The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-08
FINANCIAL NEWS
AND COMMENT
Stock Market Regains Normal
Quiet and Prices Show
Fractional Gain.
SCOPE OF TRADING LIGHT
Rail Shares Make Recovery
and Most of Standard List
Advance Slightly.
SCOPE OF TRADING LIGHT

In the stock market yesterday. FRI
days excited and semi-demoralized price
movement was not continued. The ses-
SION was quleter from start to finish
and all Indications went TO confirm the
impression that the new restriction i'm
posed upon the money situation was the
accidental and not the real reason for
the abrupt fall of values on the pre-
ceding day. There was no overnight
change IN the status of the market. and
II this episode had furnished ccssion
for acute financial alarm II Is a reason
able inference that Fridays declines in
stocks would have been depressed into
pronounced weakness again yesterday.
Instead, the general list made a partial
recovery. Trading was OF course re-
stricted TO some extent by the Jewish
holiday, but in the main the market
gaze a somewhat encouraging impress
sion OF its position materially for the
better as a result OF the thorough house
cleaning of accounts on the previous
day. and the general trend. despite a
good deal OF the usual week end irregu-
larity. was distinctly upward. with
nearly all standard shares showing
fractional Improvement the close.
Overnight consideration OF the action
Of Stock Exchange authorities with re-
spect TO money revealed no further
alarm in this direction. On the con-
trary there was a disposition to regard
it as constructive influence under the
present extraordinary conditions. II
was realized that there was no intention
OF disturbing credits. In fact. the only
thing that was really new in the state
ment was the definite ruling that there
could be no further expansion Of brok
ers' loans above the present outstanding
aggregate. That any expansion above
this amount would not be tolerated 70.
a moment. however. has been fully un-
derstood in the financial community for
some time. There was OF course some
criticism from a purely speculative view
point as to whether 1t would not have
been better to have combined Fridays
action with. the statement issued re-
Gently by the chairman of the money
committee and had Il done with. This
would have no doubt prevented Fridays
confusion. but aside from this the gen.
eral view was that II had gone a long
way toward clearing the atmosphere of
question that has been puzzling the
financial community for a long time. In
this respect, at least. it was encourag
ing.
This was Immediately recognized at
the outset yesterday and after some
further scattered liquidation prices at
once responded. The recovery was con-
tinued during the first hour and for the
greater part OF the second under the
combined influence of short covering and
investment buying by those who consid-
cred the present level Of prices attrac-
tive. but toward the finish there was
slight reaction from the high. The
liquidation in the rails. which made its
appearance following the publication OF
the railroad contract, seemed TO have
also pretty we'll run its course. and there
IL, Nos
common. which bore the brunt Of Fri
dayA selling came back fractionally
along with the rest of the industrial list.
There was special strength also among
few of the individual issues of the
character OF Burns Bros, United Cigar
stores and some OF the motors. Else
where there was nothing of great inter-
est The investment LIST was quiet but
firm.
The bank statement revealed an in
crease in surplus reserve of s3.3s7,OoO,
ode partly to an increase OF $l5.7000O0
in Government deposits and $4,000
900 addition to reserve credits at the
Federal Reserve Bank of New York.
The most interesting thing about the
statement, however. was an Increase IN
loans OF approximately s12O,oo0,00O.
This showed beyond all doubt that the
recent volume Of business on the Stock
Exchange had involved some expansion
of credit. and in a general way ex-
planned to some extent at least the rea-
son why the money committee selected
Friday as the occasion TO request daily
statement from members OF the eN-
change as to their loans. Further de-
| clines in neutral exchange featured the
| foreign exchange market. All except
! Spanish were lower and there was spe-
cial pressure against guiliers. Francs
| were lower also.