The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-01
FINANCIAL NEWS
AND COMMENT
Liquidation in Stock Market
Caused by Money Restric-
tons Runs It's Course.
PEACE SHARES ADVANCE
Mexican Petroleum Moves Up
ward Though It's Antics
Are Being Investigated.

Stocks acted yesterday very much as
might have been expected as a sequel
TO the feversh selling movement which
agitated the share list throughout
Wednesdays session. Tho markets
tone was stronger from start to finish.
and although the recovery did not go
very far. It was rather firmly main
tanned. and went to suggest that about
the worst Of the liquidation occasioned
by the recent money restrictions has
run It's course. so far as the standard
shares are concerned. There was
little further selling at the outset under
which prices again gave way. and the
best part of the list moved to lower
levels. But as soon as this had been
completed quoted values turned strong,
and a Arm recovery set in as the SEES
sion progressed. the various aspects OF
the dealings indicating that, while the
setback had effectively accomplished q
reduction In loans. 1t had in no way
changed the optimistic temper OF the
market.
From the recovery there was only
one explanation, aside from technical
considerations, and that was that q
| sufficient amount OF liquidation had
been completed to bring the loans back
to the level demanded by the Money
Committee in its letter last week to
the Stock Exchange. 1t may have been
| that the criticism which has been direct
ed by intelligent observers against the
methods used in bringing about cur
tailment OF activity mad something to
do with che cessation of the selling.
At any rate the selling movement which
has been carried on all OF the current
week subsidized, and wall street appeared
| to have recovered almost completely
from the severe case OF blues which
seemed as much responsible for the
recent state OF affairs as tho Money
Committees restrictions. How much
the encouraging war news, which In
cluded confirmation OF the surrender
OF Turkey. and pointed indications that
Austria would do likewise. figured in
the days trading was dificult to de-
termine. although II goes without saying
that such consideration undoubtedly ex-
ercised some influence on the consuuc-
! tive side of trading.
| Whether or not all OF the liquidation
has been completed. It would appear that
! Wall Street for the time being has be-
| gun TO sidetrack the money considera-
| lions as market factors for those which
are being supplied from the scenes OF
military operations. At least this was
the inference from the trading in the
last hour. At any rate, the line Of de-
| marcation between the war and peace
| stocks was drawn rather sharply 3gain
and although the war stocks moved up
ward along with the rest OF the list the
most substantial advances occurred ir
those shares which have become known
as the peace Speciahies. Steels advance
for instance, was only a fraction Of q
point. whereas Mexican Petroleum
Royal Dutch. the coppers. motors and tc
some extent the rails fiuctuated NOR,
widely and were in better favor with tn,
professional element. Mexican Petro
leum's advance in fact was one of tn
most sensational features of the session
in that 1t took place in spite of the in
> vestigation being conducted into III
movement by the Stock Exchange ant
in spite of the criticism that has beer
directed at its recent market course from
other quarters.
There was no apparent change In III
money situation. Call money continue;
to be supplied in good volume, and Their
were some reports of a small volume o
time money. Altogether it would ap
pear that the money situation Is mucl
more favorable than the Money Commit
tee would be willing to admit. although
OF course the withdrawal OF a large par
of the Government funds on deposit wit
New York banks might change the situa
ton overnight. In this connection
was learned yesterday that notice ha
been given that about 10 per cent o
these funds must be withdrawn to-day
The amount probably will be in tn
neighborhood OF 100000. Franc
were somewhat easier in the foreig
exchange market. and neutral rates wer
slightly hrmer. aside from which Their
was no important change during tn
day.