The sun., 1918-09-12
FINANCIAL NEWS
AND COMMENT
Substantial All Around De-
clines Noted I'm Stock
Market Trading.
LIBERTY BONDS ACTIVE
Advance Following McAdoo's
Plan to Obtain Tax Exemp-
ton for Them.
LIBERTY BONDS ACTIVE

Substantial all around declines in the
stock market yesterday continued tho
downward movement which has been
under progress since tho money commit
tee Issued its statement last week. There
was q period OF comparative steadinees
at the outset and for an hour or 50
afterward. during which a good part
Of the financial community's attention
was absorbed In the trading In Liberty
bonds and tho attempt being made ia
washington to secure more generous e.
emption from the surtaxes for all classes
Of Government bonds, except the FIRST is
sue. Thereafter, however. selling of the
sams character that made its appear
ance Immediately following tho an
nouncement Of the money ruling last
Friday was resumed: but whereas pre-
vtously most Of the liquidation centred
chiefly In the standard issues, yester-
days selling was confined almost en-
trely TO the specialties OF the type of
American Sumatra, uistillers. Indus
trial Alcohol and General Motors. This
was not accomplished without some dis
turbanoe in the standard list, but con-
trasted with other departments, this
group gave = relatively good account
Of itself under tho circumstances.
As matter Of fact. there was every
indication yesterday that about all of
the real selling that has been oocas!oned
by the read1ustment to tho new money
situation In the standard issues has been
accomplished. Whether or not this view
Is correct. the selling which Character
ICED the specialties In the late afternoon
mad strong semblance Of professional
pressure, Undoubtedly a small part Of II
represented real liquidation. but with the
oisappointment over the discovery that
the Treasury Departments attempt to
60
ment bonds might not be as beneficial
as hrst anticipated. and tho continued
calling OF loans, II looked as II bear
ishly inclined traders had again taken
advantage OF the money committees ap-
parent invitation to sell the market
With respect to the tax exemption for
Liberty bonds. the action OF the market
showed distinctly that Wall Street at
nrst glance had somewhat oyeryalued
the new proposal There was a sham
Improvement in these issues at the out
set, during which the second Is jumped
moro than 3 points. but as soon as II
was realized that the exemption would
Dc OF comparatively little value to those
with incomes under 100000 ali Of
them reacted considerably, retaining.
however, substantial parts Of their early
gains. -'
So far as tho stock list was concerned
"ciS diHOot entlrely con-
fined to the speclalties. Steel ana n
number Of other standard issues moved
orr In sympathy with the trend in that
group. but comparison Of the volume
or business In the two groups demon
strated clearly enough that the pressure
IN these shares was Of small propor-
lions. On the other hand there was a
generous supply OF Industrial Alcohol
and Distillers through the late after
noon. Selling nevertheless spread to a
number OF other individual shares and
a rev OF the rails particularly New
Haven and st. Paul, which have been
under accumulation recently, and both
issues declined accordingly. A rather
curious feature OF the market was the
strength In the various copper issues.
These particular issues have been strong
throughout the recent movement. the
explanation being that recent specuIa-
ton IN them has not been Of SUFFICIENT
size TO warrant as thorough a readjust-
ment as that which has taken place in
other groups
There was no special change in the
money situation. Call rates continued
to b quoted at from 6 to 6A per cent.
and time money remained at nominal
fgures, there being no supply Of either
class available. The foreign excha nRe
market was without particular change.
Swiss francs were points higher. but
as general rule other rates were
easier. Scandinavian exchanges receded
10 to 40 points; pesetas were down 10
points, and guilders gave way about a
quarter of cent In continuation of the
which began with tho first
Of the allied victories.