New-York tribune., 1918-04-08

quite naturally the security mar
lets of the last week have been in a
state OF suspended animation. Little
was to be expected of stocks and
PONDS in the face Of the beginning
OF the second phase Of the Battle of
Ficardy and the proximity of the
third Liberty Loan campaign, which
was formally set in motion at the
close of the week. The stock market
was an intensely dull affair through
out the early portion Of the period.
with prices moving aimlessly and the
volume OF trading falling to the
smallest total in great many
months. Such interest as reflected
IN the market was mainly protcs-
sional in character and converged
upon the so-called pool specialties. SO
that the price movement bore little
or no significance. Toward the end
cf the week stocks displayed slightly
rcactionary tendencies on the re-
newal of the German efforts to break
through to Amiens, but the market
closed strong on Saturday, when the
advices from abroad brought reas-
surlng reports Of the successful re-
sistance of the French and British
armies to the fresh Teutonic on
slaughts. 1t is evident that the
speculative and investment markets
will for some time to come remain
under the shadow of the great battle
row raging in France, the outcome
ct which will probably not be decided
for many days, and possible for
weeks. The Liberty Loan campaign.
row started on the first lap, is likely
to divert attention from the markets.
During the week just ended the stock
market has from its general per-
formance. again indicated the extent
&c which the great decline in the
closing months of 1917 resulted in a
drastic cleaning out Of weakly held
accounts and built up strong tech
nical position. What effect the re-
cent ruling of the Attorney General
Of the United States on the new i'm
post on the borrowing and lending
of stocks will have on short selling
remains to be seen. 1t has been
pointed out during the week that the
tax makes operations for the decline
rather costly, and it is not improb-
able that the Encouragement of
short selling might in time, through
the reduction of accounts of this
character, impair the technical posi-
ton. The whole question of the
value and Importance of short SELL
ing as market stabilizer has thus
been reopened.
One year of active participation in
the war by the United States has
great changes in the Sc
curity markets. The averages tell
the story. A year ago the average
r:ice of twenty railroad stocks used
in The Tribune compilations stood at
o5.15. At the close Of last week the
average price Of the same rails stood
at 68.45, a decline of 1850 points. |
The average of thirty industrials
year ago was 90.37, whereas at the
close Of last week the price was
1858. During the year the average
price of ten representative railroad
bonds declined from 91.41 to 78.76.
ten industrial bonds from 95.41 to
90.31.
The record Of performance of in
dividual stocks during the first year
Of our belligerency is interesting.
United States Steel Corporation
common stock, the markets specula-
tive leader, was selling at lis the
day before war was declared on
Germany. Previously in 1917 it had
sold at 1853. Subsequently on the
decline that continued during the
greater part Of the last half Of the
year Steel common fell to 791a. Last
week it was traded in around 90.
Union Pacific Railroad common
stock sold at 139 the day before we
entered the war. Since then it has
sold as low as 1914. The current
price is around 100. Other stocks
present similar striking price
changes, due in large part to the
Of the financial mar
kets TO the new order Of things ush-
cred IN when the United States
joined hands with the Allies.