The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-08
FINANCIAL NEWS
AND COMMENT
Accumulation of Orders Sends
Prices Higher, but Much
Gain Is Lost
LIQUIDATION NOT HEAVY
ALI Industrials and Specialties
Advance, While Recent
Fayorites Soar.
LIQUIDATION NOT HEAVY

| Tho stock market began yesterday
( about where II left or last Thursday.
with O largo accumulation Of buying or
ders and for tho first four hours trad
ing proceeded at as furious q pace MS
has been witnessed on tho Stock E0-
change this year. In the afternoon,
however, the money market again re-
versed itself and despite the absorptive
capacity OF the market and the en-
thusiasm which marked the buying all
the way up, most stocks lost good part
OF their earlier gains, some Of them
closing the day with fractional do
clines. Such issues were exceptions for,
so far as could be determined. there was
ne very important liquidation. But
nevertheless the advance of prices Of
the last few sessions had resulted in
such a large accumulation Of profits in
the standard stocks, that. once the Down
ward movement had gained Roadway, II
was not TO be checked without some
progress. The result Of this, of course
was a rather weak closing. Yet not
withstanding this. the market held its
ground as we'll as could be expected
under the circumstances and some issues
actually finished with substantial gains.
The fact that the market SOLD Off in
the afternoon was somewhat of q sur
prise in some quarters, but not to ex-
| perienced observers, who have main
tanned all along that the pace was too
fast and who likewise took into account
the unfavorable showing made last Sat-
urday by the bank statement This
statement was. while not of any great
significance so far as the long distance
view Is concerned, showed distinctly
that the banks have not yet recovered
from the effect of the July dividend
payments and at the same time made
1t apparent that the professional ole
,ment would take advantage Of tho frst
opportunity to bring about a reaction
There were several other considerations
such as the coming crop report and the
monthly tonnage statement of the Steel
Corporation. which Is expected to be the
first to show an increase in unified Or
derS since the armistico was signed all
OF which arc due this week, that might
have been expected to have a favor
able influence on the market or the ef-
feet, at least, Of checking the selling
movement However all Of these con-
being and the only thing that counted
for the rise was the rates for call money.
The reason that this WAS given SO much
attention undoubtedly was on account
of the further warning against specula-
ton issued last week by the Federal
Reserve Board
The early advance was accompanied
by good deal OF excitement There
were some issues such as Stutz Motor,
in which the rise went as much as 20
points Steel common made a new high
record for the year. All OF the indus
trials, steels and specialties gained pro-
portionately. Crucible, Baldwin, and in
fact all other issues which were in favor
last week roso again buoyantly from the
opening, and there was more than the
usual amount OF attention manifested
in the rails under tho leadership Of
Reading and some Of the lower priced
issues But with the rise In call money
in the afternoon and with the change in
the character OF tho market the whole
list turned weak at the closing. There
were few issues which held relatively
we'll, such as the coppers and others,
which figured prominently in the days
news. but in the main the general mar
ket lost considerably In the final period.
This was especially true of Crucible,
Baldwin. Studebaker. Stutz and others
which have experienced moro than the
usual amount OF attention at tho hands
of speculative Wall Street OF late.
The highest rate for money during the
day was Is per cent. which rate was
made Just before the closing. Bankers
do not believe that any further trouble
will be experienced In this direction once
the situation is back to normal The
only question in their minds now is, Will
speculative Wall Street give the money
market a chance to get back to normal
before resuming the upward movement?
That yesterdays rate was not justifed
by the actual money situation was Of
course, obvious on the surface of things,
but at the Same time It was not an at
tempt to check speculation. Rather II
was an attempt to get the money market
back TO normal. Tho foreign exchange
market was weak again Sterling
dropped to within a fraction of the low
record made in 1918, while francs, lire,
pesetas and most neutrals showed frac-
tonl declines from last Saturdays
closing. Cotton experienced another
sharp advance during tho first part of
the session, but reacted at the closing.