New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-17
Loan to Russia
Prompts Brisk
Rally in Stocks
Spectacular Rise in Russian
Bonds on Curb Hits
the Shorts

A spectacular Jump III thc pi'N~"
Russian government bonds, followed
by buoyant stock market, greeted the
announcement that Russia had been
granted a credit OF Sl00,o00,OO0.
The improvement in sentiment III
financial circles was apparently bsseu
on n belief that the State Department
at Washington must take an optimistic
view of the situation in Russia or
otherwise the government would not
have undertaken to advance the credi'
announced.
On the BROAD Street curb. the Russian
external 6iz per cent bonds, which DIS
played such pronounced weakness the
day before. shot up ten points in NJ
teen minutes.
On the Stock Exchange a hesitant
market quickly became active ana
buoyant after the tickers flashed 'ne
news Of the Russian loan. Prices OF
many issues touched the highest Levers
in weeks. as the result of lively scram-
bic to buy. United States Steel common
stock was in the van of the movement
It closed at 1905, the top price OF the
day, and net gain of AS points over
the Tuesday closing.
steel Stocks Buoyant
Shares of other steel companies were
correspondingly strong, the movement
in this group as a whole being helped
along bv a statement that the fulhi-
ment of the governments programme
would require the entire output oil SNIP
plates in this country over PERIOD Oh
ar least two years. Much Of the puy-
ing of stocks came from traders VINO
had sold the market short in aLtlcipa'
ton of a further decline in prices. Inc
general advance in the market aver
aged one and two points, with the IN
dustral shares leading.
Dealings in United States Steel stock
,,.o,o m the same enormous scale that
characterized operations IN the shares
during the "boom" markets of the last
two wears. At 12O5s the stock was at
its highest quotation reached TINS
wear. on the recovery from the low OF
90. made on February !, the day on
which Germauy's ruthless submarine
campaicn began. The record price OF
1898, for Steel common was made last
November.
In the last hour of trading there was
lively buying of railroad stocks by
professional operators, who have been
selling such securities short with much
consistency for the last fortnight. To-
tal transactions for the day were about
ESQ COO shares. about 40 per cent OF
which changed hands in the last hour
of the session, when the market was
feyerishly active. Bonds showed re-
covery from early weakness.
Most of the large private wire houses
rcnorted an increase in buying orders
from the West. which was attributed IN
mart TO the closing of the gram eN-
changes to speculation. Several or the
large Chicago houses, having discon-
tinued taking trades in wheat, are, u
is said, inducing their customers TO
trade in stocks.
Shorts Take Heavy Losses
The movement of the Russian gov
crnment bonds in this market was one
of the most sensational witnessed In q
long time. The 512 per cent external
loan placed here last year. after selling
early in the day around 754, new low
record. jumped sharply when 1t was
learned that the United States had de-
cided TO extend financial assistance to
the new Russian government. and soon
were selling at s3i2. an advance of 81
points. They closed at 81, with deal
ings of S250000. The 6i2s, tA other
external Russian obligation, rose from
so to 90 and closed at 50. on dealings OF
$780, 900. II was reported that some
heavy losses were taken by traders who
sold the Russian bonds short on the de
cline earlier in the week and who COW
cred yesterday at substantially higher
prices. For some time of late these
securities have been a target for short
sales. owing TO the unsettled state of
Russian internal affairs.
In the foreign exchange market Rus
sian rubles were stronger, selling up to
21.60 cents. compared with 27.15 cents
on Tuesday and low record Of 1913
cents maze last week Normally the
ruble has q value Of around 81 cents,
but since the war it has steadily de-
clined, owing to the increasing de-
moralization Of Russian credit.
i