The Washington herald., 1918-02-27
N. Y. STOCK MARKET
HAS UPWARD, TREND
War Stocks Lead. But Rise Is
General.
BY BRoADAN WALL.

New York, Feb. 22.AThe under
lying strength of the stock market
was demonstrated again today when
just a little professional manipula-
tion applied in the right places con-
verted a decline into boom. The
close was actually buoyant under
leadership of the war stocks of
which Baldwin was foremost.
There was no talk of war or
peace in the stock market. but
merely talk of values unappreciat-
ed. Nothing In Won Hertling's
speech encouraged thoughts of
peace. nor was there any outward
evidence OF peace coming from
other directions. The rise may be
set down as proof that the bottom
of the reaction, begun a week ago.
was reached. Leading bankers have
not believed anything more than
a reaction was in progress and
therefore accept the recovery of to-
day as a matter of convenience.
This recovery is all the more cheer
ing because the news that accom-
panied the reaction was of a most
desperate character. II the. basis
had not been strong prices would
have collapsed. The upward move
ment was therefore resumed with
much more confidence than the feel
ing with which it was being carried
on at the time the reaction be-
gan.
Baldwin was the star performer. In
common with a dozen other high
grade stocks it is selling too low in
comparison with its earnings
In the present circumstances peace
would be a tremendous bull argument
on stocks and war is almost as great
an argument. Continued war may
hurt the country as a whole. but
owing to the mechanical methods of
production-the mass D d u o n,
which Is a feature OF modern indus
try-vast numbers of individuals may
go to war, robbing the small indus
tries of their man power, but the big
concerns have to be kept going at full
capacity in order that the war may
be won. Besides, there are thousands
of little business men who are be-
ginning to have nothing more to do
than trade in the stocks of the big
businesses.
In addition to other factors Wall
Street took a good deal of satisfaction
today in the announcement that B.
NJ. Baruch. its favorite son, had been
made head of the War Industries
Board.
Money was easier, the call rate fall
ing to per cent Easing of funds
was probably preliminary to a general
lowering of money rates in prepara-
ton for the next liberty loan.
Positive announcement made in
INnnOraGd fhof hn ha
at a 41-2 per cent rate had no in
fluence because that is the rate which
has been indicated by stock market
movements for month.
The financial world was pleased at
Japan's action in lending s25.OO0, 900
to France. Wall Street hopes Japan
will occupy Siberia, thus hedging the
Germans on the east and furnishing
the Japanese people an outlet west
ward that will do away with the
Japanese problem in the United
States. Good cheer was also seen
in the direction of Mexico.
Cop2ers and smelling stocks were
heavy because Of labor troubles and
because on account of these troubles
the smelling people propose to raise
the smelling rate.
Shipping stocks were strong under
leadership of Pacific Mail, which ad-
vanced more than three points. They
are all making remarkable profits
and almost any market movement
can be justified in them. The same
is true of Tobacco stocks, of which
American Sumatra was leader to-
day. Wilson stock was up because
of its large earnings.
st. Paul directors are expected to
defer declaration of all dividends
at their meeting Thursday on the
ground that they do not care to act
until the railway bill passes Con-
gress,