New-York tribune., 1918-09-09
Finance So Economics
WALL STREET OFFICE:
Mills Building, IS Wall st.

Wall Street was brought face to
face again last week with the bald
fact that there is no surplus of
banking credit available for specu-
lative operations III the stock mar
ket. Whereupon a rising market
based on the brilliant Allied sue
cesses in France came to halt and
for time thereafter prices declined
rather sharply
Early in the week the market be-
gan to move forward and there ap-
peared evidences of reviving specu-
lative interest. Apparently the effect
of the war news on sentiment was
stimulating activity, despite the ban
of the money committee, and Great
ing the buying power necessary to
lift prices to higher levels. But the
rise was shortlived, for on Friday
the Stock Exchange, acting at the
behest of the money committee,
served notice upon its members that
henceforth all houses would have to
furnish to the exchange authorities
complete list daily of outstanding
stock loan accounts. This action
was unexpected and promptly re-
suited in turning prices downward,
so that at the close of the week
practically all of the earlier gains
had been wiped out.
The latest action of the money
committee may be accepted as in
dicating conclusively that any fur
ther expansion in speculative &C
tivity based on borrowed money
will not be tolerated so long as the
government urgently requires funds
to finance the war. Loans will
therefore be scrutinized more care
fully than ever and no enlargement
of the present collateral stock loan
account, which is really small COM
pared with normal times, will be
permitted. And, of course, there
can be no important expansion in
speculative activity without an en-
largement of the loan account The
situation as it now presents itself
is one in which control of the money
market is most complete, and the
movement to withhold credit from
non essential uses, such as stock
speculation, is rapidly gaining
ground. The outlook apparently is,
therefore, for a continuance of
quiet trading market in which in
vestment buying will perhaps be-
come much more important factor.
Quiet prevailed in the market for
investment securities last week.
Prices were we'll maintained as
rule, but the volume of activity was
not large, judged from the stand
ards Of more normal markets. 1t
is highly improbable that any i'm
portant broadening of operations in
the investment market as a whole
can now be looked for until after
the campaign for the sale of the
fourth Liberty Loan is out of the
way. That begins at the close of
the current month, and already the
attention Of many leading interests
in the investment field is being given
over to the consideration Of plans
for helping to make the impending
Offering an unqualified success.
Meanwhile, there is good de-
mand for short term notes of high
interest return from investors, who
are attracted by the abnormally
high yields at current prices. New
offerings of corporate securities
have slackened, and we will proba-
bly, see very little important financ-
ing in the open market until after
the government loan has been sold.
After the campaign is over num-
ber of corporations are expected to
seek funds, including the American
Tobacco Company, which plans to
borrow 100000 on notes for
refunding purposes.
During the month of August
financing by railroad and industrial
corporations showed a marked fall
ing off, which can probably be at
tributed to the approaching loan