The sun., 1917-08-01
FINANCIAL NEWS
AND COMMENT
Covering Starts Market Up
Early, but Late Sales Wipe
Out Most Advances.
PUBLIC Is STILL AL0OF
Professionals Change Tack
Trading Light, With No
Promise Of Activity.
PUBLIC rs STILL AL0OF

Brave efforts are being made BY bull
ish interests in the financial district 10
push the stock market into an active
advancing affair, but so far those efforts
have reflected little beyond the good In
tentions Of the relatively few persons
who insist upon believing the general
list OF securities may be carried to sub
stantially higher levels. And when the
market becomes oversold and prices ad-
vance as a natural sequence of technical
conditions the optimlsts see in the move
ment the beginning Of their long her
aided advance under the impetus OF pub
lie buying and support from the promi-
nent financial interests.
Spasmodlc rallies recently have taken
place. The short interest has been some-
what reduced, and prices, as a rule. are
above those of week ago, but in so
far as the general attitude Of the public
and the substantial interests is concerned
the position Of the market is about the
same as II has been for weeks.
In yesterdays operations a covering
movement. which had gained some
strength on the preceding day, again was
in evidence in the forenoon dealings, but
session price movements were in the d.
rection Of a cheaper range. Neither the
early advance nor the subsequent de-
cline attracted public operations, al
though the actual volume of business
was decidedly heavier than on the pre-
ceding day, when trading was unusually
light, even for this dull war time period
in Wall Street.
1t was a market In which the shorts
finished their covering without the ad-
vance bringing in an outside element.
And with the completion OF that cover
ing and In the absence OF new buying
the professional element naturally turned
its attention to the other side of the
account. 4.
To hear the talk in the commission
houses and in banking parlors one does
not have to stretch Imagination to sec
many moro days of lifeless markets.
barring. OF course, the development Of
some startling factor with direct bear
ing upon the war or upon the country's
industries. There is more bearishness
in the houses and among ordinary trad
ers than there is bullishness, although
this sentiment Is directed wholly along
speculative lines. 1t is not based upon
the assumption the country is going 10
pieces or that real values are to de-
preciate. 1t Is sentiment based upon
the slowness OF things in Washington
and the weary wait for the enactment Of
the revenue measure.
Even though our corporations may
have to do a great deal of adjusting 10
new conditions incident to the progress
OF the war and war financing. the Street
as a whole may not be sid to be bear
ish over the future of American invest.
| ment securities, which represent the IN
| dustry OF this country OF vast resources
Even crop failures will not upset our
| generally strong foundation, Regarding
| the crops, some rather adverse reports
were received yesterday from the West
particularly from Kansas, where II wal
| said the hot weather had practically
| ruined corn.
Reactionary tendencies which have
developed in various lines of trade in
recent weeks doubtless have cut down
the earnings OF the United States Steel
| Corporation on new orders, but that the
concern is still working overtime on old
orders is reflected In current reports
| from the industry. And that in the
second quarter of the year net earn
| ings were not on a record breaking scale
Is not alarming in view of the fact
! comparison was made with the March
| quarter. which was the best by many
millions OF dollars in the history of the
| concern.
Net earnings OF more than $50, ,o00, 900,
shown in the June quarter, doubtless will
prove disappointing to the Street. but
they were extraordinary nevertheless
They were so big the directors felt
themselves warranted In declaring
another extra dividend OF per cent. on
the common in addition to the regular
" per cent And as a matter of fact
those earnings were phenomenal, with
actual gross results larger than in the
first quarter. tho decline in net being
due to the fact the corporation deducted.
before figuring net, upward OF $4,000
600 for income and excess profits taxes.