The sun., 1918-08-14
FINANCIAL NEWS
AND COMMENT
Confident Buying Of Rails
Sends Many Of That Group to
Years Highest Levels.
INDUSTRIALS ALSO FIRM
Sterling, Francs and Lire Ad-
vance on Gratifying War
Reports.

AHc etoch IuArkot Iestoruby eHSVuh-
tered profit taking after an early ad-
vancins movement both in industrials
and rails, but the net gains for the
day in the active list ranged from a
fraction to nearly 8 points. with frac-
tional weakness shown In only hve
minor issues. On the whole the trend
vas upward. thanks to a slight improve
ment in the money situation and despite
a traders impression that the rise had
gone far enough. Enthusiasm. dulled
by torrld weather conditions, was not so
much in evidence as It was on the pre-
cedins day. and the reports Of Western
buying through wire houses went un-
confirmed. The volume of trading was
slightly reduced and the one-Quarter of
l per cent. decline In call money rates.
together with the appearance Of two
millions Of thirty day time money. half
new and half renewals. was regarded
more or less as a fleeing episode. bank
ers expecting no real improvement in
money conditions until Just before the
start Of the fourth Liberty Loan cam
paign. The most interesting feature yes
terday was the rise In foreign Govern
ment issues and In sterling and franc
exchanges. which responded rapidly to
gratifying war developments.
Interest in industrials was again sub
ordinated TO trading In rails. which were
uniformly strong. although they closed
somewhat below the best prices Of the
day. Many of the rails were marked
up to new high figures for the year.
and the dominating factor was the
strong probability that tho conference
In Washington to-day between Director
General McAdoo and representatives Of
| tho railroad corporate organisation and
| security owners will sweep away all OBJ
jections to the prompt settlement OF
the railway rental contract. which has
been a financial stumbling block for
many weeks. The war news was en-
couraging. indicating as 1t did further
| advances In the face Of the enemy's
stiffened resistance and the possibility
of big developments in the near future.
But the market. except for further in
vestment accumulation both Of rails
and industrials. was In professional
| hands and at times was lacking In ac-
tivity and interest. The closing. while
dull. was firm.
The buying In rail- stocks, which
| suggested a growing confidence in the
| benefits to be derived from Government
operation. carried the average of repre-
sentative issues to new record prices.
The percentage of transactions in the
| rail group to the total volume was not
| far from 40 per cent. compared with an
| average for the year to date consider
| ably below 20 per cent. New highs for
| 1913 were made by Canadian Pacific.
st. Paul common. Rock Island common.
/ Great Northern. Illinois Central and
Northern Pacific. St. Paul preferred
| and Norfolk and Western duplicated the
best price of this year, while all other
| active rails were just fraction to 3h
points below the 1918 top. On Monday
| the industrials were reactionary during
the upward progress of the rails. but
yesterday they moved in sympathy. and
United States Steel advanced IL points.
closing with net gain of y. Other Arm
industrials were American Sumatra.
with an advance Of l y points: American
Writing Paper preferred up 2& points
and Tobacco Products up ~ points.
The only weak issues were the motors.
General Motors showing a net loss of
points and Studebaker u points.
| In the bond list Liberty 3hs dupli-
Gated the years high. Anglo French IS
at 95 reached a new high for 1918 and
there was strength throughout the for
| eign government department. The fea-
lures of the foreign exchange market
were the rise of two centimes in French
francs to a new high for both 1917
and 1918. weakness in pesetas. which
declined rs points. and the advance in
the official rate for lire from 7.90 to 7.50.
Francs closed at 6.66s for demand.
compared to the high this year OF 5.70H
and tho high last year of 5.67h. The
decline in pesetas was accounted for by
| the reports of progress in contamination
| Of the Spanish credit, which would lower
the premium on the peseta. Tho only
feature in time money was the loan of
$4,000. 900 for thirty days at 6 per cent.
by a national bank. of which half went
for renewals and half was new money.
Call money opened and renewed at 6 per
cent for mixed collateral and 6h per
cent for all industrial. The subsequent
rates were one-fourth of per cent. lower
all around.