The sun., 1918-08-24
PRICES BUOYAN'T IN
VICTORY. MARKET
Entire List Advances on War
News and Investment
Purchases.
FOREIGN. BUYING. NOTED
,...4 .-.a.
Announcement Made That New
Call Money Market Will
Operate Next Week.
FOREIGN. BUYING. NOTED

| What some interests called the fore.
runner Of real victory market appeared
yesterday. when the active list. aided by
buying for foreign account from Amster'
dam and Scandinavia, and the continue
| ton Of steady Investment purchases
here, advanced from I to 8 points. II
was taken for granted in influential
quarters that the enemy's power Is or
the wane and that the end OF the wal
has been brought much nearer by the
remarkable successes scored by the Allies
during the past week. Money, conditions
were too tight, however. to permit more
than a moderate expansion In trading,
but the increase was due not to specula-
tive buying but to investment buying,
which all interests desire to encourage.
The collapse Of the attempt to get a
ruling from the Federal Reserve Board
as to whether loans for stock exchange
purposes were essential or non-essential
was a favorable factor. The statement
that Director-General McAdoo would an
nounce on Monday the terms of the
standard railroad rental contract. grant
ing all the contentious Of the Railroad
Executives Advisory Committee and the
Investment Bankers Association except
the right Of court review and an atefa-
ton OF the acceptance clause, was also
favorable.
These factors. however, in the opinion
Of experienced observers. were not SUI
ficient to account FOR the consistent
strength shown throughout the nve
hours trading. The war news was moro
striking than II has been Of late and
consequently It had a greater influence.
The rise Of French Republic SIS to a
new high record. the gain in Canadian
Pacific of s points and the pronounced
xx,no In In All
changes were cited as an indication of
good buying from foreign sources and
predictions Of an improved market as
soon IS The September / disbursements
are taken care Of and as soon as greater
relaxation in money occurs were freely
made. Be this as It may. there was no
Improvement in money rates yesterday.
although commission houses reported
more liberality In the volume Of call
loans. There was no need to have re-
course to the money pool. but an impor-
tant lender OF money stated that the
banks were we'll loaned UP and would be
unable to relax conditions before the
completion Of the September disburse-
ments.
Just before the close the announce
ment was made that new call money
market would be inauRurated on Mon
day by J. p. Morgan & Co. The rate for
Monday will be Az per cent and the
collateral will be acceptances eligible for
discount At the Federal Reserve Bank.
By this announcement the danger Of
strangulation Of the infant discount mar
ket * averted. It was explained that
the new call money market instead Of
decreasing the supply Of money for
Stock Exchange purposes will be Of d.
rect aid because in times Of stringency
,.,ltt - n
and the borrowers will Immediately re-
discount the acceptances at the Federal
Reserve Bank. Stated briefly ]. p. Nor
gan L Co. will take away from the
Clearing House banks and the Federal
Reserve Bank. some Of the burden Of
financing acceptances and will give the
last aamed greater scope in their func-
ton Of loaning first to meet Government
and war needs, second for commercial
purposes and third for Stock Exchange
requirements
In the active list net gains Of a point
or more were made by rails. chemical
oil. equipment and leather issues. The
steels advanced only fractionally. but
there was scarcely a single stock in the
active list to show even a fractional net
loss. There was no supply of new time
money. and call money loaned at 6 per
cent. on mixed collateral and 6h per
cent on all Industrial. In foreign ex-
change the feature was the decline In
neutrals. pesetas falling OF IS points on
the cable from Madrid that Spain had
extended commercial credit equivalent
to $500. 900. 900, double the amount that
had been anticipated. There was a furry
in franc exchange, which reached 5.6lh
francs TO the dollar. the highest since
1916. This advance was attributed to
the highly favorable war news.