The sun., 1918-12-19
FINANCIAL NEWS
AND COMMENT
Uncertainty Of Railroad Situa-
ton Has Disturbing Eff
feet on Stocks.
MARKET IS STILL QUIET
General List, However, Con-
tinues to Display Fair De-
gree Of Stability.
MARKET Is STILL QUIET

Wall Streets waiting attitude was
! maintained yesterday In the stock mar
ket Events contributed nothing to the
formation OF definite conclusions respect
ing the financial situation, although II
may be reasonably supposed that the
disquieting state of affairs with respect
to the railroads was mainly responsible
for the lower Tango OF prices in this
department at the closing. However,
the general list OF securities still dis
played n fair degree of stability in spite
OF the pressure elsewhere. and there
were evidences of good buying in the 30
called specialties. But in all other re-
spects II was the same kind OF a market
Wall Street has been witnessing ever
since the money committee imposed it's
restrictions on speculative funds and
since the financial community began to
realize that the readjustment from a
war to a peace basis could not be &C
complished without a certain amount Of
unsettlement to the nations business.
But there were several other very good
reasons yesterday for the unsettement
In addition to those which have been
chiefly responsible for the uncertain
course of the securities market Of late.
And not the least disturbing of these
was the growing conviction that unless
there is some change of attitude shortly
on the, part OF those in charge of rail-
road affairs in Washington the country
Is likely to witness the return of the
roads to private control soon after the
turn OF the new year. An indication Of
what this would mean was seen in yes
terday's market in the weakness of such
stocks as st. Paul, New Haven, Southern.
Missouri Pacific, Rock Island. the Fries
and securities OF other roads whose
financial positions are not particularly
inviting to n return of the roads at this
time. Conservative interests still believe
that some way will be found TO avoid
this course and that eventually the
whole matter will be solved in a way
satisfactory to both the railway admin
istration and to securities holders. But
the reticence of officials as to what is
likely to happen is having a disturbing
effect on the market. and 1t would seem
to be high time that an official state
ment is forthcoming that would tend to
lift the uncertainty,
In the absence. however Of any, such
statement yesterday the whole railroad
department was disposed to be weak.
Losses were not as large in the case of
the stronger roads. whose financial posi-
lions are more satisfactory, but they
presented an aspect of hesviness never
theless The steel group was fraction
ally lower The striking thing here, how
ever, was that the main pressure seemed
to be directed against the Independent
concerns which have no large ore re-
serve to draw upon. The fractions were
weak and in the afternoon entered into
fresh stage of decline in sympathy
with the railroad shares. Brooklyn
Rapid Transit was especially weak. No
particular attention was paid to the Fed
eral Reserve Boards statement with re-
spect TO loans. 1t is becoming so well
understood in Wall Street that there is
to be no change in the restrictions on
the stock market until after the next
loan is out OF the way that these reports
and reiterations are having no effect
whatever on the securities market
However in connection with the money
situation an interesting development
camc to light yesterday. That was that
the majority of members OF the money
committee themselves favor removal of
the present restrictions. Their views are
not in accord with those held in Wash
ington, and 1t is assumed that until
there Is some change there there
will be no change in the situation.
Money continued easy yesterday, loaning
at to 4l2 per cent practically all day
despite the fact that the third install
ment on the Liberty Loan Is payable
to-day. The transaction, so far as New
York il concerned, will involve very little
hardship on the part of the banks as
virtually all the money due on the last
loan in this district has already been
paid. In the whole country approx
mately $1,000, 900. 900 is still to be paid.
The foreign exchange market was quiet.
and aside from neutrals, which were
strong, the market was about unchanged
from the preceding days fnal