The sun., 1917-09-14
FINANCIAL NEWS
AND COMMENT
Support Of Banking Interests
Attracts Shorts and Acts as
Brake on Decline.
FOREIGNERS LIQUIDATING
Developments Favorable to
Money Markets and Stocks
Are Pending.

Although banking interests are not
suggesting the probability OF great ex-
pansion in stock market activity in so
far as operations for public account are
concerned and although they are un-
willing to accept the theory OF some
market followers that prices are Jockey
Ing for position In a sustained advance.
they arc disposed to take moro than
passing interest In the current level Of
market values. And incidentally they
are watching the large outstanding ehort
account, together with the persistent ef-
forts Of certain speculative groups to
drive market values to materially lower
levels. Indeed It may be said that sub
stantial financial interests have added
to their holdings at current low prices
Furthermore, II may be said without
fear Of contradiction that II conditions
favorable to a big bull market suddenly
should develop It would be found that
stocks were In extremely strong hands.
Some evidence Of the dangerous position
of the short interest was reflected in the
ease with which prices moved up In yes
tcrday's trading, notably In the late af-
ternoon. and In the scarcity of stocks to
meet the sudden demand.
Banking interests provided the mar
ket with certain amount of support
which attracted active covering of short
accounts. Banking interests have II
within their power to do some old fash
ioned squeezing, but It Ia not wholly safe
to count upon action Of the sort imme-
diately. as 1t is not certain liquidation
has run its course. Liquidation has been
II is said. the sale for foreign account
Of American securities held as collateral
against bank loans made In this market,
both by LONDON and Paris. but notwith-
standing the source the sales have been
absorbed by this market, even II for
temporary holdings only.
Stocks OF the highest grade have been
knocked down to a s to per cent. basis
and better. and In many quarters the
idea Is growing that despite occasional
raids against the shorts and passing up
ward swings on technical conditions no
lasting important adjustment Of the
income basis through progressive price
improvement is probable in the autumn
months.
The man. however. who owns good
stocks as IN investment has no warrant
for turning his holdings into cash be-
cause OF war conditions which have
brought about abnormal market condi-
tions The war is not to be permanent.
while American industrial progress will
run on with the ages.
Buying OF stocks yesterday was par-
tcular!y good In United States steel,
which was taken by important houses,
while on lighter scale Significant buy
ing was reported in Union Pacific and
Missouri Pacific. Perhaps II was the
character of the demand for United
States Steel more than any other factor
which encouraged active purchases in the
last hour BY the room element, which
exhibited enough nervousness to draw In
or reduce short aces Ints throughout the
list OF prominent issues
Call money again was Arm, with the
maximum quotation OF S per cent. and
the close at per cA.se, while time funds
likewise continued TO rule at relatively
stin rates, THE SUN understands that
certain developments are pending which
will have a favorabl> influence upon the
money market situation, and therefore
upon stocks.
Russian rubles were we'll above the
low of the preceding day. but the chief
feature Of the foreign exchange market
was presented by francs. which were
more active than had been recorded In
many weeks at a marked advance, as
compared with Wednesdays closing