The Washington times., 1917-02-04
Report Of Unrestricted Sub
marine Warfare Cause Stock
holders to Sell Precipitately.
SHORT INTEREST TO RESCUE
Bargain Seekers, Bankers and
Others Ready With Sup
porting Buying Orders.

was confronted this week with q
situation that many have been look.
ing forward to as sufficient to brins
the public back into the market and
stimulate the Imagination OF the
trading element. There was no leak
this time that was Immediately ap
parent. at least. The news that Ger.
many had revoked her pledges to the
United States with respect TO sub
marine warfare did not reach securi-
ties market circles until the market
had closed Wednesday afternoon.
Immediately the news was known
those stockholders who had been
loath to part with their holdings de-
'cided with precipitancy to sell out.
Fortunately there was a large short
interest and at the same time q large
number of bargain seekers ready to
buy for cash on the decline. Bank
ing and other large interests were
also prepared to put in supporting
buying orders. The heaviest liqui-
dation already had taken place. 1t is
entirely probable that news of such
Importance could not have come at
a more propitious time. IL there may
be said to be propitious time for de-
pressing the stock market from to
II points or more.
Germany's Move PuzzlinE.
1t is difficult at this time to STATE
definitely whether Wall Street haI
taken the incident too seriously. II
Germany is not attempting to i'm
pose upon a neutral world that Il
has come to regard, whether rightly
or wrongly, as impotent or gulIibls
or both, she stands self-convicted OF
insincerity in making her recent
peace proposals. On this assump-
tion, it may be Justly argued that
those proposals were made merely
to consolidate sentiment within the
empire, to bring the Teutonic allies into
closer communion and to pave the way
for the step which has just been taken
to resume an unrestricted undersea war
fare.
What the Berlin government expects
to gain in permanent advantage by this
step II Is not easy to understand. Hasty
meetings Of neutral cabinets have beer
called. and Indignation Is said to be eife
over this latest outrage. particularly In
Spain and Denmark. These nations and
the other neutrals undoubtedly look to
America to take the lead. and this situa-
ton may conceivably result in a league
OF neutrals that can bode but little good
to the central empire. IL not Immediately
apparent, at least very impertently 50
after the war. when the friendship OF
nations will have a very concrete mean
ing to any late belligerent struggling 10
regain its normal economic status. Al
best the move Is short-sighted. and II
intended to he taken seriously, would
seem to indicate desperation and dis
regard Of consequences that argues that
the central empires no longer have any
thing TO lose
Street Nervous, Sold Out.
At any rate. Wall Street did gel
nervous and sold out. Some bankers
were credited with characterizing th-
German move as a gigantic bluff, anC
they were so far convinced of this
view of the case that they were will
ing to stake something by going into
the market to buy generously wher
they had every reason to believe thai
the market was going lower. In thi!
respect they differed from the bar
gain hunters, who went in wher
prices had reached rock bottom anC
picked up some very good bargains
indeed.
One operator is said to have cleared
$l5, 900 within a few minutes by buy
ing International Mercantile Marine
preferred at the bottom and selling II
at an advance of five or six points
II was the shipping shares which
were the hardest pressed. From five
to more than seventeen points wers
lost in those shares. Marine under
writers were thrown into a quandary
the upshot being that the insurance
business was practically dead both
here and in Boston. The steel stock.
also felt the full force of the blow
an Ar