The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-14
FINANCIAL NEWS \
AND COMMENT
REIMBURSEMENT Liquidation to
Conform to Money Restric-
ton About Completed.
SEVERE SELLING NOTED
Most Of Pressure Again Con.
fined to Specialties and In
dividual Issues.

While in Wall Street there is a view
to which underlying speculative condi-
! tions lend themselves. that about the
worst OF the liquidation occasioned by
the readjustment of the market to con-
/ form with the new money restrictions
has been completed. yesterdays stock
| market, as on Wednesday. continued to
be characterized by severe selling In GER
! tain departments. The greater part of
| the pressure was again confined to the
! speclalties and individual issues with
! which pools have been more or less iden-
titled of late, but there was still some
disturbance OF the standard issues. These
shares, however. acted considerably bet
ter than they have at any other time
| since the movement began. recovering
substantial parts Of their earlier losses
along with the specialtIes toward the
closing. But despite the encouraging
sentiment that prevailed in consequence
Of the gratifying results achieved in the
no such recovery at any period as might
have been expected had there been no
restriction as to the amount OF money
which Wall street could use to such pur-
poses.
The days market demonstrated, In
short. what can be expected from securi-
ties on future occasions when they are
confronted with such good news as yes
terday's. II indeed 1t was the money
committees idea to prevent any response
whatsoever in the securities market to
war news of the character of yesterdays
1t has succeeded in its endeavor. There
is little question as to what would have
happened under ordinary circumstances
on the announcement that American
forces, operating almost entirely by
themselves, had succeeded in practically
closing up an important salient. but with
| the continued calling of loans on the part
of important banks, and the open dis
coura cement of market operations in
other directions. speculative Wall Street
was without other choice than to follow
the course which has characterized busi-
ness for the last week or more. That
such selling cannot continue for long.
however, is OF course admitted. But, on
the other hand, 1t Is equally true that the
market cannot make any material prog
ress upward so long as the present re-
strictions continue, unless through in
vestment purchases.
SO far as the general outlook was con-
cerned, 1t appeared as though the market
was gradually drifting into precisely
| such a position that is to say. a posi-
ton where it will be held practically
deadlocked until the next Liberty Loan
campaign has been completed or longer.
This was particularly evident In the last
few minutes of the session. when selling
pressure ceased in certain directions and
the market lapsed into a state OF semi
dulness similar to that which charac-
terized the market for so long a period
prior to the sudden outburst Of enthu-
siasm which followed the launching Of
the first British attacks in the Picardy
sector early last month. There were
quite extensive declines in the early
trading in Suma:ra, Industrial Alcohol.
Mexican Petroleum. Marine preferred
and Tobacco Products, in the specialties.
and New Haven and ST. Paul in the
rails. but they recovered substantial
parts OF their early declines. then turned
dull with the rest OF the list at the close
Elsewhere there was little of great in
terest, Excitement which marked busl-
ness in Liberty Bonds subsidized and
trading assumed normal proportions.
The only interest in connection with
the money market was in the offering OF
another block OF certificates of indebt-
edness. There was no change in rates
The foreign exchange market was again
featured by further recovery OF neu-
trail rates Scandinavian rates were
considerably higher pesetas gained
fractionally and so did guilders. This
was regarded-as only natural sequence
after the first and enthusiastic response
which followed the allied victories.