The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-07
FINANCIAL NEWS
AND COMMENT
Speculative Interest in Wall
Street Continues to Centre
in Specialties.
PERIOD OF STRENGTH
Industrials Active at Opening,
but Business Soon Be-
comes Quiet.
PERIOD OF STRENGTH

Speculative conditions In Wall Street
preceding day and interest as OF late
continued to centre almost entirely In
the speciality department. There was a
brief display OF strength In certain in
dustrla!s issued at the outset. but as
soon as 1t was seen that there was no
apparent disposition to follow up the
progress made Monday business quieted
down materially and prices, although at
no time showing pronounced weakness.
yielded fractionally to the closing. There
was nothing in news developments which
might have been expected to provide the
speculative element with impulse to
move stocks out OF the rut in which
they have fallen recently. On the con-
trary. the statement OF the Federal Re-
serve Bank calling upon its members 10
conserve credit tended to intensity the
dulness. Notwithstanding Wall Street in
general was disposed to believe this
would not result in further cur,ailment
OF business.
The only difference between yester-
days session and Mondays was the alb
sence of the sharp covering movemen:
which characterized the preceding days
final hour. Whether traders had definite
plans for a continuation of this move
ment yesterday was difficult to say. but
IL they had the statement OF the ederal
Reserve Bank on money conditions un-
doubtedly went long way toward caus-
ing them to delay anything they had in
mind. There was nothing particularly
new in the statement except that it vas
the first time the bank has Indicted its
position as regards money for specula.
tive purposes. Wall Street has known
all along that the trouble with the stock
market was the lack of money to finance
speculative operations, and 1t had been
inclined to believe that not a great deal
Of Improvement could be expected SO
long as the Government continued to sell
certificates at the rate of $500. 90. 900
every two weeks. When, therefore, the
official statement came along it simply
confirmed what the Street had been
suspecting all along. with the least pos
sible disturbance of prices.
There were one or two standard
shares that may have shown more ami
nation than Others. but for the most
part activity converged mainly on the
specialties of tie type of General Motors,
American Sumatra and a few OF the gas
shares. With respect TO these issues the
feeling seems to be growing that they
will be able to convince the proper au-
thorities of the necessity OF higher rates.
Mexican Petroleum was also an active
feature. gaining quite sharply on the
favorable Interpretation which accom-
tsI ha - H.. -
annual report. Otherwise there was
nothing OF interest. steel common
opened about where it closed Monday
and receded gradually to the closing on
profit taking, the losses. however, be-
ing SO small as to be OF no practical
significance so far as indicating any
thing definite az to the future course of
the market. Investment conditions like
wise followed the quiet which character
lied the stock list
The money situation was unchanged.
Call money ruled at from 6 to 6i2 per
cent. for the best part of the session.
and they was very little time none,
available even at nominal quota
tons. all OF which was not surprising in
view OF the statement on the preceding
day concerning money conditions The
view was taken that the new arrange
ment might not interfere so much with
call as with time money, but there was
rot much satisfaction In this in view OF
the fact that no sustained bulish dem.
ors;rat!on can be built on call money
There was nothing Of interest in the for.
'ien exc5snse situation except a slightly
flrmer tone in Swiss francs and frac.
tonal decline In pesetas Cotton con.
t!nued It's sensational advance. gaining
from s. to So a bale on top Of a similar
advance ON Monday.