The sun., 1917-08-22
FINANCIAL NEWS
AND COMMENT
Probable Revenue Bill Changes
and Coal Control by Z. 8.
Are Meat for Bears.
STOPS HELP THE DECLINE
Sellers Of Borrowed Stocks
Placing Themselves In
Dangerous Position.
STOPS HELP THE DECLINE

On a small volume Of business stock
market values moved In the direction OF
lower levels ,in the greater part OF YES
terday's session in the Stock Exchange.
the decline representing chiefly profess
sional pressure, which was effective In
bringing out q certain amount OF COM
mission house stock held subject to stop
orders. Tho movement did not accom-
pany any change in the general situation
as affecting the financial markets. but
the suggested changes in the Ssnats's
war revenue measure which would In
grease corporation ana income taxes.
ana the threatened absolute control Of
the coal industry BY the Government
served to encourage bearish traders to
sell the genersl list. A noteworthy ab-
sencs Of demand except at big conces-
sions in prices and the unexpected pres
ence in tho market Of . substantial line
Of "stops'' carried prices for most shares
down easily under relatively light SELL
ing. with the only tendency to rally re-
ported near the close, when covering of
shorts brought about a somewhat nrmer
tone
The old idea that It 10 not safs to sell
a dull market Ii not working out under
present extraordinary conditions. Prece
dent Is not safe guide in these abnormal
times. although there are not . few
market observers who believe the bears
are now driving nails into their coffins.
They assert technical conditions arc
such that a first class rally soon will de-
velop. irrespective OF outside conditions.
but 1t Is worth noting. however. they are
not backing up their conviction by load
ing themselves with stocks.
No one apparently wants stocks. yet
| somebody has the stocks, and according
to an idea expressed in a large house
yesterday somebody eventually will
make a substantial turn when the big
financial powers take II into their heads
/ the time is ripe for a swift and quick
campaign against the operators who
have been selling borrowed stocks.
Like borrowed money. borrowed
stocks must be returned. And It may
come to pass the market, temporarily
at least. will develop conditions which
will make II extremely dificult for the
borrowers OF stocks to return them ex.
cept through purchase In a rapidly ad.
vancing market. But the bears-ever
they are foolish at times-are stickinl
to the theory that there Is to be ne
rally that there is only one side to thlI
market and that tho general tendenc,
for weeksto come must be in the direc
tion OF cheaper quotations
Perhaps the long time bear who Il
well protected financially may win OF
this theory, for there are many factor
in the situation which suggest the bot
tom has not been reached. but We fea
the little bears may not enjoy inmunit!
from losses IL they insist on proceeding
on the assumption that in view Of alb
normal times there can be no such thin
as turn against them in the movemen
of market values
A big bull market supported BY tn
public and extending over q period o
weeks appears out Of the question. bu
that practical certainty Is not a warran
for the liquidation Of investment securi
ties. nor should It discourage the ma
who has idle funds on hand from pick
Ing up tho bargains that may be had Il
various departments OF the investmen
held. 1t Ia a safe guess this country
not going into bankruptcy.
War will bring many Sconomi
changer. but II will not undermine ou
ever. should be observed in tho purchas
Of securities for Investment account.
Money rates were without importan
change. while the foreign exchange ma
ket moved with no particular tendency
More gold was withdrawn for expor
and Washington advices to this pape
suggested arrangements were bein
made by agreement with Great Britai
for fuller control Of foreign exchans
by the United States. In part for tn
purpose of preventing further shipment
of gold from this country to neutral ma
tions on account of business betwee
those countries and the AllieA