The sun., 1916-11-14
FINANCIALLY NEWS
i. AND COMMENT
Stocks Decline Late on Reports
Wilson May Use His Best
Offices for Peace.
PUBLIC BUYING HALTED
Bank Statement Also Has In
tflucnce - Some Traders
Forced to Mquidate.
PUBLIC BUYING HALTED

Public buying Of stocks, principally
from the interior. was vigorous in the
early trading yesterday. II carried steel
common to 123L. a gain OF q. OF a point
from Saturdays close. produced gains
In many OF the copper socks. and
continued the advance in many Of those
industrials which rave bounded forward
buoyantly In the last two weeks. But
with the public demand appcased sub
stantial support was found lacking. and
In the afternoon the market turned
weak. The close was I to 3 points be-
low the high prices Of the day and dis
played considerable losses in most OF the
active speculative shares.
Washington reports TO the effect that
President Wilson proposed TO use his
best offices for peace. now tha. the cleo
tion is over. accompanied the dcclin-
ing movement in the afternoon. Some OF
the houses with WASHINGTON connections
professed belief in these reports. Their
circulation renewed interest In MIR. Sa-
bins declaration Of several weeks ago
that Germany had requested the Prcsi-
dent to use his best offices with the
Allied Governments to terminate 'he
war. That Mr.. Sabin himself positively
reiterated his expression. as he has
o insistently since the much dis
cussed iRerview. lent weight to the ar
gument that wal stocks should be sold
on peace reports.
A more substantial cause for the de-
cline was found In Saturdays bank
statement. Though the statement showed
4 surplus reserve OF nearly $4,000. 900.
which. of course. Is ample for all current
business and speculative purposes. there
remains the outstanding fact that the
! banks reported for Ave business days an
expansion OF nearly SOS. 600, 900 In the
loan account. That expansion, as II was
we'll known. accompanied a week OF
marked activity. which Included two days
Of 1000. 900 shares. with Industrial
shares conspicuous In the trading and
with many shares OF little repute IN the
old days advancing the most lmpetu-
ously.
The banks did not call loans. The call
money rate was 2is per cent. on the
great majority Of business done for Stock
Exchange houses. hut In all Of the large
banks there was discrimination against
inflated Industrial collateral In the re-
spect tina the banks would not follow ur
high prices established Friday afternoon,
Saturday and yesterday morning. all OF
which were periods subsequent TO the
making or renewal OF previous call loans
Loans made Friday carried over III
Yesterday. Meanwhile, and in earle!
days Of last week. scores OF broker
age houses greatly increased their lines
Of stocks. All OF them had coIla'era
yesterday. but not all OF them coulc
without liquidation supply collateral o
the varieties desired by the banks
Many of them mad extended their busi
ness In stocks we'll above the credi
which they had previously secured iron
the banks. Their big reserve notwith
standing. the banks rigidly adhered Il
the policy inaugurated a year & o
RETAINING from following industrial
prices up.
As some brokers were thus imrelle'
20 sell stock, so many customers called
upon for margins were obliged to curtai
their lines. II was another OF thos
times not at all infrequent In the las
year when both brokers and customer
In many houses disregarded the warn
ings OF experience, relying upon N
plethora of money rather than upo
sound banking rules. and had overeN
tended their lines beyond their abilitie
or habits. To these brokers and trader
there was again impaired a forcible re
minder that loans must not be initiate
TO a point where they lack respiration.