The sun., 1918-08-22
FINANCIAL NEWS
AND COMMENT
Outstanding Market Feature
Was the Speculation in
Liberty Bonds.
8 1-2S REACH NEW LEVEL
Deposit Withdrawals Will
Drop to S2O,O0O,OOO From
S5O,OOO,OOO Average.
8 1-2S REACH NEW LEVEL

The feature Of the stock market yes
terday paradoxically was the specula-
ton In Liberty bonds. the 3hs exceeding
all previous records by selling at 1o2.o6
and closing near the top figure. Out Of
an original issue of $4,000. 100000 ap-
proximately s1.4oo. 100000 are outstand-
ing, the balance having been converted
into later issues. The supply Of all tax
exempt securities Is diminishing, and as
result OF the tax programme. which Is
near to enactment into law. the value of
such issues Is rising. Total bond sales
were $500. 900. Of which about $1,000
600 was represented by transactions in
Liberties. While bond trading expanded
the volume Of stock transactions was
restricted to 100000 shares In round
numbers. with flrmness in the early
trading giving way to unsettlement in
the afternoon. Nevertheless the net de-
clines were limited to fractions, and a
handful of active stocks advanced from
l to 3 points. Again the dealings in
stocks were professional and lacked Sig
niflcance. Without expansion in volume
on account OF the money strinSency the
list was broader than it had been Of late
and there was largely increased at
tendance in commission houses.
The Withdrawals of United States de-
posits. which aggregated $4,000, 900
for the first three days this week, will
be cut to S20,00o.o00 to-day and will
cease thereafter, at least for few days.
In consequence a slight relaxation or
rather an omission OF recourse to the
money pool is expected to-day and a
,h,t To- in v,nnnv
conditions tomorrow. Yesterday, how
ever, the operations Of the money pool
were relatively small and commission
houses reported more liberality in the
grant of call money assistance. although
there was no change in the maximum
rate. The war news showed further
progress against the enemy with the
possibility of more important develop
ments in the near future. 1t was as
serted in Washington that the House
Ways and Means Committee had nearly
tax measure. but the announcement re-
garding the railway rental contract is
still withheld.
The strongest active stocks yester-
day were American Hide and Leather
preferred. with a rise Of as points and
a net gain Of 3h points; General Mo-
torss with a rise Of IA points and a net
gain OF 1 point; Columbia Gas. with a
rise of as points and reaction of 1
point from the high; Railway Steel
Springs. with a net gain Of IA points.
United States Steel. after making an
advance of y in connection with be-
coming ex-dividend S4.25 q share a week
from Friday. ended the day with no
change from Tuesdays final.
There was no supply Of new time
money and with moderate recourse to
the money pool call rates were per
cent. on mixed collateral and 6h per
cent. on all industrial throughout the
day. American Can paid on in cash
100000 Of its notes, and It was an
nounced that Canadian Northern will
meet sl0.00o.o00 notes on September
with a cash payment. 1t IL understood
that s1s2.7s6.000 United Kingdom notes,
which mature September /. will be paid
with cash furnished by the United
States Government in connection with a
further credit to our ally. In the for
eisn exchange market pesetas declined
40 points and francs advanced a CEN
time. Swiss francs were down points
and rates on Scandinavian nations were
easier. Elsewhere there was no feature.