The sun., 1918-08-21
FINANCIAL NEWS
AND COMMENT
Absence Of Selling Pressure
r Accepted Reason for Mar
ket Strength.
MONEY STILL STRINGENT
Canadian Pacific and General
Motors Chief Features in
the Advance.

On limited volume of business stocks
yesterday registered tone Of strength
that could be accounted for only by
lack Of selling pressure. In most cases
the opening prices were the low for the
day. and net gains In the active Inst
Under present conditions holders seem
to see no reason to let 80 of stocks On
the contrary there Is a constant yet
small absorption for investment, a de-
mand that makes for small but con-
esistcnt advances in active Issues. In
such a market the bears are loath to
conduct he active operations that would
prevail ordinarily in time of restricted
credit and Withdrawals of United States
deposits. The only effect Of stringent
money apparently has been to limit the
total number of sales to 100000 shares
in round numbers. The pool in the face
OF heavy Government Withdrawals loaned
more than $15,000,0 900 on call yesterday.
but there was no increase in rates. The
resolution adopted by the Clearing House
committee approving the credit restric-
tons put In force by the Federal Reserve
Board further strengthened the policy Of
New York banks to place Government
and war needs ahead OF everything else
AS a result there was no supply OF new
time money available yesterday and caf1
money was doled out only to a minimum
extent
The most encouraging feature in the
news developments Is the constant i'm
provement of the military situation, the
Allies showing daily a frmer grasp OF
the initiative and small but strategically
important successes. The tax uncertainty
Is becoming less important, In view OF
the reliance upon a square deal from the
Secretary Of the Treasury. and the rail-
road rental contract Is approaching COM
pletion. Nevertheless the market con-
tinues dull. narrow and professional.
with activity In Liberty bond issues the
most important feature. The 3hs, at
lola. scored new high record for all
time yesterday. and as the supply of
other tax exempt issues dwindles. the de-
mand for these tax exempt issues grows
General Motors despite its lack Of Stock
Exchange clearing house facilities, scored
rise of Az points and a net gain OF
2A points on short covering, and Cana
dian Pacific rose to 1924, compared to a
low this year OF 1875. with a net gain of
"a points for the day, on reports of In
NestInent puyins from Foreign sources.
American Telephone gained lk points
on the steps taken toward property uni
fication. but the general advances in the
active list were confined to fractions.
Time money rates were nominal and
call money loaned throughout at s per
cent. on mixed collateral and 81, per
cent. on all industrial. The feature OF
the foreign exchange market was the
early advance OF So points in pesetas
with net gain of 80 points. and weak
ness In sterling and francs. with a de-
cline of IA centimes in the exchange
on Paris. Other neutrals were also
easier. Not only was the news from our
own harvest country more favorable
than had been expected. but Broomhall's
review Of the European CROP outlook in
dicated that England will have the big
sest grain crop in fifty years, and that
results in France and Italy will be rela-
lively favorable.