The sun., 1918-08-25
FINANCIALNEWS
AND COMMENT
Securities Score Rapid and
Substantial Gains in Ac-
tive Market.
- NEW HIGHS FOR YEAR
Acceptance Call Money and
Favorable War News Slim
ulate Trading.
~ NEW HIGHS FOR YEAR

| In an unusually strong. broad and ac-
! tive market for Saturday session
stocks yesterday continued the upward
movement manifested SO conspicuously
on Friday, and the entire active list ad-
vanced from / to IN points, while one
stock. Canadian Pacific, achieved rise
OF SIS points and a net gain Of 5k
points. The fnals generally were within
n fraction of the best prices Of the day.
and United States Steel common, with
sales Of $4,000 shares and a net gain
Of "a points. was the undisputed leader
Of the market. This issue becomes ex
dividend $4.25 a share next Friday, but
this fact had little to do with its
achievement Of a new high record for
the year. Undoubtedly short covering,
owing to the radical change in the mar
/ ket's character on Friday. was RESPONSE
| BILE for the transactions In large blocks.
| Tho turn in the money outlook. follow
4 ing the news that many New York insti-
| tutions, including the Federal Reserve
Bank will follow the lead of the Nor
gan firm in loaning out call money at
Az per cent. on acceptance paper. as
well as the germ of victory market,
| elated the longs and increased the ap-
| prehension of those short of stocks.
| A call money market Of broad pro-
| portions and based on acceptances Is
now assured, and its purposes, as ex-
planned by bankers, is to protect Stock
Exchange loans and to prevent their
calling in case OF sudden need. When
funds are required in hurry lenders
| will turn to the acceptance market
rather than the stock market. because
acceptances carry the rediscount privi-
iege at the Federal Reserve Bank, an
opportunity dknied to Stock Exchange
| collateral. Further indications that the
German power Is on the wane, while the
power OF ourselves and our allies is in
creasing. added to the discomfort of
| those who had taken the bear side Of
the market. While the market for rails
| was narrow the gains in this depart
| ment were fully as vigorous as the ad-
| vances in industrials. the former issues
| responding to the expectation of an an
| nouncement tomorrow Of the consum-
| nation OF q favorable railway rental
| contract.
New high records for the year were
shown by the following stocks yester-
day: United States Steel, 1141a Union
Pacific, 1891 American Hide and
Leather common, 21h preferred, 94k a;
Canadian Pacific, 172k st. Paul COM
mon, 81; preferred. s0&; Northern Pa
cific, s1; Railway Steel Spring. 67% :
Southern Pacific. ssN: United States
Rubber. 63h, and Virginia-Carolina
Chemical. Sc. In the bond department
the features were q rise OF 2h points
In New Haven IS, strength in all for
eign government issues. including new
high records in French cities and Anglo
/ French bonds. and firmness throughout
the Industrial and railway bond list
Total bond sales for the two hours were
$5,609,000 and total stock sales 315. 600
shares.
The bank statement disclosed an in
crease in surplus reserve OF $29.2S1, 1850
making that item $5s,365.230. Cash re-
serve with the Federal Reserve Bank in
creased $33,103,000. which was par
TALLY offset by an increase of s24,3l7,-
900 in deposits, against which reserve is
figured. In order to meet the with
drawsl during the week OF s139.5S9.000
United States deposits the banks con-
tracted loans and discounts to the ex-
tent OF s55,414, 900 and at the same time
increased their borrowings from the
Federal Reserve Bank to the extent OF
$123. 900. The Federal reserve state
ment showed loss in gold reserve Oh
SIS. 10000 through the operation Of the
gold settlement fund and an increase OF
Member bank deposits increased $29,.
000. 900. The total amount of bills dis
counted and bought now stands at thu
top figures Of $677.6S5,43
In foreign exchange the rise OF francs
to $50, the best mark since June 20
1915; the strength In sterling and tn,
weakness Of all neutral exchanges wer,
the features. This market was un
wontedly active for short session.