The sun., 1917-07-28
FINANCIAL NEWS
AND COMMENT
Wall SITS Wistful Watching
Of Washington Produces No
Incentive to Trade.
PUBLIC CONTINUES SHY
Market Is Led Slightly Upward
by Steel Common, on Which
Two Rumors Come Out.
PUBLIC CONTINUES SHY

Wall Street Is watching washington
as q hawk would watch a chicken, but
in it's vigil It finds nothing upon which
to base active commitments In the stock
market At the moment II Is AFRAID to
sell and II is afraid to buy beyond un-
important operations which generally do
not carry over the day and which fail
to give the public an incentive for join
ing In the speculation except in rare in
stances. when for some special reason
an opening Is found by which the nimble
members OF the outside element are able
to make quick turns for long account.
The outsider would like to be bearish
In so far as market commitments are
concerned, but he Is afraid Of the short
side because he knows little about its
so-called intricacies, which to the ordi-
nary mortal seem the particular prop
erty of regular traders in the Stock Ex-
change, stock market experts, as they are
called. The experts, however, are not
making their salt, and according to the
course Of business yesterday they are
not likely to roll in profts in the imme-
diate future.
Nothing came out of Washington to
create enthusiasm on either side of the
speculative account Wistful watching
was not rewarded with anything upon
which important moves might be en-
gineered in either direction, and in con-
sequence the greater number of traders
spent their time In discussing what
might or might not happen to gaivanize
the market into life. making. however.
occasional excursions In various stocks
apparently to keep their hand In.
In most instances price movements
were In the direction OF higher levels
without important gains recorded. There
was some buying Of abe equipment
shares on the theory excess profts of
the companies represented would not be
mulcted as much as those of other
corporations Ono one could say why
there would be discrimination In favor
OF the equipment companies), while
moderate covering operations were re-
ported In the steel shares. chiefly be-
cause 1t was pointed out in the Street
the forthcoming quarterly report Of the
United States Steel Corporation would
mako a record breaking exhibit.
The Street presented another reason
Tor buying Steel common, and that was
based upon the suggestion. which had
no official sponsor. that the big steel
corporation would avoid tho proposed
tax on undistributed profits by paying
over those profits to the stockholders. 1t
was not day and the steel talk was OF
the sort one hears In the hot season.
Railroad stocks were not in demand.
despite the Improvement which was
SHOWN In the earnings Of various COM
paniess notably the Union Pacific and
the probability Of Improvement In the
earnings yet to come for the month of
June. A substantial change has taken
place in the position Of the American
railroads In recent weeks because of the
practical pooling Of interests by the
companies under the backing of the
Government, and although those changes
are not reflected to a great extent In the |
June reports, as they will be In later
the fact such q change has
taken place might be counted upon to |
attract greater interest to the rail |
stocks.
June earnings so far received show. as
\ rule, substantial expansion in oper- |
ating revenues and satisfactory gains in |
operating income. Union Pacific for in |
stance, reporting operating revenues of |
s11,347,66O, as compared with $3.50. .O61
In the corresponding period last year. and |
operating income of $4,452,S95, an In |
crease of $672,774. For the first half
of the year operating revenues increased |
's.o4S,213, and operating income in |
creased $174,5S2. The railroads are |
getting hold of their expenses and It |
more than probable thst in tie |
-est Of the year net returns will make |
l far better showing than in the first |
i've months.
Money was relatively easy, with the |
iemand light. while the foreign exchange |
market was without particular feature,
except for rather sharp decline In 1
'ubles. More gold was withdrawn for |
Export, making for the week $s,711,0OO,
If which $4,696.000 was for Japan, the |
balance going to CANADA. South Amer
ca and Spain. 1t is Interesting to note |
hat for the fiscal year ended June 80
otal imports Of gold were S977,176,026,
he largest on record, and that exports
likewise were heavy, amounting to $751;
'21.225. which would leave net imports
It Sssb.264,s01.