The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-25
FINANCIAL NEWS
AND COMMENT
Stocks Recover in an Active
Session the Decline Made
on Saturday.
MARINE SHARES LEAD

recovery tOok place III tHo stVCh W
ket yesterday. cancclling the losses made
In Saturdays peculiarly weak session.
The strength displayed was somewhat
impressive under the circumstances OF
the continuing uncertainty respecting in
ternational developments, even though
the character Of the advices over the
week end suggested an effort by the Ger.
man Government to md q way Of pre-
venting a breach Of relations with the
United States. The financial community
was not inclined to indulge IN over
confident anticipation as to the turn
which German policy would take. 1t
was recognized, among other things, that
Wall Street values would not be released
from restraining influences on accoun
OF the European war unless conclusive
settlements of controversy could be ar
ranged which would eliminate the likeli-
hood Of recurrent crises threatening to
alter this country's status Of neutrality.
For tho moment. however. the import
OF the Berlin and Washington dispatches
was tentatively reassuring enough to
make the stock market much less sensi-
tive to speculation for the decline or
OF apprehenslons excited by bearish OPP
erations. The share list seemed to re-
fleet appreciation of the fact that en-
cited assumptions OF the inevitability of
a break with Germany might ignore
rather recklessly the powerful reasons
which Germany must have for avoiding a
break. In n case. moreover. Il was
obvious that a good deal had been done
in the direction of discountinG adverse
occurrences which were only contingent
cies. and that the stock market had been
placed In . technical condition Of over
preparation for conjectural events.
There was during the day plenty Of
speculative exhortation TO observe the
uncomfortable aspect Of Mexican Affairs
and note the disquieting labor situation.
Yet the Stock Exchange dealings seemed
to imply that In the extent to which the
process of di%scounting a break with Ger
many had been carried other u~nfavorable
matters OF minor importance had been
discounted too. The upshot of the Wall
street day was probably not 80 much a
stock market conclusion about the course
of events in the field of major uncer-
tainties as II was a response to the
exaggerated depression Of prices las.
week.
Rather extensive short selling com
bined with heavy liquidation from veal.
accounts had apparently placed the list
in q position to respond vigorously to
any substantial volume of buying. Such
q volume was furnished In large part by
purchases to retire short commitments.
For The rest there seemed to come Into
the market the accommodating orders
which were missing on Saturday and the
absence Of which was what made the
list peculiarly vulnerable to the selling
movement OF the short half session.
Trading was on an active scale and In
the main the market made persistent
progress in strength from the opening
TO the close.
There was a large initial demand for
stocks. but the advance Of prices which
this tended to cause was checked by the
selling orders resulting from the margin
calls that went out on Saturday. With
that selling completed. the market rose
sharply in the second hour and after q
quiet interval of some i%rrcgularity
turned strong and active again in The
last hour. although In the closing period
some Of the Industrial specialties were
very clearly in liberal supply. The lead.
ing features OF the day were the Mercan-
tile Marine shares, which held 20 stoutly
in the recent decline and were heavily
bought at the highest prices Of many
weeks. the understanding being hat thu
American International Corporation had
been acquiring a large interest in thu
company. the extraordinary prosperity
OF which has been one OF the marvels Of
the business transformations brought By
the European war.
A furry in call money in the last houl
pushed the rate UP to 81 per cent. the
highest level since the reopening OF the
Stock Exchange. The period when thi.
advance was made deprived II OF niue,
Significance. but IL must have beer
largely the consequence OF the disturb
ance OF commission house accounts Incl
dental to the unsettled stock market II
the last half OF last week. Presumabl,
also some revision Of loans by variou.
lenders contributed to a temporary scar
city OF accommodations In the face Of un
usual borrowing demand. The circum
stance will have no Importance unless II
the course Of another day or 20 It ap
pears that he call o rate has beef
established at n rise above the leve
which has obtained so long.
In the foreign exchange market Ger
man bills were slightly easier but no
enough so to suggest any obvious con
nection with the reports OF the officia
German attitude toward Washington'I
latest note. The Southern Pacific Rail
road reported for March a gain OF 81,
$4,000 in gross earnings and an in
crease OF $S34.00o in net. The after
Moons quarterly meeting OF the United
States Steel Corporation directors wa
looked forward TO with much interest
Net earnings for the first quarter OF tn,
year are expected to aggregate In tn,
neighborhood OF $50. 600, 900 at lea VI. Al
compared with the earnings of more thar
Sal 900, 900 reported for the last quartz
OF 1915, which were a record for an,
quarter In the corporations history
There have been various reports ahou
the possibility OF al Increased dividen,
distribution on the common shares, ,
stimulus TO these reports being given b,
the recent announcement OF another in