The sun., 1918-08-27
FINANCIAL NEWS
AND COMMENT
Delayed Railroad Contract and
Profit Taking Cause
Stocks to Halt.
L. s. TO WITHDRAW FUNDS
Tight Money Expected to Con.
tinue Pending September 1
Maturities.

The delay In publication OF the con-
summation OF the railway rental con-
tract and a disposition to take profits In
stocks which have risen rapidly. together
with inside knowledge OF the proposal to
withdraw large amounts Of United States
deposits, brought about a halt yesterday
| In the upward movement OF stocks, but
the features were remarkable absorption
of issues which showed resiliency. an
| undertone Of strength and an advance OF
| a point or more In a number OF issues
| The sales OF 100000 shares yesterday
and $4,000 Saturday were financed with
| call money at per cent on mixed col
lateral and 81 per cent. on all indus
trial. and with little or no recourse to
the money pool. Few II any loans were
| called by the banks. To-day, however
the banks. In order to care for the with
drawal OF S75,000.o00 Government de-
posits. may have to call some loans. al
though a large movement OF this sort Is
not anticipated. The programme now Is
for the withdrawal of $4,000, 900 addi-
tional on Thursday. making a total OF
$3.50, 100000 for sshe=sweek. compared to
actual Withdrawals Of $139.59S.000 on
, four days last week. This money is be-
ing transferred from New York to aid
In moving the crops and for other Gov
| ernment purposes. and the transfers have
been made necessary in part by the
! small response Of corporations and indi-
viduals to the offering OF per cent.
| tax certificates OF indebtedness. Bank
ers now predict that the Treasury De-
partment will have to announce next
| Saturday a new Issue OF $500, 000. 900 or
| more certificates OF Indebtedness for
| subscription by the banks.
In view Of this situation influential in
terests look for no relaxation In money
conditions this week. They point out
that preparations must be completed to
care for the disbursements on Septem-
Der / Of dividends and interest, to say
nothing OF the maturity of S192,1S6, 900
United Kingdom notes and S25,000.000
other notes. or course. the money used
in these transactions will>be ready speed
lily for reinvestment. but none the less
preparations must be made for them in
advance. The effect. II is expected. will
be contraction in volume OF transactions.
which babe fair to assume large proper
lions on Saturday and yesterday. Bar
ring unforeseen Developments the UNDER
tone OF Strength should continue. More
than IS per cent OF the days business
yesterday was provided by United States
Steel common. which made a new high
record for the year at IFS. but closed with
a net loss of only quarter. Canadian
Pacific. Mexican Petroleum and Republic
Steel had a setback Of a point or more.
but elsewhere the net losses In the active
list were confines to fractions, while net
gains OF a point or more were shown In
American Beet Sugar. Cuba Cane Sugar.
American Steel Foundries, American TEL
ephone and Telegraph. International Pa
per and Worthington Pump. Trading in
bonds was ouieter than 1t has been of
late and there was no especial feature.
There was no supply OF time money
and call rites were the recent maxi
mum. In foreign exchange the feature
was a sharp rise in francs to 5.57, an
advance OF 4 centimes. Neutral rates
were a trifle firmer.