The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-31
FINANCIAL NEWS
AND COMMENT
Stock Market Prices Again
Show Heavy Downward
fMovement.
INFLUENCED BY STEEL
Reduction of Common Divi-
. dend Affects These Shares
and Others in List.
INFLUENCED BY STEEL

Stocks moved further down yesterday,
the decline being accelerated by the re-
duction In the Steel dividend. There
were other influences at work in the
days business, including the continuation
OF the process of adjustment of the spec
ulative situation to conform with the
money committees latest regulations, but
the most important incentive for de-
cline unauestionably was that which was
provided by the action OF the directors
Of the Steel Corporation at their meeting
on Tuesday. At any rate. stocks were
weaker yesterday than at any time In
period OF more than a month, and
liquidating movement which had its in
ception at the opening was conducted for
the best part of the day and resulted in
bringing the average price of representa-
tive issues down to the lowest level for
the current movement At intervals
trading activity subsidized and slight up
turns set in. but on the whole the market
had a selling character from start to
finish. and the close displayed an extern
slve array of net declines.
That the reduction of the Steel divi-
dend at a time when peace seems to be
almost in sight should involve so thor
ohgh a readjustment of the present price
level was not surprising. The mere cut
ting of the dividend, as matter OF fact,
would not have involved anything like
the decline which took place yesterday in
the share list under ordinary circum-
stances. So far as speculative Wall
Street was concerned. the thing that gave
the matter its Importance was the hint
contained in the action OF the directors
that the country's largest Industrial cor
poration is already beginning to take a
more or less conservative attitude con-
corning after the war conditions. No
doubt there would have been some liqui-
dation anyway yesterday in the further
ance of. the readjustment Of the situa-
ton to the new money restrictions. but
1t goes without saying that 1t would not
have been as extensive nor would the
results have been SO marked had the
market not had to contend with the new
factors which were suddenly brought
into the forenoon as a result OF the action
| OF the Steel directors Tuesday afternoon.
At least this was the inference to be
drawn from the trading.
Naturally the most extensive breaks
were in the Steel shares. where the re-
duction Of the Steel dividend provided
the most effective argument for selling
stocks. These shares broke all the way
from about 1 point in case of the minor
steels to as much as approximately s
points In the case Of Steel common It.
self. The rails exhibited a degree Of
stability that was encouraging in view
of the weakness elsewhere. but in the
remainder Of the market. the war stocks
and peace specialties alike, declines of
from anywhere from l to as much as
10 points were experienced. and more
! IN the case of few special descriptions.
| The fact that prices broke the way they
did was OF course displeasing to the
| financial community in general. which
has felt all along that the money COM
| mittee could have exercised more dis
! erection In the manner in which II has
been handling the delicate affairs OF the
| speculative markets. 1t goes without
saying that some readjustment was
made necessary by the recent enthusi-
astic movement, but IL brokerage opin-
ion Is right It could have been accom-
plished in a less unsetthng fashion than
II has been.
| There was no change in the money
situation. and so far as this particular
market was concerned interest continued
to be confined in the relation which the
money situation has to the present move
! ment in stocks. There seemed to be q
! fair supply of funds available for loan
| ing purposes. both as TO call and TINT
| accommodations. but rates were un.
changed. and with the market declining
rapidly there was little call for IL. The
question of where the present offering,
ars coming from Is still somewhat con
fusing. although unquestionably the
largest part of such amount as is being
offered is coming from out of towr
sources. Neutral exchange continued
the movement which has been in evil
dencs ever since the surrender OF Bull
garia, and there was further improve
ment again in francs. The bond marke
was not affected by the decline In stocks