The Washington times., 1917-04-22
HESITATION SHOWN
IN MARKET CIRCLES
Public Holds AIoof, Doubtful as
to Effect Peace Will Have
on Stocks.

The swift development OF the Brit
ism and French offensive on the West
ern front and steadily accumulatins
indications that the crying need of the
Teutonfc allies is for peace almost al
any price, were outstanding features
of the week closing today. Rioting In
Berlin and elsewhere within the Ger
man empire, and an organized strike
in the capital had a strong political
complexion, since In each case the
demand for more food was accom-
panied by a no less insist mt demand
for electoral reform, not with the re-
turn of peace. but now. Count Won
Reventlow was permitted to write
that the German monarchy could stand
only with victory of the German arms.
Maximillien Harden succeeded in get
ting before the public words to the
effect that Germany should no longer
delude herself with the idea Of win
ming the war.
In Austria, the Emperor and EN-
press and their court were the CEN
trail figures of an imposing religious
service in which. the God of Peace
was implored to be merciful, and his
Imperial Majesty's promise to build
church forsooth. The combined Rus
sian and British advance in .Mesopo-
tamia discloses the weakness of the
Turk Bulgaria is inactive and re-
ceptive as to peace If the Western
world is allowed to get such a picture
Of conditions in the enemies camps,
, IL may safely be presumed the actual
conditions are even worse than de-
picted, that the morale of the central
empires and their allies is sadly
shaken.
Way Cleared For OpenInk.
The determination of the United
States to launch the full power OF its
was demonstrated by the passage in
the House OF Representatives and
. Senate of the $1,000. .0O0. 900 finance
bill by a unanimous vote in each case,
although there is a temporary hitch
over certain amendments. The mag
nitude OF the sum thus voted is EN-
phasiEed by the fact that the total Of
German loans since the war began
was only some 5000 ,000, 900 to "a, ,O00.-
600, 700 greater, Ard gives rise 10 the
question as to low long Germany can
hope to hold out against such a
weight OF potential strength as that
represented by this country. the Brit
tsh Empire and democratized Russia
lAAC IL Otluk
for the offering of the new bonds
was shown by the abandonment OF.
the plan TO issue S2OO.OOO,O 900 Cana
dian Pacific dollar bonds here. the
withdrawal of awards for the Q. 8.
conversion per cent bonds. the sale
Of $4,000. 900 New York Central notes
instead OF bonds, and so on. Also.
speculation in every form is being
discountenanced. The Government
has at last shown an inclination to
take the bankers of the country into
its confidence.
Basis For Cheerful Sentiment.
The influences outlined above, with
the support of United Latin America
becoming more apparent as each day
passes, constituted the basis for
much cheerful sentiment, but oper-
ated to cause hesitation in securities
circles. The public holds aloof be-
cause II is not yet certain what ef-
feet peace will have on stocks. Trad
ing, therefore, is in the hands of the
professional element. which is bear.
ish in the main. Traders were con-
strained to shift their positions
easily by the uncertainties which
each day brought forth. AS was the
case last week, movements were up
or down through short COVERING or
short selling. For the most part the
undertone was firm.
The short interest Is extensive and
therefore sensitive. Those operating
on that side OF the market held them.
selves ready to cover on a moments
notice, but offerings were meager
because the market undoubtedly was
ovefsold, Wall Street professed to
see an inclination on the part of the
Government to refrain from offering
all of the 5000. 900 900 bonds az
once, and that the first instaIlment
would be not more than 81 SOC. .OOO,-
600, as experienced bankers advise.
In the latter-part OF the week trad
ers were disposed to cover part of
their commitments on the theory
that 81 500. 100000 would be sub
Ecribed for so quickly and so en-
Enthusiastically that the enthusiasm
would be communicated to the securi-
ties market and cause an upward
movement. perhaps temporary but
possibly of proportions not to be fore
seen at the present time.
Bond Market Unsettled.
The bond market was quiet through
out the week and more or less unset |
tied The foreign loan issues were |
strong at the beginning. but they did |
not maintain their full gains. The |
staAdard railroad and industrial issues |
were heavy. due mainly to short cover |
ing impelled by the probable effect Of |
Government financing on the general |
market A wide diversity Of opinion |
prevailed as TO whether the new bonds
should be sold at 81 per cent tax ex-
empt ORA or ~ per cent subject to tax
Individual and corporate tax burdens
AZ yet unknown because the war tax
problem must await the disposal Of the
bond offering. had their due influence
In causing some amount Of Liquidation
and not aSlittle uneasy anticipation in
general
Evidences OF the readjusted relations
n this country with the entente powers
we're plentiful The demand Of this
for steel at minimum
prices. and Washington arrangements
Tor the supply Of steel to the allies at
much less than the prices prevailing
heretofore. are symptomatic OF the
lines. The Defense Councils success
n getting copper at half price may lead
% material reductions for our friends
lcross the water. At any rate. the de-
nand for the red metal has fallen away
,ending what the near future may dis
lose. Violent movements in the grain
market. particularly in wheat. followed
he step taken by Canada in removing
ier tariff on wheat and wheat products !