New-York tribune., 1918-09-30
WALL STREET OFFICE:
Mills Building. IS Broad St.

dE news uOlNlnaLCU Cfle security
markets last week. Despite the Of
fetal embargo on the use of banking
credit for speculative purposes, the
stock market developed tone of
pronounced strength and toward the
end prices rose sharply. At the
same time there was a substantial
expansion in the volume Of activity.
1t was apparent that the basis of
the vigorous recovery was to be
found in the further striking Allied
successes on the various battle
fronts. The financial community,
IKE the rest of the country, has
cached the conclusion from the de-
velopments of the last two months
that while peace is not yet in sight
the trend of events is Enthusiastically
in that direction. That without a
doubt accounts for the tendency Of
stock prices. How much further
the present recovery will carry is
question that cannot be answered.
That will probably depend to a
large extent on money market con-
ditions, although we have seen in
the past week that restriction on
credit cannot always be relied upon
to prevent bulge. However, in the
long run the money market condi-
tion will control the stock market
condition. During the last week
there was again a steady invest
ment demand for various represent
tative shares. This buying is one
of the important factors in the mar
ket at the present time. So far it
has more than Offset any selling
that has been forced on the part of
stcurity-holders who were compelled
to liquidate in order to buy the
bends of the fourth Liberty Loan.
Euring all the other previous war
loan offerings the stock market has
had to take more or less selling of
this character, so that there is moth
ing unusual about it in the present
instance. And in any event the
market is in such an excellent tech
nical position that it should be able
to absorb such offerings without the
slightest difficulty.
Needless to say, with the whole
country engrossed with the task of
selling S6,O00,0o0,000 of fifteen to
twenty year 4 u per cent bonds of
the fourth Liberty Loan, the general
investment bond market is almost at
a standstill. Such is also the case in
the matter of new corporate financ-
ing. Everything of a private char
acter has been halted while the gov
errments huge bit of war financing
is given the right Of way. The
working organizations of all the in
vestment houses in the country have
been given over to helping the
Treasury sell it's bonds, SO that very
little attention is being devoted to
the outside investment market.
There is every reason to look for a
successful fotation of the loan, al
though it is we'll not to be overcon-
hdent, for the task is the most diff
tlcult that has yet confronted us.
The success Of the operation-and it
raust acknowledgements entirely
upon the cooperation and concentra-
ton Of the efforts of all citizens.
Conditions in the money market
Rave undergone practically no i'm
pOrtant change. Rates were main
tanned around 6 per cent last week
Tor both call and time loans, with a
moderate volume of activity. The
bankers money committee placed
some money in the call market.
Whether there will be any immedi-
ate easing in the general money
market situation between now and
the end of the Liberty Loan cam
paign remains to be seen So far, at
least, nothing has occurred to add to
the available supply of credit, and
the seasonal demands are unusually
heavy, owing to the rapidity with
which the American farmer is NOV.
ing his crops to market. The situa-
ton in the money market is dis
cussed as follows in the monthly re-
view of the Mechanics and Metals
National Bank, of which Gates w.
McGarrah, chairman of the bankers
money committee, is president:
Evidence continues to increase
that credit conservation will be more