The sun., 1918-12-29
FINANCIAL NEWS
AND COMMENT
Market Rounds Out Week
With General Display
Of Strength.
RAILS JOIN
Bank Statement Shows Drop
in Surplus Reserve Of
$4,000 900.
RAILS JOIN MOVEMENT

Although there were indications OF no
little u~neasness among speculative hold
ers of stocks before the opening, and al
though there was some further
at the outset, h course of prices as a
whole yesterday proved a disagreeable
surprise to traders who have been OPP
Grating almost exclusively on the bear
side OF the market recently, The stock
market session ended the day with all
around strength, following a firm recoV-
cry during which the standard list OF Sc
curities was emphasized by aggressive
general advances in h last hour. Un-
doubtedly a large part of the transact
tons represented usua week end cover
ing operations by the professional and
semi-professional elements, but the trad
ing was again characterized by sustained
breadth and volume, and the session re-
suited In the FIRST important change OF
the average price level for the week, al
lowance not being made of course for the
rise of a few special stocks to new high
figures.
There were no new developments Of a
marketwiee bearing TO account for the
markets strength. But unquestionably
the substantial and excellent absorption
Of stocks that has been progressing on a
scale down, together with the rather
heavily oversold position Of the market.
provided a Arm basis for the recovery,
so far as could be determined, there was
no change whatever in the underlying
condition OF affairs. All the considera-
tons with which the financial community
has been engaged recently remained. as
they have been all along, a eource of
concern not only to the speculative com
munity but to the Industrial world as
we'll However that may be, the short in.
terest in the market had become suffi.
ciently large to expect a rally, II only on
technical grounds. Experienced observ-
ers were inclined to view the market in
a more optimistic ann however. and
| certain aspects OF the trading suggested
that perhaps the rally might be extended
over the first of the year. But whether
or not the liquidation had been com,
pleted the general expectation Is that
the market will return to the nut OF in,
activity from which Il was dislodged
temporarily by the recent selling for the
, purpose OF establishing losses for next
| years income tax returns.
BY far the most important strength OF
the day centred IN the railroad and In
dustrial shares. which have been thu
main targets OF the recent speculation
for a decline and in which the short in
terest appeared to be the largest. In
these particular instances a firm recov-
4 a ths NlllNl ltSulANu III tNNap
fishing the highest prices OF the week
for such stocks as Southern Pacific, the
more important industrials and oils. The
lower priced rails and a number OF
fractions were still disposed TO be weak,
but they turned upward with the rest
of the list at the close. There was a
broad movement again In the tobacco
and God stocks. The only really DIS
tracing features, in fact, were the ma
rine shares and coppers. In the first
place there were continued reports of the
inability OF producers to maintain the
| present price for metal TO disturb these
shares, and in the second place there
were further reports as to the status of
| the Marine deal, which put the whole
situation in an entirely new light. In
the British Government. it now appears
that there has been no understanding al
all. 1t appears, moreover, that there Is
sufficient opposition In that country 10
the plan TO prevent its ultimate consum-
nation.
The bank statement disclosed a de-
crease In surplus reserve of approx
mately SIC, 600. 900. which was accounted
for by a decrease OF $4,000, 900 in re-
serve credits at the Federal Reserve
Bank. This occurred in spite Of an in
crease OF S76, 600. 900 in ~rediscounts
BASED on Government obligations. The
foreign exchange market continued quiet
and without special feature. Guilders
| made a slight advance. while Swiss
francs showed an easier tone with a trI-
fling decline. The rest of the list was
about unchanged from the preceding
days hnal. Transactions in Liberty
bonds continued extraordinarily large
but prices were irmer than on Friday.