The sun., 1918-08-31
FINANCIAL NEWS
| AND COMMENT
Bankers Warning Against I'm
due Speculation Has Good
Effect on Wall Street.
TRADING rs RESTRICTED
Business Was Of Pre-H0liday
Character and Price Fluc-
tuations Were Slight.

Overnight consideration of the money
committees warning against undue spec.
ulation convinced traders that II had
not harmed market values. but on the
contrary would tend to better the rela.
tons of the Stock Exchange to the Gov
eminent, the banks and the public
There was prompt acquiescence in the
views expressed by the chairman of the
money committee. which represented the
unanimous opinion OF New York's bank.
ers. and the volume of trading was re-
stricted to slightly more than 100000
shares. against more than $40. 1000 share.
on Thursday. The business assumed q
pre-holiday character and the fiuctua-
lions in general were fractional. The
range between the high and low fol
United States Steel common was exactly
1 point. the stock showing a net loss fol-
the day Of Il. outside OF General
Motors. which declined 2 points, the
losses in the active list were confined &c
fractioffs On the other hand. low priced
rails, Marine preferred and Booth Fish
cries advanced a point or more. Alto.
gether re market lacked Significance
althous@ the underlying tone and the
closing ssere firm.
In view of the curb on speculation and
the tight money conditions the inactivity
yesterday caused no surprise. The wal
news was highly favorable. but was no,
factor except in the sense that It mini.
mixed any selling pressure that might
have been caused by bearish develop.
ments. Railroad interests learned yes
terday that at a conference In Washing.
ton on Thursday arrangements were
completed for the publication of the con,
summated railway rental contract early
next week. and in the belief that the
contract would be more favorable thar
has been generally anticipated low priced
rails were in good demand. St. Pau
common making a net gain of IL ant
the preferred of y. Southern Railway
and Southern Pacific each gained frac'
tonally.
While speculative trading in stocks
will receive no benefit from the large
sums available for reinvestment mex,
week. investors should note that divi-
dends, interest and maturity disburse.
ments on Tuesday are estimated al
$3.50. 100000. most OF which will seek
fresh investment. That the Govern
ments needs are constantly increasing
was shown by the disbursement on
Thursday for war purposes of $780,
100000, the largest single days paymen,
thus far reported. There was no supply
of time money for new loans or for
renewals and call money quotations con-
tinued unchanged. The money committee
was aided In making an adequate supply
of call money by the Morgan FIRMS de-
post of $50. 900 yesterday in advance
of the payment on Tuesday Of S1s2.7SS.-
900 British Government notes. A like
amount will be deposited to-day and the
balance on September 3. The Treasury
Department on Thursday extended u
credit Of $40o.000.0O to Great Britain
and it is assumed that the funds for
these notes are being received from this
credit. 1t must be stressed. however,
that none of the funds available for in
vestment can be used to expand specula-
tive commitments.
While pesetas declined about rs points,
the feature in foreign exchange was the
rise in francs to 5.45 to the dollar for
cables and SAG for checks This is the
best price since June 90. 1915. In April.
1916, the low point of 6.osh was
reached. In connection with the ad.
vance in francs and the decline in neil
trails an international banker was quoted
as saying these movements were not due
to the favorable war news but to the
efforts of the Treasury Department to
work exchanges back to the pre-war
levels. The trade reviews comment
upon the light supplies and declare that
all round business activity would prevail
were it not for the imperative needs of
war. As matters stand conservatism
dominates all business procedure. The
Union Pacific annual report will be
published next Tuesday at noon.