Good Investment Demand for
New Bonds-England to Check
Imports of LuXurieS.

The rise in the copper stocks OF the
week before brought no material add
ton TO public purchasing Of securities
and instead there was scattered
through last weeks trading more or
less selling by tired commission house
customers. This liquidation. most ap-
parent on Wednesday, reached no
great volume and did not so far to-
ward reducing the mass Of speculative
accounts waiting for chance TO sell at
profit. SO far as the superficial ac-
tivities Of professional traders were
concerned. sales had apparently over
balanced purchases, but the short in
terest so created was not in itself
sufficient to bring about any marked
recovery on repurchasing.
In most days prices sagged and,
though the course Of the trading was
confused by movement Of particular
is.ues In which groups Of spectators
were acting. the tendency was toward
lower levels Brokers were inclined TO
predict dull, listless market for some
time unless an unusual influence came
from without or prices were sufficiently
depressed 70 eliminate overhsnging
long accounts and TO bring in new
buying.
As matters stood, the capital % many
brokerage houses was pretty well en-
ployed. II million share days were
safely TO be counted on TO come in the
next two years in some such number as
they came in 1915. if big public
markets were assured, then the COM
mission houses would find means 70 add
TO their working funds. Brokerage
capital is enlarged slowly and, as in
any other kind of business, is in
creased on likelihood of reasonably
permanent profits, not for temporary
needs. This particular time is one or
war and uncertainty. The duration OF
hostlities and the aftermath III our
market that viii come with peace are
uncertain.
Large Interests Cautious.
While the speculative following
from without remains Indifferent, large
interests see In the continued con-
troversy with Germany and, TO q lesser
extent, in the difficulties arising from
England's interference with trade, rea-
son for caution. Settlement Of the
Lusitania case. complicated by Berlin's
announcement that passenger ships If
armed would be subject 70 attack with
ont warning, seemed to recede further
into the future. The market was no
longer moved up and down as Wash
ington dispatches indicated settlement
more or less probable, but the hesita-
tion and small volume Of dealings
showed that the question of our in
ternational relations was not being
disregarded.
Evidence of prosperous business was
still received without enthusiasm.
Idle freight cars were reported re-
duced in January. which ordinarily is
dull month for carriers. Dividends Of
some of the industrial concerns were
raised. Bank clearings continued TO
show general business in large
volume throughout the country and
commercial failures were fewer. In
the steel trade prices of finished prod
ucts still rose. and there was no les
sening Of congestion of orders at the
mills. Eventually all OF this may
prove TO have more than justified last
years rise in the market and to war
rant further improvement in security
prices, but for the present signs Of
prosperity pass unnoticed.
Corporation Profits Rise.
More corporation reports were put
d he nj 1l..
sented accounts OF much better bust
ness than in the year before. The por-
phyry coppers for the last quarter Of
the year made remarkable earnings,
because OF the high rate of production
and the remarkable levels at which the
metal sold. There is no question Of the
benefit that producers Of material have
received from filling Europe's needs.
What has been the result for those con-
Germs which for the first time have
taken up munition making still re-
mains uncertain.
In the statements that were offered
by these companies such work is still
incomplete, and earnings from foreign
contracts are not segregated. The war
order business holds its mystery, even
though its possibilities are not so al
Turing to the speculator as in the great
uptIiu Al ctNbi4NiNo AhNb bttai iaoN
spring. Cost of raw material and labor
have risen. Difficulties in meeting spe-
cifcations have caused delay and
trouble. In the meantime, while the
companies that have prospered can
not be surely distinguished, the whole
war order group suffers from a meas
urC of public distrust.
England Restricts Imports.
The British governments decision TO
restrict import of certain luXuries is
another attempt 20 escape the cOnse-
ouences Of that country's over-cApan-
sion Of currency and credit. The false
prosperity and high prices prevailing in
England have tended, in spite Of gov
eminent efforts, 70 increase purchases
abroad, and have added to that ccun-
try's difficulties of international pay
nent, heavy enough already through
purchase of war supplies. Great Brit
ain is such large buyer here, TAX
ing, according TO the latest statistics
available, more than one-third Of all
our exports, that this policy may seri-
ously affect certain portion OF our
trade.
Government powers are greatly en-
larged in time Of war. and the Eu
ropean nations whole business is grad
ually coming 20 be conducted under
a kind Of martial law. Such arbitrary
interference with the normal tendencies
OF trade may minimize the dangerous
- %ha r,dtto .Nnope,np thot has