The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-05
FINANCIAL NEWS.
AND COMMENT
Peace Stocks Move Higher In
Wall Street, but War
Issues Decline.
GENERAL TONE STRONG
Bond Department Reflects En-
thusiasm Over War
Developments.
GENERAL TONE STRONG

vorites, including a number Of war stocks,
were carried downward yesterday In
continuation Of the movement which has
boon under way lately, and gave the mar
ket an appearance of irresuiarity. But
aside from these issues the tone was
strong. and II was evident that II It
had not been for the money situa-
ton the response to the enthusiastic
news developments over Sunday would
have been entirely differently However.
the rails were disposed to be strong
throughout the day and the peace spe-
ciaities were carried to higher levels,
But the war order industrisls continued
heavy. although exhibiting in the main q
fair degree OF stability under the cir
cumstances. Dealings. while consider
ably in excess Of the average sessions OF
month ago. were contracted from
recent volumes, the decrease being ac-
centusted by the indisposition Of traders
to enter into new commitments unui
after election.
The fact that the old line investment
rails showed strength. however. was one
OF the most encouraging instances In the
days business and tended to give the
market tone Of quality which has not
enjoyed lately. These Issues have not
been In particular favor with the specu-
lative element since the wild surge or
public interest In war order shares at the
outbreak of the war. And since they
have always been the main sources or
investment In the local financial markets,
their strength was gratifying to the
4 nj and Intelligent
market observers who have believed that
with the event OF peace these issues would
come in for more serious consideration
than has been given them recently. The
reason for the turn Of strength here lay
primarily in the news developments over
Sunday, with the surrender OF Austria
Wall street figured that the war was as
good as over, and that even IL Germany
decided to hold off for time before &C
cepting the Allies terms It was only
question of perhaps few months before
she would be forced to accept the fun
demands Of the associated nations. AT
least this was the Wall Street viewpoint.
So far as activity and striking price
movements were concerned there was
more real reflection of the enthusiastic
news in the bond department than there
was in the stock list. Even the London
| market, which has been on virtual cash
basis since its reopening. appeared to be
more sensitive to the news than the
local Stock Exchange. Nevertheless, II
could not be said that these considera.
tons we're altogether disregarded. All
| of the peace issues were higher and
Southern Pacific. Reading. Union Pacific
| Great Northern preferred, IN fact all OF
the old standard investment issues. i'm
| proved as much rs could be expected
! under existing money conditions. VI
| the other hand, there was very little in
! terest in the movement OF war stocks
New York Air Brake, American Suma'
ira, Industrial Alcohol and few othel
issues OF the same type broke rather
\ sharply. Steel common, however, and
number of other shares known as war Is
sues fiuctuated within a relatively mar
row range. irregularly. but in the MAR
holding fairly we'll
There was as a matter OF fact more
Significance In the foreign exchange mar
ket, SO far as II reflected the trend o.
controlling events. than there was in tn
stock list. In this market sterling
showed signs OF breaking away from th'
level at which Il has been pegged for 50
long, and francs continued strong, while
all of the neutral rates displayed NOR
or less heaviness and some special anC
pronounced weakness. Indeed there wa!
a sharp break in Scandinavian rates
Spanish pesetas were at the lowest sine
l1s1s. Money fiuctuated between ant
l5ta per cent. there being a fair supply
although little demand. That none!
should be easier at this time Is due t
the lack OF demand rather than to TIL
supply, a condition resulting from tn
restrictions placed upon speculative op
erations by the money committee in II
letter to the president Of tho Stock Ex
change last week