The sun., 1919-01-17
FINANCIAL NEWS
AND COMMENT
Industrial Shares Are Firmer,
While Pressure Continues
in Rails.
BUSINESS MORE ACTIVE
Profit Taking Outs Down the
Advances During the
Final Period.
BUSINESS MORE ACTIVE

Apparently in its process OF making
r. selection OF the good and bad symp-
toms Of the present financial situation
the stock market yesterday decided to
| follow more optimistio leanings. There
| was no change in the news and the
share list still presented an irregular
aspect in that the railroad issues were
disposed to be heavy. But the improve
ment which has been under way in the
| industrial department continued and,
| although there was some disposition in
the last hour to take profits in stocks
that the recent bulge made too profit
able to carry any longer. the main de-
velopments OF the day again constituted
| an expression Of confidence in the I'M
DERIVING market situation. The deal
| ings. which have been on an expanding
scale, expanded somewhat further and
while business was still professional
trading in some directions seemed to
! include something more than mere short
covering.
The fact that traders were able TO
! make considerable impression against
! the railroad shares was ono OF the I'M
favorable featAres about tho days busi-
ness. Except for tho fact that the con-
| fused state of AFFAIRS in connection with
| the railroad outlook Is well known, Il
might have been supposed that the mar
ket would have rallied somewhat in
those descriptions on the announce
ment that Congress, HAD been asked to
appropriate Sb0o.ooo.0o to carry out
the proposed plan of improvements ANY
| impression which this might have had
in the way of bringing about an In
provement IN values. however. was or
| set further by the attitude Of the rail-
| road executives themselves toward the
| improvement programme and by the
failure OF Congress TO proceed faster
| with its investigation into the proposed
railroad legislation. On the other hand
| there was a more optimistic feeling in
| evidence toward the steel situation The
| Improvement which was reported in the
weekly trade publications in regard to
| export business carried the suggestion
! that the steel situation was on the
mend. Although no change was re-
| ported In the deadlock which exists with
respect to the domestic outlook II was
! at least encouraging to know that the
| demand for export trade was improv-
| ing.
! Explanations for a greater part of the
activity in the specialties continued to
! be found In the operations OF pools and
| cliques. All OF the specialties went
| higher In the forenoon along with the
| standard industrials and steels, whose
frmness was a gratifying feature OF the
day. Toward the closing profit takin 3
/ developed in the oils. including in par
| ticular Mexican Petroleum but the gen.
! eral market. that is to say with the ex-
cept!on of the rails, held up fairly we'll
under the circumstances. Marine pre-
/ ferred was a strong spot throughout the
day. and Bethlehem Il rallied after fur
| Their weakness at the outset The buy
ing In the steel shares continued to
carry the suggestion OF something like
/ accumulation. while the selling of the
| rails appeared TO be mainly professional
| based upon the temporarily unfavor able
| impression created by developments in
| Washington and the definite statement
| that the railroads are taking a stand
against the proposed equipment pro-
| gramme. This was responsible also for
a certain amount OF selling among the
equipment shares The heaviest spot in
the railroad list was Southern Pacific,
which dropped under par.
| There was no change again in the
money situation. Francs were weak in
the foreign exchange market, but neu-
trails were generally steady. In the boNd
department considerable buying OF the
First and Second Liberty A. took place
| in anticipation OF the reopening OF the
| conversion privilege, as proposed in
Washington recently. There was fur
Their discussion in banking circles of
some new foreign financing which Is un-
derstood to he in the process OF ncgo-
tiation. While nothing definite has
been announced. It Is understood that
the nation involved Is Great Britain,
and that at least part OF the issue will
be to refund the loan which falls due on
February ! next.