The Washington times., 1917-03-18
MARKET RESISTS
ADVERSE FACTORS
Optimism Reflected in ResiIi-
ency of Prices, Despite Un-
usual News Developments.
SHORT SELLING HALTED
Movement Brought to Almost
Negative Point BY Threat
ened Railroad Strike.
SHORT SELLING HALTED

Throughout the current week, in
which news developments OF conflict
ing tendencies abounded, the securi-
ties market continued in the even
tenor OF its way, much as though IL
were midsummer and the frequent
ers OF Wall Street were absent on
vacation. And the optimism reflected
by the resiliency of prices in the gem
eral list was quite worthy of Mark
Tapley in his best moments, as often
the news items which the financial
community had before 4. ordinarily
would have operated to exert pressure
and cause widespread liquidation. The
outstanding feature OF the market,
therefore, was the steady resistance
with which IL met all sorts of adverse
factors, as well as its utter disregard
Of theory in its movements. Specula-
tive liquidation has gone far. the
short interest IL extensive, invest
ment buying has been going on quiet
ly and steadily for a long time, and
the result il that the scarcity OF
stocks has caused a quick response
to buying made necessary for one
reason or another, covering by the
shorts mainly.
At intervals there has been consid-
cradle short selling, but this move
ment was brought to an almost mega
tive point by the new Developments
in the railroad situation. No small
amount of confusion has been brought
about thereby. Opinions differ widely
as to the. reasons which prompted
the threat OF a strike at a time of
rfafa nd xvhAA thu
Supreme Court was about to render
a decision with respect to the consti-
nationality of the Adamson law.
Saw Eight-Hour Principle Doomed.
The view of the railroad employees,
as most generally understood, is that
the eight-hour principle, was doomed
to be relegated to the realm OF the
unrealized for a long period, perhaps
for years, should this country become
involved in war with Germany. I'm
doubtedly a great deal of pressure
has been exerted by the men to In
duce the brotherhood Representatives
to press the issue.
Into the midst of the anxiety here
over the railroad situation was thrust
almost without previous warning the
startling news OF, the revolution in Rus
STA. For. days there had been an omin-
Gus silence with respect to what was
going on in Petrograd and Moscow.
Vague hints of revolt came over the
cables from London from time to
time, but the intelligence was so
meager that few attached more i'm
portance to it than to earlier rumors
OF unrest in the Cars dominions.
The first information that appeared
definite came by wireless from Ber-
lin, and this puzzled Wall street not
a little, since IL was evident that the
uprising was directed against Ger
man influence at the imperial court
and could not, therefore, be regarded
in any sense as fayoring Germany's
chances OF exacting separate peace.
Market Soon Recovered.
Presumably the first impulse in
Berlin was to take the news as fav-
orabIe, although it would APPEAR that
Bethmann-HoIlweg did not share
this view, judging from the speech he
delivered in the Prussian Diet the
day before, promising the people |
equal rights and participation in |
the work of the state" after the war. |
As in London, the revolution was
cause OF the entente. There was a |
decline in Russian bonds |
and a brief wavering in stocks in |
general. AS soon as the confusion of |
ideas resulting from the sudden coup |
passed. the markets resumed their |
placid attitude. IL was pointed out !
that the loans made here by Russia, |
one Of $4,000. 900 and another of $685. |
OO0. 900. as well as the numerous |
munitions contracts, had the author !
ization of the Duma, itself still in |
tact, and that body was not likely |
TO repudiate either. Hints were even |
heard that England and France en- /
gineered the successful movement so |
that Russia would be in a position to |
prosecute the war unhampered by l
intrigues at court, which /
had the effect of Withholding sup !
plies from the soldiery and civil popu-
lation alike. The Russian people, |
that IL to say, the Duma, are pro-ally. |
and the imperial encourage and minis
try were pro-GermRn.
May Delay French Loan.
The new government is rapidly con-
solidating its position. Food supplies,
hitherto concealed by the old regime.
were discovered, brought forth and
resulting in an instant
drop in prices. The army has de-
clared its allegiance to the new state
Of affairs and greater energy in the
war is confidently anticipated.
In financial circles IT was heard that
The Russian outbreak would very likely
delay the issue Of the impending $780,
10000 French loan. II may do so, IN
view Of Frances fiscal relations with