The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-28
FINANCIAL NEWS
AND COMMENT
Stocks in Active List Show
Gains of From a Fraction to
More Than Two Points.
DECLINE IN RAIL SHARES
Stringent Money Market Re.
stricts Days Trading to
About 100000 Shares.

credit restrictions and money stringency
occurred yesterday in the Stock 'Ex-
change when stocks scored gains ranging
in the active list from fraction to moro
than two points. a few rails declining
fractionally over delay~in contamination
of the rail contract. The total volume
was approximately 400. 900 shares. but 1t
would have been much larger had there
been a supply OF money to finance the
business. or this total nearly 40 per
cent was represented by United States
Steel common. which advanced to new
high mark for the year ut 115N and
closed the day with a net gain of point.
While the banks restored to the Gov
eminent s75,000.000 approximately OF
United States deposits. the recourse to
the money pool was only moderate and
rates on call were held to per cent. on
mixed collateral and 81 per cent on all
industrials without difficulty. The banks
which lost the larger amounts of United
States deposits called loans to some ex-
tent, but the borrowers quickly found
other banks for fresh loans, and the
demands upon the money pool were con-
siderably less than had been anticipated
Nevertheless the money stringency Is
expected to continue throughout the
week, with additional Withdrawals to-
morrow, and an expanding volume OF
transactions Is not expected.
Tho feature of the present market
Is not so much a large demand for
stocks as an absence of selling pressure.
In consequence a moderate request Is
sufficient to mark prices upward. The
reluctance to dispose Of commitments at
present levels gives a strong undertone
to the market and the list closed firm.
There were further indications that the
increasing power of the Allies Is beating
back the enemy toward the Hindenburg
line, and in some places beyond 1t, and
the growing successes have brought
about a cheerful investment sentiment.
In fact, the Stock Exchange business is
more on the investment side than the
speculative. and the spectacle of an adj
vancing market in the face of conditions
that in ordinary times would bring In
more sellers than buyers can be ac-
counted for only by supreme confidence
in the results OF future war events. In
London, where fortnightly settlements
prevail and where money rates are half
those here. there has been large expan-
sion in speculation. but the authorities in
this country take the point of view that
while legitimate investment should be
encouraged a tight rein should be held
over speculation.
war developments was found in foreign
exchange, where francs advanced to
5.54 to the dollar In French city bonds,
which gained a point or thereabout, and
in Canadian Pacific. an internationally
held stock, which made a net gain of
I Il points, after advancing to 172 for n
rise Of 3Ts. Net gains of more than 2
points were made by Railway Steel
Spring, and Worthington Pump. be-
tween 1 and 2 points by steels, Ameri-
can Steel Foundires, Canadian Pacific
and Marine preferred. on news of a spe-
cial directors meeting after the close
of business. There was some profit
taking in the Hide and Leather issues.
which had advanced too rapidly and
which showed a net loss of / u points.
There was no supply of time money.
and the call money market was tight
affair. Outside OF the sensational rise
IN francs and the establishment of 6.35
as the official rate for lire compared
to ISL lire to the dollar on Monday.
there was little feature in foreign ex-
change. On May IS this year lire sold
as low as 9.15ia, but since the as
! sumption Of reserve bank control the
rate has been steadily advanced. The
statement of our exports for July
showed the largest outward movement
| for that month on record. The total
was S5Os,OO0,0 900, $4,000. 900 above
| the same month last year, and $63,300,-
| 900 above July. 1916.
The total. however, was somewhat
| below March and May of this year,
but S23. 100000 greater than in June.
| Imports were the smallest since Feb
| ruary. In July exports exceeded inn
ports by s267,000,000, and the export
| surplus for the seven months ended
July 81. of 1885. 100000 was surpassed
only by the corresponding period last
kyear and exceeded that Of two years ago
by about $3.50. 100000.