The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-10-07
4 PEACE RUn0R
TO CAUSE REACTION
"a 10nfk Up German Exchange to
Make Report Probable.
MERELY A MARKET MOVE.
Aue II Had Effect of Wiping Out Largo
q Numbcr Of ''Stop-Lo~scrs, Who
4 Were IncuInbcr-ing Stock Situa-
ton.
Rr RROADAN WALL

sF9&5 New o3k, tCJ D. nat Ht~ ~
ananciers in Wall Street have the
( dramatic instinct developed TO re-
markable degree was proved today.
"A reaction has been wanted in the
market for some time Everybody ia
4 miilar with the situation has under
stood thoroughly Why 1t should come.
So today a hank president called IN
several newspaper reporters ana,
lining them in front of has desk, IN
!. formed them thar Am hassador Gerard
4. hs'n~ NJ plea for peace from
Gcvr1a~,. stcantime, skiliful brokers
,cr. orders were hammer
9 irt f-arket on the Exchange
re ut OF the break was palmed
OF on :Ae public as a peace scare
The f,nnkers overlook ed e very I'M
portant part of their stage setting, let
ting the scene shift so TO speak
walk out in front Of the stars at the
dramatic moment, for they forgot to
out German exchange up few
points. as It would have gone If the
peace talR had been serious
Che wh6,e affair was SO evidently
4 feat OF Ii .rical manipulation that
even before ne close of the market
traders recovered their wits and many
OF them recovered their stocks.
Again On Bull Side.
NOW LnaI the ibHR t&ptt tSp ANU
much needed reaction has been &C
: com plished, the bankers are supreme-
" hulIish again on the market. The
writer Of this column is in direct COM
munication with a financial expert,
who since the war began, has been
travelling back and forth between
America and London and has been
called into the war councils OF the al
I Hes to give advice at first hand re-
( garding supplies TO be obtained from
America This gentleman was in New
York today and stated that all peace
talk should he disregarded because
the war council cannot see any possi
htlity Of peace for TWO years at the
very earliest He said that Germany
might from time to time make propo-
eitions, but 1t would take two more
years OF fighting before Germany
4 would be willing to make PROPOSE
i tion acceptable TO tho allies.
Early in the war German victories
were beerish on the market because
they tended to shorten the war and
I cut off Americas fabulous profits
After the tide turned at the battle OF
the Marine, German victories became
hullish because. since then, they have
tended to prolong the war. Econ
on,ists are of the opinion that the val
y mas hasten long efioHR loi lIlt eott
OF America and that after a few
months II will begin 70 hurt the mar
!. ket again when the Germans win &
battle. because then a speedy end o.
the war will be desirable
Machine Made Reaction.
That the reaction was machine
4 made. and that prospects of peac'
d had no real influence was also in
4 dscated by the fact that early thi
morning bankers planned to have th'
tse~ ~o~ae because Of n renewa
Of the submarine program Of frightful
@~l s'7tsf''nHt t9e aCtor
cast for that part were withdrawn
4 and the peace rumor substituted, be
cause of the possibility OF Mr. Gerart
4 really bringing some proposition from
1 Germany.
Values had nothing whatever TO d.
! with quotations today The who'll
4 situat ton was a study in mind read
= Ing The bankers saw that the pub
lie was nervous over higher PRICES %
y food and decided that II was tn
psychological moment for scare.
u Existence Of stop-loss OF prof
4 orders in sat volume was the rea
N cause OF sue reaction, and since 81
many OF them were wiped out tn
Y bankers performed public service 0
I healthy condition, and ready for th'
reaction that will come as matte
. 81 course on the discovery that Ger
4 ssxan peace proposals have not beer
made. and IL made. will be rejected.