The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-26
FINANCIAL NEWS
AND COMMENT
Stock Dealings Contracted on
Hint From the Money
Committee.
PRICES IN NARROW RANGE
Bankers Letter Fails to Re-
veal Alarm Over Possible
Effects on Market.
PRICES IN NARROW RANGE

Although dealings in stocks yester-
day showed a contraction in the agsre-
gate OF some 400, 900 shares from the
average OF recent volumes. as might
reasonably have been expected in view
Of the money committees statement at
the close Of business on Thursday. the
shrinkage was not accompanied by any
wide movement in prices. On the con-
trary. prices travelled over a compare
lively narrow range as contrasted with
Immediately preceding days but their
direction was generally the reverse OF
that which they have been pursuing.
The fall OF prices was orderly. and from
q technical viewpoint the market merely
saGged as a result of some miscellaneous
liquidations involved in the readjustment
OF the markets inside position to the
committees suggestion. Taken ss q
whole tho days features constituted an
expression of confidence In tho undcrly-
ing situation, an expression obviously
tempered. however. by conservative re-
gard for present uncertainties.
Second consideration OF the commit
tees statement failed to reveal any
widespread alarm over the possible eff
fects OF the new restrictions marketwise
~ sho wilma II was Oh tldt
the committees statement was unusu-
ally mild under the circumstances. and
In view Of the fact that Wall Street has
been given a week to put its specula-
tive house in order the whole matter
turned out with far less drastic results
than had been expected. That there will
DO some difficulty in adjusting the situa-
ton to the committees demands in the
case Of the small Spectator is to be
expected. but on the whole the request
for larger loan margins will involve far
less hardship than IVES the case when
the committee issued its previous state
ment, calling for a daily account Of
brokers' loans. As matter of fact a
larger percentage of commission houses
have already complied in a general way
with the committees request in that
they have been demanding margins Of
approximately 30 per cent. from their
customers. At least II Is figured that
those houses which have failed to do
this are in the minority. and that their
action In connection with the matter
will not be felt to any great extent.
With the financial community alb
sorbed In the discussion Of the new
money regulations, II was not surprising
that considerations of the character OF
the Steel quarterly meeting, as we'll az
little reflection marketwise. As It was.
however, there were a few strong spots
In the list notably in the industrial spe-
cialties and oil shares Despite the rise
which Mexican Petroleum has expert
enced OF late, this stock was strong
throughout yesterdays, session. There
were one or two fairly strong shares
among the coppers and motors, but else
where the market was weak. although
holding its own as we'll as could be ex-
pected under the circumstances. Steel
went OF little more than a point. and
there were substantial declines in Bald
win. Lackawanna Steel. Atlantic Gulf.
and few others. but in the case Of a
majority OF shares losses were confined
to substantial fractions.
Money rates were not affected In the
least by the committees ruling Nor
was the situation as to the supply OF
funds. In fact, It may have been sig
nificant that the supply OF money on the
floor OF the Stock Exchange yesterday
was larger than at any other time for
the past two weeks. At one time II was
reported that an aggregate volume of
funds awaiting to be loaned totaled s25.-
100000 and that a substantial portion of
this came from out-of-town institutions.
The foreign exchange market was quiet.
The reports of peace proposals by Aus
tria-Hungary and by Turkey had the eff
feet of softening rates on Holland.
Switzerland and Spain.