The sun., 1916-09-26
FINANCIAL NEWS
AND COMMENT
Sales Of More Than 1000, 900
Shares Make Heaviest Stock
Market in Years.
SHARP BREAK AT CLOSE
Steel Tumbles to ia 8-4 From
New High Of 100 in Heavy
Outpour Of Securities.
SHARP BREAK AT CLOSE

The best feature Of yesterdays stock
market developed In the last fifteen min
utes Of business. when United States
Steel broke sharply and other shares
which had been especially active on the
long side sustained decided declines
from their earlier high points. Doubt.
less this statement will not receive the,
cordial approval Of the operators who
bought stocks At top prices on the theory
that there could be no marked reaction,
but II Ia Justified. nevertheless. and Il
will receive the Endorsement Of the mes
who believe speculation has been run
ming too fast and that the safety brakes
should be applied. And the brakes were
In the closing dealings.
Substantial interests who had become
alarmed over the extent OF the days
speculation. which before the end of the
last hour had run into a 100000 share
affair. pulled the emergency cord, with
the result Of q tremendous o~utpouv.ng
OF stocks In thA course of which stop
orders were caught In volume and weak
ened technical conditions were materially
strengthened.
More h half a million shares 81
Steel common were dealt in on an Rd-
vance which carried its price to a new
high at 40. When the peg was re-
moved there was u quick decline 70
11+%. with the inal price at l1o. or .
points under Saturdays last Quotation.
And similar movements were reported In
the copper shares. which o to new
highs In the early trading In Crucible
Steel. International Nickel. Reading and
other Issues. which had been going up
under. the influence OF tremendous public
buying. To q certain extent the class
Of buying was weaker han that re-
ported at the close Of last week.. many
OF the big outsiders who had heavy
profits from advances of other days turn
ing their stocks over to new buyers In
the expectation Of reentering the market
At cheaper levels.
There was no suggestion In the char
acter OF the tall heard In important
banking quarters that efforts had been
made TO bring the bull speculation to an
end Indeed. there were many indica-
tions hat barring the development Of un-
favorable factors further Improvement
in prices Was looked for but that active
efforts would be made to check tendencies
that might lead to . crazy runaway bull
market.
In addition TO the favorable impression
created in the financial district by the
extraordinary position Of the steel and
copper market. as reflected in price move
ments In the Stock Exchange for the
steel and copper shares. tho remarkable
conditions in tho mon market and the
country's full report Of foreign trade for
| August helped to strengthen confidence
In the theory that although there should
be further sisable reactions In market
values the appreciation so far recorded
] was not q full measure OF underlying
conditions.
Last weeks bank statement lends no
hope to tho idea Of the trader that money
market developments may run in favor
OF the man who Is short Of stocks. Rates
were easy yesterday. with time funds
distinctly heavy. Demand for accom-
mediation was relatively light In view Of
| the tremendous speculation under way In
securities. tho absence Of a heavy bor-
rowing demand from commission houses
again calling attention to the fact that
an unusually large proportion Of the
current buying Ia being conducted upon
Spectators are financing their own oper-
atoms. Many small new operators. how
ever. were In yesterdays market on bor-
rowed funds.
American exports Of merchandise in
August passed the half billion a month
mark. the hgures or tho bureau or For
ein. and Domestic Commerce showing
that the outward movement for that pc
Rod represented a value Of $50. o00, 900,
which not only is the record for the
United States but for all countries. while
1t IL $35. 900. 900 greater thar the best
preceding record, which was established
in May, and S+5.o00.00 better than the
June record.
Imports. on the other hand. presented
a decrease from the record June move
ment. although they were heavier Than
in any preceding August. The excess of
exports over imports in the month to-
tailed $3ll ,000. 900, compared with $l19.-
900. 900 in the same time last year and
an import balance in August, 1914. Of
100000 making for the twelve
months to August 81 last a balance on
trade account in favor Of the United
States OF $2.465. 000, 900. as against
$l.s63, 900. 900 in the preceding twelve
months.