The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-15
FINANCIAL NEWS
AND COMMENT
Stock Market Still Two Sided
but Strength Pre-
dominates.
TRADING VOLUME SMALL
Evening Up Transactions Com
prise Most of Days
Business.
TRADING VOLUME SMALL

The stock market was still a two
sided affair yesterday, although on the
whole strength predominated. Trading
continued in small volume and un-
doubtedly evening up transactions made
up a large part of the days business
There was rather free profit taking on
the short side by those who make II a
rule not 10 carry stocks over a week
end. and also some selling among the
specialties by spectators who closed
out accounts that the latest bulge In this
direction made too profitable to carry
on longer The tendency to take profits
| on the selling side was probably
strengthened by the presence of dis
position to take a more favorable view
Of the immediate future of the market
But 70 far as the action OF the market
itself was concerned there was nothing
to ipdcate conclusively that an inn
portant recovery in prices Is imminent.
although 1t may be said that the general
list presents a somewhat lopsided APP
| pearance.
1t was not apparent that the news
Developments had any greater influence
on the trading than they have exercised
lately. But unquestionably the subetan-
tial and excellent absorption of stocks
on a scale downward during the week
afforded some reason for the attempts
which were made to cancel bearish con-
tracts At any rate there was no dis
position whatever to continue the ir-
regular movements OF the last few days.
although undoubtedly there still remains
enough scattered selling power TO keep
the market in the same position it has
occupied for the greater part of the
past week. However, 1t would appear
that the greater part of the railroad and
industrial list has been oversold, and
while there Is no tendency toward reck-
less speculation II goes without saying
that the speculative element Is figuring
on a trading rally for at least part of
the coming week. So far as this is
concerned, however, there does not seem
to be any manifestation OF tendencies to
carry the rally any further than the
technical stages so long as the uncer-
tainty Of occurrences to effect both sides
OF the market remains such a prominent
factor in the transactions as It has In
the immediate past.
The most important strength in the
market was in those shares which have
been the principal targets OF the recent
selling movement. Steel was a strong
feature as were most OF the other In
dustrials and specialties, including in
particular Allis-Chalmers, American In
ternational and Linseed, all of which
X.
The traction shares also experienced a
moderate recoil from the low prices
recorded in the last hour of Fridays
session. but a number of other individual
shares which were strong throughout the
recent reactionary movement expe-
rienced fractional declines on week end
profit taking on the long side. The rail-
road shares, however. were heavy, for
no further reason than that which has
governed prices in this direction of late
There was no special selling, except that
which came from the professional floor
traders who took advantage of the
heaviness of the stocks and the lack Of
buying power to press them lower. The
bond market was quiet and without any
special feature.
The bank statement showed decrease
in surplus reserve of approximately S3O,-
100000, which was accounted for partly
by an increase in demand deposits OF
SIS, 100000 and partly by the loss of
cash reserve with the Federal Reserve
Bank Of New York amounting to about
100000. The statement also revealed
a substantial loss of Government depos-
its. which confirmed the reports current
In money circles during the past week of
heavy Withdrawals from local institu-
tons by the Treasury Department.
There was no special feature in the for
eign exchange market. Neutral rates
were slightly lower and sterling and
francs continued firm, but otherwise the
market remained about unchanged from
the preceding days closing. Bank clear
ings continued large, according to the
weekly trade publication. despite the
curtailment of much of the war activi-
ties. In practically all OF the large
cities the clearings for the past week
showed large increases over the same
week a year ago.