The sun., 1918-11-19
FINANCIAL NEWS
AND COMMENT
Process Of Contraction Con-
tinues in Wall Street
Stock Market.
DROPS INTO - OLD RUT
Marine Preferred, Motors and
Most of Steel Shares
Show Strength.
DROPS INTO - OLD. RUT

Although there were some movements
In yesterdays stock market which were
obviously not altogether professional. the
business OF the day resulted for the most
part from operations from the trading
| element. The volume OF business con-
tinued the process OF contraction which
was in evidence in the last half OF last
week, and with few notable exceptions
in the case OF specialties there was no
very definite price trend in any part OF
| the list. In the main 1t was the same
kind of market which Wall Street ex-
perienced on last Friday and Saturday.
with the difference that there was less
| of 1t. Those interested In surface fiuctu-
ations may have found something sig
| nificant in the rise of a few motors, In
dustrial Alcohol and other specialties,
| but 10 experienced observers tire session
meant nothing more than a further indi-
cation that the market is returning to
the rut which 1t occupied prior to the
last upward swing.
There were several very good reasons
why the market should be traders
affair under present circumstances, and
| no doubt the one which figured most
prominent in the days business was the
money situation. With the receipt Of the
letter sent out on Saturday by the AS
| ISOLATION of Stock Exchange Firms the
rank and file realized, II 1t had not been
realized previously. that there is little
| likelihood OF a change in present re-
/ strictions on speculative funds. Fur
| thermore, facing the second payment on
| the Fourth Liberty Loan this week, II
was not at all sure whether or not there
would be some temporary curtailment
| OF Stock Exchange loans. This argument
was or course ridiculous, inasmuch as
brokers' loans have reached the low
! level desired. but together with devel-
opments in the peace REIMBURSEMENT sit
! uation It served the purpose of bringing
about restricted market, which is what
Wall Street in the main unquestionably
wants for some time to come. However
| that may be, sentiment In conservative
| circles was much more confident than a.
the closing last week, and although these
| interests realized that the readjustment
| has just begun, the feeling is quite gem
eral that it will be accomplished much
! more satisfactorily than had been sup
| posed.
The most interesting feature OF the
| share list, 50 far as price movements
were concerned. was marine preferred
This issue, after the severe shakeout 1t
experienced on Friday and Saturday,
| came back strong yesterday, recovering
IA substantial part OF its loss. Indus
| trial Alcohol gained consplcuously as
| contrasted with other issues, and the
motors were generally strong. az were
the majority of the steels. But else
| where price movements were narrow
and the general list for the most part
was disposed to go fractionally lower.
especially the old line investment rails
The explanation OF the strength OF the
steels IN n drifting market was n purely
! technical one. These shares. along with
some OF the specialties, had been sold
| rather heavily for the past week. and II
was only natural yesterday that there
should have been some recovery. The
| only reason. in fact, that It was confined
| to such narrow proportions was on ac-
count OF the reported cancellation of
munitlou orders and on account OF the
labor situation. which was brought into
| the foreground by Samuel Gompers's
speech on Saturday.
| Aside from n large supply of call and
| time funds there was no change in the
money situation. Interest in this con-
nection centred in the payment OF the
second instalment on the Fourth Liberty
Loan on Thursday. In this district 1t Is
expected that about 1921 ,000, 900 will be
received and in the country at large
about 81 900, 100000. Payment of s621.-
600, 900 in New York would about COM
! plete the financial transactions involved
in the last loan in this district The
foreign exchange situation was quiet.
with both neutrals and belllgerents
lower. The only exception to the rule
were Spanish pesetas, which advanced
! points, Bonds were active and firm
A gratifying feature in this connection
was the statement that the 100000, 900
| Liggett & Myers issue had been over
! subscribed several times.