The sun., 1918-07-02
FINANCIAL NEWS
AND COMMENT
Settling Down Process Of Last
Week Continues in
Wall Street.
PRESSURE FAIRLY LIGHT
Dealings In Industrial Shares
Show .Losses-Money
Market Steady.
PRESSURE FAIRLY LIGHT

The stock market yesterday continued
the settling down process which was in
evidence In the latter half of last week.
with the result that the majority Of
active issues showed some loss OF ground
at the finish. The pressure was not very
sharp. however, except in the steel
shares. which have experienced the
largest advances recently and upon
which most Of the activity has con-
verged There was little or nothing in
the way of new developments to account
for the weakness and in the absence Of
anything which might have been ex-
pected to exercise a more or less de-
pressing influence on prices, the most
plausible explanation OF the action of
the day's market was to be- found In
technical considerations within the mar
ket itself. That the revival Of talk
concerning the new taxation programme
In connection with the published reports
OF the Federal Trade Commission on
profiteering was a contributing factor
In the weakness was not to be doubted.
But in the light of the fairly general rise
which has taken place. especially in the
industrial department for the last two
or three weeks yesterdays weakness
was not a all surprising.
In short the days market was little
more than a continuation of the same
tendencies that were present last week.
The fact that the Federal Trade Com
missions report came at time when
the bear pressure was beginning to make
itself felt and when the tendency to cur
tail dealings was all the more pro-
Hounced by reason OF the Forthcoming
holiday, probably accelerated the de-
clines. There was nothing either sur
prising or new in the commissions re-
port so far as the financial district
was concerned. The fact that taxes not
alone on incomes but on war profits as
well are to he increased very materially
unoer the new progra mme which is being
drawn up by Congress and the Admins
trat!on leaders. was pretty well outlined
in n statement by Secretary NcAdoo
some time ago. The inference. at any
rate, was such as to need no further
statement from the Trade Commission
to impress upon the financial community
the fact that it is facing the possibility
of heavy taxes during the current year.
There was no other news of an interest
ins character. and under these circum-
stances the market as a whole was not
Of great significance.
The most pronounced weakness was In
tie last few minutes, when the seliins
movement was accelerated somewhat by
shares. Steel common sold down to
104ls. as compared with the outset price
of lO7Ia. and there were proportonate
losses elsewhere In the industrial de-
partment. The standard rails. however
in which speculation as been held to a
minimum, sold off sympathetically from
a fraction to as much as a point and a
half in special instances. such as Read
ing. but altogether this group held fairly
we'll in face OF the weakness. The spe-
cialties were relatively weak, that Is to
saw. II ose shares in which there was any
interest, such as the tobacco group. In
dustrial Alcohol. and a number OF others
On the other hand. there were also a
number of strong spots among the fndi.
vidual shares, Cuba Cane sugar and
Brooklyn Rapid Transit making fail
display of strength despite the pressure
elsewf ere. 4 rather curious feature oil
the market was the strength OF Ameri'
can Telephone and Telegraph. There
was no outward reason for this other
than expectations that the Government
may intervene and take over lines in or
der to settle labor difficulties.
The money situation was not greatly
cf anged over the week end. Call fund:
were literally supplied between 3ha ant
A.. per cent, as was to be expected ir
view Of the sharp increase in excess re-
| serve as shown in last Saturdays banl
statement. There was practically M
change I'm time rates. The foreign eN
change market was quiet, with rates un
changed to many OF the leading centres
About the only exception to the rule wat
| a 1 point advance in Italian lire. wfici
reflected further restrictions with re
spect to the stabilizing of that exchange