The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-11
FINANCIAL NEWS
AND COMMENT
Further Favorable War News
Stimulates Stock Market
Perceptibly.
TRADING VERY LIVELY
Entire Active List Moves Up
ward, Except General Mo-
tors, Which Declines.
TRADING VERY LIVELY

Sustained strength and unusual ac-
t.vity for n short session OF the stock
market in August was the outstanding
feature OF yesterdays session. A typi-
cally dull midsummer episode had been
anticipated. but after opening at higher
levels strength, breadth and activity de-
veloped and the largest volume for
two hour period In a number of weeks
was the result. The war news over
Swallowed all other considerations and
traders could do nothing but mark
prices upward in view of the enthu-
siasm and a moderate amount OF IN
vestment buying. Not only has the pres
ent attack by the Allies In Picardy. the
Lys Valley and at other points achieved
emarkable results. with the capture OF
prisoners since July IS appro1tmating
$4,000, but the situation on the west
ern front indicates the possibility or
big developments in the near future.
The market, nevertheless, is still largely
a traders session and public buying does
not seem to have made It's appearance
In any considerable volume. At the
same time the forces initiating against
a broad upward swing and an expansion
In speculative trading are still at work
and the bank statement gave little en-
couragement for the immediate atera-
ton Of stringent money conditions and
credit restrictions on everything but
business essential to the war.
While the entire active list moved up
ward with the exception OF General Mo-
tors, which lost 5 points on account OF the
order eliminating on and after January
the production Of passenger motors. the
most impressive demonstrations OF
strength were made by stee!s. One OF
the largest single transactions In United
States Steel was 10000 shares at 11ls.
but after this was contaminated the
stock rose to 112%. within point OF the
best price for the year. only "a points
below the top in 1917. Cruc!ble Steel
gained a point and a half and Republic
l%. Marine preferred crossed par, but
slipped back to 99Is for a net advance OF
n. The rails were uniformly firm.
Owing to loss OF cash TO the Federal
, Reserve Bank of $15.433.000 the surplus
reserve fell off $14.3s2.s10 to $40.s3s.3SO.
according to the actual bank statement.
| Notwithstanding a redeposit of Govern
| ment funds to the extent Of more than
| 81 20. 900, 900, Of which more than one
third was redeposited on Friday. There
| was a noteworthy expansion OF above
| 81 100000 in loans. making the total
! the largest since June Is and with one
exception the largest since May %.
The disappointing feature of the weekly
| financial statement was the increase OF
S43.000.O00 in borrowings by member
banks from the Federal Reserve Bank
making the total Of bills discounted and
bought In excess OF s525.00O. 900. Until
/ this item is reduced materially 1t Is dim
cult to see how stock market activity to
any considerable extent can be financed
The feature of the {oreiRn exch nge ma r.
ket was the continued advance in sterling
and francs and a corresponding ease II
neutrals The rise was due to short Gov
ering by foreign exchange dealers. who
were induced to cover by the war news
! and the report from abroad that British
aud French authorities are considering
measures TO peg francs and sterling at q
higher rate on account OF growing Amer
lean expenditures in those countries.