The sun., 1918-10-20
FINANCIAL NEWS
\ AND COMMENT
Stock Prices in Market Drop
After Period Of Strength
and Activity.
ARRAY OF NET DECLINES
Steels and Oils Recede Into
Extreme Weakness-Stand-
ard List Fairly Firm.
ARRAY OF NET DECLINES

From a rather feverish display OF
strength in the first hour the stock
market turned yesterday to pronounced
weakness and In the last few minutes
Of the session prices declined with little
INTERRUPTION to the close. which was
weak and unsettled. The standard list
exhibited fair degree Of stability. but
many OF the recent speculative favorites,
including the steels and oils. went into
extreme weakness and the final figures
clines. The most conspicuous movement
was in Steel common. which dropped
back to 110A In n manner suggesting
very complete liquidation OF profits and
the presence Of some well defined bear
pressure. In a word. the whole trend Of
things indicated clearly that the process
ses were at work to restore the list to
q better balance and to clear away the
unsafe superstructure that has been
raised as a result Of the violent upturn
In the peace speefalties In the last
week.
From the point of view OF specu-
lative experience the session was not
surprising. Something usually hap
pens as a sequel to such an excited
bullish demonstrate ton as on Thursday
and Friday to eliminate the unstable
features that have been raised 20 en-
Enthusiastically. PROFESSIONALLY the In
centive for the movement could be traced
to the money situation. and TO the be-
lief that prevails in some quarters that
when the Liberty Loan campaign Is well
out of the way the money restrictions
will be clamped down tighter than ever.
Although there have been as yet no In
dications OF disapproval from the com.
mIttee as a result of the weeks course
Of the market II goes without sayins
that yesterdays market indicated steps
in this direction In the near future. Al
least there was nothing else to account
for the declines. The news continued
good. and there was no other develop
ment which could be construed as un-
favorable to the market unless It was
the reply to the Austrian peace note
This was warlike in tone, but II could
hardly have provided reason to sell the
market .s-
The day began with a show Of con.
fdence In the entire market. FRS
prices were up more than a point ir
come cases. and there were continued
bullish demonstrations in Steel. Southern
Pacific, Union and Baldwin In particu
lar. linen IOllOWcu M outpoofih6 VI
profit taking sales, which checked tn,
upward tendency and threw the marke
into great irregularity. and which FINALS
developed into extreme weakness. Steel
after having sold we'll above ia, wal
run down sharply to l10A and the res
OF the list acted in sympathy. although
holding fairly we'll In some special cases
where separate influences were at work
General Motors. for instance. retained
substantial part OF its 10 point rise. while
Mexican Petroleum declined more thai
6 points. Texas Company went Lowell
and American Smelling reacted points
The rails held well. although easint
gradually at the finish. Trading wal
active, being maintained on a scale Of
a million and a half transactions fol
a full fve hour session.
The bank statement showed de-
crease In surplus reserve of $21.s21.00o
which brought that item down to thu
smallest total since September IA last
The important feature Of the statemen Mt
however, was with respect to the de
crease In loans, which amounted to prac'
tically S10oo0.o0o. This showed con-
clusiveIy that there has been very little
increase in Stock Exchange credit in
yolved In the rise Of the past week
There was no change in the foreign
exchange market. Neutral rates were
steady. recovering moderately after the!I
continued decline OF the last week.