The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-20
FINANCIAL NEWS
AND COMMENT
Railroad Stocks Under Great
Pressure and Decline
in Market.
ALL INDUSTRIALS LOWER
Dealings Show Only Slight In
crease Over Recent Dull
ness-Bonds Drop.
ALL INDUsTRIALs LOWER

There was another session OF unsettie.
ment and decline on the Stock Exchange
yesterday, these features being the most
pronounced of the week. Dealings were
not on a scale OF activity much in.
creased over recent dulness, but during
four-flfths Of the session the transac.
tons represented great pressure on a
large group OF the railroad stocks. which
for the last few days have been In q
position suggesting reactionary sensitive.
ness to the adverse considerations in.
volved In the railway situation. The
selling movement here was not espe-
cially pronounced as contrasted with
other recent sessions, but weakness was
an outstanding feature and carried the
suggestion that possibly the market had
entered into a fresh stage of decline In
the course Of the readjustment from a
war to peace basis. The rails were
not the only weak points, however. All
of the industrials went lower but they
afforded a better degree of stability than
some other departments.
Again yesterday the principal consider
atfon involved in the markets weakness
was the railroad situatiess. The overnight
announcement that there was no inten-
ton OF turning the roads back on Janu-
airy 2, while II tended to reassure the
financial community. still left some
doubt as to what might be expected
after the current session OF Congress
especially in case 1t Is found impossible
to reach an agreement on the problem
The inference was naturally drawn that
unless there was an agreement by this
time the roads would be turned back
and when in the early afternoon
Director-General McAdoo stated that
there was a possibility of lower freigh,
rates next year. selling pressure in
creased and the whole department went
to lower levels. However the railroad
problem was not the only consideration
involved in the days business On the
contrary, there were indications that the
usual end Of the year liquidation by
those who wish to record present stock
market losses in their income tax re.
turns was again assuming important
proportions. This selling of course, was
not alone confined to the rails, but II
was factor which tended to increase
the weakness as we'll as the unsatis-
factory aspects Of the trading.
A further and even more disturbing
feature OF the days business was the
acute weakness of Government bonds.
All of the outstanding issues went lower,
the second, third and fourth issues max
ing new low records on a large volume
or business Toward the closing the
selling here subsidized, Sand they pre-
sented more normal aspect, but what
little encouragement might have been
derived from this was overshadowed
entirely by the weakness OF the rails, all
Of which recorded lowest prices during
the last hour. The general list of indus
trial securities were weak In sympathy
with the rails, but as a whole held their
ground fairly well, as did many OF the
recent speculative favorites in the spe-
cialty list The tobaccos and oils, for
Instance. were only fractionally lower on
the days movement, while the average
decline in the railroad and Industrial
list ran well over a point. Traction
shares also developed fresh weakness,
especially Brooklyn Rapid Transit, which
made another new low record.
, Notwithstanding the payment OF the
third instalment on the last loan. there
was a distinct improvement in the money
situation. Call funds were offered freely
all day. and there appeared to be a
larger supply OF time money available
than for some time. So far as the loan
transaction was concerned II appeared
TO have very little influence on the trad
ing. Approximately all OF the proceeds
have been paid in previously in this dis
trict and while there was about 81 ,500,-
100000 still due from the rest OF the
country, II was not apparent that the
banks here had been called upon to any
great extent to finance the payments out
of town. The foreign exchange market
was quiet and rates were not greatly
changed from the preceding days clos