The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-18
FINANCIAL NEWS
AND COMMENT
Stocks Unsettled on Mexican
SituatiOn-Priccs Easy
at the Close.
RESERVES ARE GROWING

The serious overnight turn In the Mex
Nan situation served to further a~cceler-
ate yesterday the declines IN the stock
market which began on Friday. after
ruinors that the National Guard of his
State had been called out for service on
the Mexican border. The market opened
irregular in tone. and traders. finding
that there was no public and little pro-
fesAonal demand for stocks. sought 10
make bear capital OH. Of Cen. Funston's
confirmation of Mexico's determination
TO maintain her sovereignty. even though
Il should result in war with the United
States.
A a result the entire list was sub
lected 70 considerable pressure and the
losses during the two hour session ranged
anywhere from Il OF a point To 4 points.
A was only natural the securities of the
companies having properties in Mexico
were among the chief targets OF the
hears. The industrial list especially
showed unsrttlement. Although the rails
held MP we'll 81. Paul. Reading. Southern
Pacific and Union Pacific were under
pressure.
The speculative pool which has been
operating for many months in Crucible
found itself confronted with a flood OF
selling orders as n result of the unsatis-
factory dividend action by the directors
Of that company. Hopes that the bank
dividends. amounting TO 24% per cent. on
the preferred stock. would be wiped out
shortly by generous disbursements out
of earnings received a severe setback on
the announcement Of the u of l per cent.
extra declared on the account OF the un-
paid dividends.
London security prices were lower
a. the result Of the stiffening of the
cpen market discount rates, consols re-
acting a full point to 5sia. Sterling
exchange. however. mad no response
70 the advance In rates In Lombard
Street. The total 20 date on the gold
import movement from Ottawa was in
creased 20 SCI .575, 900 yesterday by the
deposit Of $4,000, 900 in gold bars in the
Assay Office by J. +. Morg.n 4 Co.
Bankers Interested In the French loan
negotiations admitted yesterday that the
Details Of this piece Of financing were
about completed and that 1t was prob
able thar an additional credit ~ $780,
OOO. 900 would soon he available here.
The new credit will he a collateral one,
IN that France will deposit the eecuri-
ties OF neutral countries with a desig-
mated BANKING institution either IN Lon
don or Paris. and our banks Will then
issue the debenturcs of an American
ttFptTdlltD tHcllloN NH'o seNuthS' NV
dehcntures will be offered to the public
and will bear interest at 5 per cent. OF
better.
The weekly hank statement Of the Clear
ing House members continued 20 show Ar
Increase IN the surplus reserve. an In.
crease which has been IN evidence evei
since the sttffening Of money rates. The
surplus reservs. according 10 tho state
mcnt OF actual condition. now amounts
10 s93.es1.140. a gain Of :1.4cs,44 oveI
the previous week. which IN turn showed
an Improvement Of more than $4,000.
600. Loans are also being reduced. tina,
item now being s3l.3l1,344.00o. a de-
crease ~ 2o.15s.00o. This 10 tho third
consecutive week that the loan state
mcnt has shown a decrease. the tota
for the three weeks being sol .551 900.