The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-06
FINANCIAL NEWS
AND COMMENT
Market Shows Cheerful Spirit
in Spite Of Unfavorable
News Reports.
LIST STRONGER AT CLOSE
Buying Of Steel Continues and
Rails Are Disposed to
Be Stable.
LIST STRONGER AT CLOSE

The real feature OF yesterdays stock
market was its very considerable power
of resistance to the undoubtedly unfavor-
able news OF the day. 1t was another
quiet day, with persistent weakness In
some directions. but In the main the
session continued to exhibit the same
characteristics OF underlying firmness
which have been manifested for several
days. accompanied by indications OF az
gressive rising tendencies. The dealings
were on an unchanged scale of moderate
activity. and although palpably profess
sional for the most part seemed to in
clude something more than mere short
covering operations growing out OF the
recent speculation in anticipation OF a
further readjustment OF prices Spe-
cialtles still provided the principal Tea
lures, but none of the tokens OF tho
market were prejudicial to the theory
that railroad shares and other more or
less standard issues have been under
going a process OF accumulation. The
list was at no time weak and strength
predominated at the close.
The only really important exception 20
the general rule were the coppers, which
exhibited a heavy tone from the outset.
The immediate incentive here was the
statement which came from Washington
the night before concerning the future
OF the copper industry and the announce
ment OF the reduction In the dividend OF
American Smelling and Refining. The
latter probably provided the most i'm
portant influence during the trading. for
It served to emphasize tho Importance
of the situation. although In reality the
statement itself contained nothing that
Wall Street has not known all along.
The reduction Of the Shelters dividend.
H. had
been expected that the dividend would
be cut sooner or later. but the general
idea seemed to be that the company
would continue the payment at least one
more quarter before considering a reduc-
ton to a per cent. basis. The fact
that 1t came yesterday seemed TO give
the impression that the copper industry
was really worse off than was generally
realized, but close examination OF the
figures revealed in Washington disclosed
nothing Of importance that had not been
discussed previously.
Nevertheless It provided an important
test for the market which emerged
with no little credit. Good buying con-
tinued in evidence in the steel shares,
while the rails were disposed to exhibit
a fair degree Of stability. making some
slight progress in the case of the more
important Issues. Pool operations were
apparent again in the tobaccos. with
the exception OF American Sumatra, and
there was evidence OF life among some
OF the lower priced food stocks for the
first time this week. on the other hand
American Smelling and Refining was
distinctly weak feature. selling off more
than 5 points following the announce
ment OF the reduction Of the dividend.
This weakness was naturally reflected
TO some extent among the other cop
rers. although nowhere. except in Utah.
were the declines very significant. The
fact OF the matter Is that nearly all Of
the losses in this department were con-
fined to substantial fractions. This did
not mean, however. that the market has
finished discounting the readjustment in
the copper industry On the contrary II
merely reflected the professional char
acter Of the trading.
There was no apparent change in the
money situation. Call funds continued
in good supply, and go far as could be
determined there was likewise an album
dant supply of time money available for
speculative purposes The demand.
however. was not keen. nor Ia It ex-
pected TO be 80 long as the market con-
ti.iues to move along the narrow range
which 1t has been pursuing Of late. The
foreign exchange market was finn and
rates were not greatly changed from the
preceding days closing. Weakness con-
tinued in Government Issues in the bond
department. which otherwise was Arm.
particularly with respect TO the foreign
Government securities.