The sun., 1918-12-28
FINANCIAL NEWS
AND COMMENT
Stocks Generally Firm, With
Renewed Liquidation Of
Liberty Bonds.
STRENGTH NOT SUSTAINED
Weakness Of Low Priced Rails
STRENGTH NOT SUSTAINED
Weakness of Low Priced Rails
Has Disturbing Effect on
General List.

StOCh IudIhoty WHO
some points Of weakness in stocks which
were subject to scattered liquidation,
was fairly strong all around yesterday.
But although the session was vastly
tho financial community has become
familiar of late. and although there
were indications of a more manifest
disposition on the part of those who are
short of the market to cover outstand-
Ing contracts, the continued weakness
OF Liberty bonds and a number of low
priced rails had disturbing effect upon
the trading. The general list OF securi-
ties which have come to be known as
the standard industrials displayed a
fair amount Of strength. which, how
ever, was not very well maintained to
the closing. Undoubtedly a large part
of the transactions represented short
covering on the part of those who had
put outlines earlier in the week. but
there also seemed to be more confident
buying In hope Of something more than
trading rally on technical considera-
tons.
The overshadowing influence OF contin-
ued weakness In Government bonds. how
ever, Vas disconcerting and unquestion-
ably prevented a more encouraging show
of improved technical position of the mar
ket. 1t would appear that the market has
been heavily oversold in the sessions of
the last few days but until there can
be a more sustained selection of con-
structive features. and until the financial
community feels that the readjustment
to peace conditions has been sufficiently
broad to warrant the speculative ele-
ment to look upon the brighter side of
I1-ith
without saying that nothing more than
trading rallies on technical grounds can
be expected of the market. However,
there appeared to be more confident buy
ing of a number of specialties, which
are affected in a lesser degree by the
REIMBURSEMENT than some of the standard
industrials. The fact that the lower
priced rails were weak in spite of the
strength displayed elsewhere again
served to emphasize the uncertainty sur
rounding the railroads and the failure
Of the Railway Administration TO take
steps that would tend to clear up the
uifavorable impressions which recent de-
velopments have left in the mind OF the
investing public.
Despite the unfavorable aspects OF the
trading, there were a number of strong
spots which held their gains all through
the day. These included for the most
part the shipping shares. the tobaccos.
feathers and food stocks, which recently
have been about the only individual
features of the market to display any
thing like consistent strength. But
whatever encouragement that might
have been derived from this was more
than offset by the continued selling OF a
number OF low priced rails including in
particular New Haven, ST. Paul pre-
ferred and co., on and Baltimore x
Ohio. There v no new developments
| in connection with the weakness here
| it simply represented an appreciation of
considerations which have been known
| for some time back. and which con-
| Germ the position which the roads would
find themselves in IL the Government
should suddenly decide to turn the roads
| back to their private owners. Neither
was there any new reason for the YeA-
/ ing of Liberty Bonds. II represented
continued liquidation on the part of
small investors and moro substantial
selling on the part of large corporations
which happen to find themselves In
need of cash at the present time.
/ The money situation was again I'M
! changed Call loans continued to be
made on the stock Exchange yesterday
at from 6 to 6l. per cent all day. with
/ out any indications of improvement UNI
til after the January LIST interest pay
ments and other year-end financial
! transactions have been concluded by the
banks There was some time money
available. however, and the rate stu
| continued below per cent. in the case
Of 3O-day loans. The foreign exchange
market was still quiet, with no impor'
tant change during the day. Nearly al
of the neutrals. however, continued &c
display firmness. Bank clearings fol
the week aggregated s6,l95,2i2,OO0. &
decrease OF 1912 per cent. from las
weeks showing, but an increase of 20:
per cent. compared with that of the same
week a year ago. This shows that th'
country is still on a war basis, so fal
as the credit situation Is concerned.