The sun., 1917-09-06
FINANCIAL NEWS
AND COMMENT
Stocks Recover Partly From
slump, Only the Rails Fail
ing to Rally Much.
GAINS ARE I TO B POINTS
Profits for Shorts who Had
About Faced--Bulge Hits
Many Outsiders.
GAINS ARE I TO B POINTS

Traders who covered short contracts
In Tuesdays sharp decline In prices In
the Stock Exchange and who then as
sumed n position on the long side OF
speculation, and operators who bought
stocks on that decline on the tlaurs' the
market bad been overso.d and soon
would rally on its technical position,
were able to liQuidate their accounts In
yesterdays transa ctions at substantial
profits And the spectators who made
substantial profits aid not 60 home with
the idea In mird the stock market had
turned permanently in the direction ,of
higher prices
The general character OF talk heard in
Wall Street was not At ell bullsh. de-
spite tho sharp upward movement. a
movement based almost wholly upon con-
ditions within the market rather than to
outside developments. To be sure, the
financial district had the rumor prices
for steel and copper would be fixed on q
level which would be decidedly favorable
to the producers. but that merely served
to help along an advance which was on
It's way before any intimation had been
made prices might be fixed In favor of
the steel men and the copper men.
The extent Of the slump In Tuesdays
operations following a long period OF
gradually falling prices. naturally placed
the market In an extremely dangerous
condition for the enthusiastic shorts who
sold stocks on that decline In the expec-
tation rally was out Of the question
Many outsiders sold short Tuesday and
lest their money yesterday.
There are always outsiders who buy
at the top OF bull market and sell at
the bottom of a bear market without
ample margins to carry them through a
period when the market goes against
them. Big operators in the Street will
not admit the bottom of the present bear
market has been reached but they
traded yesterday on the theory the time
had come for squeezing the little shorts
for at least sizable turn.
In addition to the buying by the shorts
purchases were reported for the account
OF bargain hunters who had been at
tracted by the relatively low prices at
which high grade securities could be OBJ
tained. Perhaps the advance may run
on to-day. but 1t is worth not!nS that
prices closed yesterday under their high
| points. that heavy realizing was under
| way In the last hour and that short SELL
ing was resumed In many issues, par
ticularly In the steels and coppers
Final gains were from more than /
point to more than points, with ex-
cept!ons presented by Mexican Pet,-o-
!eum, Texas Company, Utah Copper and
Industrial Alcohol. which made even
greater Improvement United States
Steel closed up ~. against a maximum
advance of AZ points. with some OF the
buying Of the stock of the .nvestmen,
variety. but the greater part of the
operations in this issue, as we'll as ir
other prominent industrials. was specu
lative in character.
| The rails did not share to an impor
tant degree In the upward movement
while In the early dealings new low rec
ords for the year and many years wer,
recorded. New York Central. for instance
selling down to 75% and 81. Paul to So Il
the latter recovering to 64. Traders ar
still bearish on the rails, although som
OF the best banking authorities in tn
Street are suggesting their purchase a
long time propositions
Money was easier, but no great amour
OF call accomm odation was obtainabl
under per cent. while there was n
| idea in banking circles the market wa
to run into an easy position. The some
what acute situation in money, however
has been relieved by the temporary de
post by the Government in certain loca
banks for funds set aside In the shape O
loans to the Allies aggregat,ng. II Is said
about $50, 900,
On August e5 tho Federal Treasur
statement showed that out Of a total of
little more than $4,000. .oOo. 900 In loan
and credits to the Ar1eis for which pro
vision had been made more than u.
73o. o.o00. 900 had actually been granted
leaving an unexpected balance whic
could be used for a money market emer
gency.