The sun., 1917-08-25
FINANCIAL NEWS
AND COMMENT
Better View Of Coal Schedules
and Of Russian Situation
Sends Stocks Up.
OUTSIDE DEMAND SMALL
Many Traders Analyzing Con-
ditiOns Believe Advance Is
a Flash in the Pan.
OUTSIDE DEMAND SMALL

The stock market had its rally yes.
to-day. with prices for the prominent
shares advancing from I to . points and
with even greater strength in few Is.
sues In which the short interest had been
particularly extended. Although the up.
ward movement failed to attract an ac-
tive outside demand. certain small
amount of public buying was reported
while the professional element did some
moderately heavy covering. especially in
the steel and railroad shares.
washington news was far more IA
vorable to the hard coal railroad stocks
than had been expected And the gen.
eral course of affairs in the capital, in
cluding a more optimistic feeling regard
ing the Russian situation. encouraged for
time something In the nature Of bull
lishness in the Street.
As pointed out in this column yester-
day morning the market was ripe for a
reaction in favor OF the advocates of
higher prices. but there appeared to be
no general confidence in speculative
quarters the rally would run into a sus-
tained bull movement.
Holders did not appear to be anxious
TO sell except at substantial advances
over the closing levels of the preceding
day. while the supply Of offerings. which
was unusually small. suggested stocks
were in decidedly strong hands and that
the important Wall Stree; interests
would stand to make most profitable
turn in the event Of conditions in WASH
nston moving more in favor OF sane
taxation and sane price fixing. The ac-
ton taken on hard coal certainly does
not foreshadow a burden for the coal
operators. SO far as soft coal is con-
cerncd the trade is less pessimistic than
hx, a., -
the drastic cut in prices but in respect
Of copper and steel both industries are
still in doubt as to what extent they
will be compelled to cut selling prices.
The Administration as yet has been
unable to reach a final conclusion be-
cause OF the varying factors affecting
the metal industry, although il evidently
has made up its mind that although a
certain price might be just in one sec
tion 1t would be wholly unjust in an
other section. Trade authorities point
out that cheaper coal will mean lower
cost in melting and heating operations at
the steel works. and therefore some re-
vision of cost sheets now in the hands
Of the Government. 1t is an unfor-
tunate thing for the steel industry the
Federal Government has been unable
80 far to formulate a cohesive working
plan for the regulation o. that industry
but the steel men believe that just
50 soon as such a plan is announced
no great difficulty will he experienced in
adjusting the trade to IL. assuming the
price level is to he just both to the
Government and the producers.
Some Of the spccialties made further
advances in the last hour OF trading but
the general buying movement showed
little of the vigor OF the earlier session
while most OF the industrials lost ground
under renewed pressure from the pro-
fessional element. General Motors was
an exception. making its best price In
the final trading: likewise many OF
the rails
but the decided absence Of an active
buying demand for outside account and
the heavy falling of in tranactions as
compared with the total Of the preceding
day served to strengthen confidence on
the part Of various traders that the
advance had been nothing but a fash
In the pan and that the general ten
dency Of prices must continue 10 be In
the direction OF lower levels. There
is still large outstanding uncovered
short interest.
Money on call was easy with little
business reported, while in time funds
the undertone was hrm Bankers show
no disposition to put out large sums for
fixed periods, and 1t is probable this
attitude on the part OF the lenders Will
continue. Indeed 1t Is probable II will
grow more pronounced with the ap-
proach of the next Government imam
cling ard the increased deman nds which
must be made upon the market incl
dent to the gathering and marketing OF
the crOps