Evening star., 1917-05-27
BANKS SEEM WILLING
MARKET SHALL GO UP
Advances of the Week Largely Con-
fined to War and Semi
War Issues.
BY the Associated Press.

BY the Associated Press.
NEW YORK, May 26.-United States
Steel achieved the new high record of
184A in the course of today's brief. but
active trading and carried others of its
class to top levels for the current move
ment. The vigorous buying extended
to coppers, oils. motors and a wide va
riety of equipments and specialties. in
cicding sugars. A striking feature of
the latter division was a 23-point rise
in South Porto Rico sugar to 200.
With one exception, virtually all the
developments of the day were of con-
structive character. Rubles slumped
were in part responsible for the ir-
regular easing of prices in the later
dealings. Backwardness of rails also
served to restrain bullsh enthusiasm
Causes of Other Advances.
Coppers were assisted by news that
producers had again advanced quota
tions for the refined metal on orders
deliverable in the third quarter of the
year. Petroleums probably owed their
material gains to intimations of fur
ther rise in crude and refined products.
A drive against the shorts accounted
for the strength of General Motors and
Stude baker at gains of Y and points.
respectively.
Industrial Alcohol forged steadH;
ahead at an advance of 312 points to
13s. and extraordinary activity was
shown by Corn Products at an extreme
gain of points. Total sales of about
175,000 shares were in keeping with Ne
activity of recent days. Steel usual
furnished fully one-Quarter of the
whole.
Important changes in the bank stsee
ment denoted the shifting of moneys ~
cident to the fiotation of the two-bil-
lion-dollar loan. Actual reserves of
local institutions in their own vaults
decreased by more than S32.000,0v0.
while reserves in the federal bank in
creased over s69,000.000. The loan ex-
pansion of more than S5S,000,00O was
traceable in large part to the great in
crease of market operations. Excess
reserves increased almost $4,000. 900.
restoring that item to above $176.oO0.-
600, against barely $90.00O,o00 the first
week of the month. Bonds were irregu-
lar on a small turnover, total sales (par
value )aggrevating s1.s75.ooo. United
States were lower by u to l per cent
on call during the week.
Factors in the Market.
Cumulative signs pointing to the sue
cess of the liberty loan, the Senate's
proposed amendments. to some of the
more unsatisfactory features embodied
in the war tax measures, 1taly's aggres-
sive movements on the Austrian from
tier and the improved crop outlook
were factors of varying Importance in
tnlS week s DuSy STOCK market.
Daily dealings which averaged fully
a million shares were accomplished
without strain to the money market
and evidently without discomfort in
any quarter. save to an overconfident
short interest The leadership of United
States Steel at an extreme advance for
the week of 1926 points to the new
maximum of 134h was accepted as evi-
dence that banking interests are not
averse to higher prices.
In the ODini0n of conservative ObServ-
ers, the rise would have carried great
er conviction had it been less restricted
to war and semi-war issues. Accession
OF public inquiry became more pro-
nounced in those shares after an
nouncement of further advances in
prices Of finished iron and steel.
Judging from the course of rails.
which were only moderately firm. when
not irregular or heavy. less optimism
was shown regarding the attitude of
the interstate commerce commission in
the matter of increased freight rates.
Rails were under additional handicap
from the weakness of minor issues. no.
tably Denver and Rio Grande, preferred.
and New Haven. due to specific rea-
sons. fractions and other utilities owed
their reversals to similar reasons.
Technically the market has been
weakened or rendered more vulnerable
by the enforced covering of an meal
culable amount Of short contracts.
What Is commonly designated as "a
healthy reaction" may, it is feared, re-
suit from unforeseen events Of an unfa-
vorable character.
The Russian situation was again a
most uncertain quantity. Exchange on
that country hardened, but was suf-
fciently erratic to indicate revival of
apprehension. Loans to the British and
Italian goyernments were in the ma
ture of commercial credits and applied
to purchases already contracted for in
this country.
Trade authorities reported a slight
check in various mercantile lines, con-
sequent in part to unreasonable wealth
er and increased economies