Evening star., 1917-11-08
RUSSIAN NEWS BRINGS
SEVERE MARKET SLUMP

NEW YORK, November 8.-For time
| this morning the trend Of values was In
| the direction Of stronger prices.
The bankers pool of $20O,0O0,ooo
played its most important part yester-
day and on Monday when it checked the
declining trend It's effect was in sight
on the opening again today, but later
midway in the first hour OF the ses-
sion, the list began to display weak,
| ness, not especially pronounced until
after the advent of the noon hour, when
the unfavorable Russian developments
began to exert an unfavorable influence
and the bears were encouraged to test
the list again.
The bankers and the stock exchange
governors have gone far in their efforts
to give stability to markets and check
RECKLESS selling and liquidation by nerV-
Gus shareholders.
According to the best informed brok-
erS on the street, the market now needs
assurance that neither income nor cor
porate taxes will be further increased,
with the suggestion that the next gov
ernment financing shall be in Treasury
bills. practice successful in Great
Britain, and not through long-term
bond financing.
The only action taken by the govern
ment to help security matters was the
statement by the controller of the cur
rency that national banks did not need
to mark down securities held as col
lateral to open-market quotations.
helpful, but not sufficient from a mar
ket standpoint.
There was considerable irregularity
in the action of the market early in the
session. Reading weakened. while New
York Central and Union Pacific were
both f1rmer. New Haven was nearly a
point better, while Canadian Pacific
dropped y points.
Industrials Strong Early.
In the industrial list. shippings. Cru
chile Steel and Alcohol, with equip
ments. were strong early, Steel common
starting with loss, which was quickly
dictionary trend set in
AS result of the Russian news. the
market weakened for 2 to point
breaks The ultimate outcome of tho
much mystery as ever. but the depo-
sftion OF the one man who has upheld
the fighting spirit in the realm may be
taken to mean that small help is likely
from Russia and a larger burden placed
on the United States.
Steel common broke from 957s to
92A, Bethlehem B from S21a to Tx.
smelter, from 761s to 74&, some of the
provement on yesterdays final figures
Brooklyn Rapid Transit. Consolidated
Gas, Interborough preferred and other
utilities were weak and to SIS of.
Rails Suffer Declines.
These latter stocks were not especial
ly affected by Russian news, but by the
difficulty of corporations furnishing
service at fixed price without consid-
Grafton for added costs to make their
dividends.
Turning to the rails, Union Pacific,
which had sold to 113A. dropped to 40.
Reading from IS to 6412. st. Paul
from 40h back to 3s. Canadian Pacific
from 1876. yesterdays closing. to 1874.
and Baltimore and Ohio. from SO to
51H. Other declines were of like pro-
portions. These losses had been sus-
tained during the closing minutes of
the second hour of the morning. with
hour of the afternoon.
Liberty As. steady at par: 3hs. 1882
to 1886.
When the street realized the prob
able effect Of the Russian situation the
selling pressure was greatly increased.
and the bears helped along the liquida-
tion with numerous short sales on a
practically sure thing.
Russian bonds broke badly and rubles
went down to 13. practically nominal
market. as actual dealings in exchange
on Petrograd have come to stoppage.
cientIy serious to bring about drop in
Steel common to $50; Bethlehem B.
74%: Reading. 61A; Union Pacific,
1898: St. Paul. 37A; General Motors.
771s c. ana o.. 441a, and other shares
in like manner.
These quotations indicate losses of 4
to 6A points.
The sales to 1 o'clock were $4,000
shares.
Attempts by shorts to cover in the
last half of the second hour of the aft
ernoon brought very modest recoveries.