The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1917-01-07
Brace in Prices Due to Effort to
Induce Public to Come
Back Into Market.
HOPE BUT LITTLE REALIZED
Domestic Situation Regarded as
Encouraging, Considering
Circumstances.

week as the most talked of influence
in securities and financial circles, but
it was in a somewhat different aspect
that it was presented. Whereas be
fore it was the question whether the
| entente would give a favorable o.
unfavorable answer to the German
overtures. this week it was whether
tie imperial government would fol
low the truculent press of Berlin and
carry on a desperate war to the bitter
end as its reply to the enemies re.
| buff.
This phase in the first half of the
week caused a general stitfening in
prices in the stock market. although
it must be confessed that the move
ment- lacked much significance be-
cause of the highly professional char.
acter of the trading. Traders were
bullishly inclined in the hope. II
would appear, of inducing the public
to come back into the market after
the rather severe punishment many
had received the previous week or
two. This hope was not realized to
any very great extent.
Drop Is Not, Surprising.
1t was not surprising, therefore,
that prices dropped with considerable
precipitancy on Thursday and Friday
when, the first outburst of Teutonic
anger having begun to subside, it be-
came increasingly apparent that Of
fetal Germany, assuming, it was sim
cere in protestations of desire to
give peace to Eurupe, would in due
time play its second card and reply to
the entente in a manner that prom
ised a continuance of the prelimi-
naries which had gone before From
the meager reports that come out Of
the empire there is reason to believe
that Germany not only wants peace,
but needs it.
The conference OF the rulers of the
Teutonic allies at Berlin has been
called presumably to consider the.
next step looking to peace, rather
than to any measures that may be
necessary to carry on a more ener-
getic war. Moreover, reports came to
hand through Italy and Switzerland
that Germany was actually preparing
to send another note to the entente,
which aroused some interest in con-
nection with the communication from
the American ambassador at Berlin
to the Washington Government fol-
lowing his interview with Chancellor
Won Bethmann-Hollweg. Then there
was the rumor from the Capital that
President Wilson was about to offer
formally his services as mediator. and
that the Austrian Emperor had made
an appeal to the Vatican.
Makes Public More TImid.
Wall. street is still sufficiently deIud-
ed with the idea that the continuance
OF war is to it's interest. that this
combination OF developments caused
the traders to change front and to
make the timid public more timid.
Further improvements in the con-
dition of the banks are reflected in the
weekly bank statement of the New
York Clearing House. the curtailment
of stock market operations and the
settlement OF interest and dividend
and other financial accounts at the
turn of the year contributed to a con-
tinuance OF ease in money. The week
~ statement of the Bank or England
also was of a relatively favorable
character although TnrrC is ill con-
siderable room for iinproy ,ment.
There was not little discussion OF
an impending loan OH this side TO
Great Britain which may mate.ialike
within the next fortnight or so. The
amount OF this loan is still problem
aticaI. although there Is talk OF some
thing like $3.50, 900, 900 and its running
five years.
In London interest in Lombard
street Is conferred in the forthcoming
internal loan. and the sale OF treasury
bilIs has been stopped in preparation
for that fiotation. The issue is eN-
p,cted to bear ) per cent TO be offered
ut % and to run for twenty years.
Domestic situation Encouraging
Considering all the circumstances,
the domestic situation may be re
garded as encouraging. The Mexican
affair drags on but there IS reason to
believe that some sort OF an under
standing my be reached. Talk OF rail
road strikes has subsidized for the time
taken to introduce strike prevention
legislation in Congress. Railroad
for November and the eleven
ended November 30. make
very good showing in reality, with
increases in gross. In the |
Ease of some of the large trunk lines |
like New York Central and Pennsyl |
Iania there were decreases in net !
For the month, but it is to be remem |
Dered that comparisons are made not !
only with a favorable period for the !
roads i'm 1915, but with a time when |
all railroad equipment did not cost !
anything like it does now.
The furry caused by the statement |
hat 500, OOO.O in war contracts had I
been cancelled was but momentary. |
The surprise was no doubt caused |
more by the statement of the amount |
than by the fact itself. since it has |
been no secret that some options have !
been cancelled. that the war business |
Ias been waning for some time. that !
Great Britain and France are increas-
ng their munitions facilities and that |
'anada is to be favored to her ca
,acity with further orders, while all |
his is perfectly true, IL is equally
rue, that supplies of raw material
must come from the United States.
Gain In Cash by Banks.
Reported movements of currency
his week indicated a gain in cash by
he banks in excess of $4,000, 900.
This gain was effected mainly through
he imports of gold and the retaining
inflow of funds from the interior. The
ranks gained SS.319.OOO from the in
arin haV, lie . h.