The sun., 1917-09-13
FINANCIAL NEWS
AND COMMENT
Theories Of All Kinds Ad-
vanced In Wall Street for
the Continued Slump.
WAR IS THE REAL REASON
Rallying Tendencies Shown
Before Close Should BE in
Evidence To-day.

Stock market values yesterday moved
toward lower levels throughout the
greater part OF the session. Both liquida-
tion and professional pressure were re-
ported. the latter encouraging the SELL
ing af commission house accounts upon
which margins rapidly were disappear
ing and attracting a certain amount OF
liquidation Of stocks owned outright.
particularly tho rails. In which losses
ran from two 10 hve points.
The violence Of the decline and the
persistent selling from various quarters
suggested TO many minds that some i'm
portant adverss development was on
the way of becoming public property !:
that the nature Of the news was known
to various financial interests, and that
big operators were getting out Of
stocks and selling short. liauidating their
holdings In the confident expectation Of
buying back at cheaper levels and SELL
ing short for immediate profits This
was a theory which was not substan-
tiated by the known course Of affairs
with a bearing upon vested funds the
general happenings of the day presenting
the same characteristics OF recent days.
and to a great extent Of recent weeks.
More professional selling was In evil
dence than actual liquidation. Indeed.
the professional pressure against prices
was so heavy and 80 confident that some
easily Influenced market followers rushed
to the conclusion the bottom was about
TO fall out OF the market without the
slightest opposition from the substa ntial
financial interests. Possibly the sub
stantial interests were disposed to let the
professional operator have a free rein
with the idea Of letting him get seri.
ously tingled In his own driving.
In other words the Wall Street power,
may have been running out the ropt
with which the professional bear nigh
hang himself. And again 1t is possible
that certain large interests encouraged
! the downward movement for the purpos.
Of starting something of an upward
! swing from lower prices
Almost any theory will pass muster II
! the current market, but the fact remain
the present low level OF stock ma rke
values II based on conditions inciden
TO war both In this country and abroad
War Is not an argument for the con
structive side OF the investment markets
despite the increased activity 1t bring
, to many lines OF industry. Increase,
! Industrial activity demands the use OF
/ large amount Of working capital. ant
increased earnings In war times do no
! mean expansion IN returns TO the own
ers OF industrial corporations or I,
the owners OF the railroads. particu
larry when costs Of operating are higl
| and Government price fixing Is in vogue
Price fixing OH steel and copper ha
not yet been accomplished the idea tina
a reduction In the price OF labor may h
effected Is not working out and the bur
den which will be thrown on earning
by taxation has not been fully deter
mined. although the war revenue mes =
ure promises to become a law practicall.
as IL left the Senate. No. war Is not n
all in favor OF the constructive side o
the stock market. yet prices hav
reached level which would suggest tn
time Is near at hand when q sharp pass
ing upturn might develop. For the out
slider at least the bear side Of speculation
looks extremely dangerous. Rallyinl
tendencies were shown before yesterday
close. They should continue to-day.
Money was firm throughout the day
with genera! Indications In the loan mar
ket of relatively firm quotations 70
weeks ahead. Ruble exchange moved &
a new low level. but recovered some
what before the close. its low represent
ing n decline OF more than II per cent
from normal.