The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-17
FINANCIAL NEWS
AND COMMENT
Profit Taking Causes Reaction
Following Early Advance
in Prices.
SPECIALTIES HOLD WELL
Selling Pressure in Final Hour
Affects Stocks Showing
Most Recent Gain.
,PECIALTIES HOLD WELL

FROM the viewpoint Of speculative ex-
perience the record Of yesterdays stock
market was not at all surprising. Some
thing usually happens as a sequel to such
an excited bulllsh absorption of stocks
as has gone on recently to clear away
the unsafe superstructure that has been
so enthusiastically erected. In SO far as
yesterdays market was concerned, the
principal reason for the reaction after
the further excited advances of stocks at
the outset was the rapidity with which
prices were rushed forward during the
first hour. This was entirely too fast to
be maintained for any length of time
and the setback brought no surprise TO
experienced observers who all along
have expected something more in the
way of a reaction than has already oc-
CURED. The indications were clearly
That the market has been, temporarily at
least not only bought but overbought,
and there was considerable qualification
In commission house circles that such a
movement should make itself manifest
in order to give Wall Street an opportu-
nifty to catch its breath.
There were no indications as TO how
Tar this movement may be carried, but
there was considerable selling in the
final hour. more selling in fact than APP
peared on the surface of things. This
selling was In the nature OF profit taking
and in no sense involved any change in
the general viewpoint of those who have
been absorbing stocks. 1t goes without
saying that the selling was not accom-
plished without considerable amount
OF professional pressure. but this was to
Do expected In the natural course of
things. In SO far as the general market
was concerned. there was absolutely no
change. Commission houses continued
to report a large inquiry for stocks from
outside sources. as we'll as a sharp dis
elimination for issues in which there are
already signs Of revival of business on
a large scale. This accounted for much
OF the rise in the first hour in the specu-
latlve specialties, and also accounted for
the fact that most of the standard shares
and coppers were neglected. In this re-
spect IL was noticeable in financial quar-
tiers that there was not nearly SO much
confusion over the reason for the con-
tinued enthusiasm for the specialties. II
Is becoming clearer each day that the
same thing IS happening which took
place in the early part of the war, name
ly. that Wall Street is picking out issues
in which there are real reasons for
higher prices.
The principal part OF yesterdays SELL
Ing was in stocks which have advanced
most recently. These were the higher
priced specialtes. including the oils,
food stocks and motors, all Of which have
experienced their full share of the recent
activity. They held we'll In face OF the
pressure. the reaction going only to the
extent OF about a point in exceptional
cases. The steels were somewhat of ex-
ceptions also to the general rule, in
asmuch as the weakness in the rest of
he tet
opportunity to put out short lines in
anticipation of an unfavorable statement
and dividend action later in the month
There was also considerable selling OF
the coppers and rails. which was rather
disappointing to the traders, particularly
In case OF the rails. The strength OF
Southern Pacific on Tuesday had given
them the idea that there might be an at
tempt to shift interest to this department
in order to facilitate the readjustment
in the specialties, but no such things
actually occurred. Instead of this there
were indications of gradual liquidation
in these issues on behalf of important
holders.
The money situation was easier. One
reason for this is the optimism con-
corning the floating of the next loan
There has been a complete reyulsion OF
feeling concerning this since the terms
were announced and bankers are not
inclined to believe that the financing
of the loan is likely to bring about any
thing more than temporary shortage
of funds. The exchange market was ir-
regular for the best part OF the day
without, however, any very significant
movements one way or the other.
Sterling was slightly lower and so were
francs. The bond market continued to
reflect the optimism over the Liberty
Loan terms