The sun., 1919-09-21
FINANCIAL NEWS
AND COMMENT
Steels Give Way Under Pres
sure, Carrying Other Stocks
Down to Less Extent.
TOBACCOS ARE EXCEPTION
Bank Statement Discloses Re-
serve Deficit of $58,000,-
900 for Week.
TOBACCOs ARE EXCEPTION

The fact that prices declined on the
Stock Exchange again yesterday was
not duo so much to the prospect of n
nationwide tieup of the iron and steel
| industry tomorrow as Il was TO the
Interpretation which Wall Street placed
on the statements made out West by
President Wilson about the labor situa-
ton, and to the even more startling dis
closure in the morning papers that the
President had sent special envoy to
Judge Gary to induce him to recede from
his position on the strike question. This
| put the whole steel strike question in an
entirely new light before the financial
| community, and whereas IL had been led
to believe heretofore that II any pressure
was Drought to bear to settle the strike
| It would be on the labor leaders and not
| on the Steel Corporation, II became APP
parent yesterday that the financial COM
| nIunity might have to face a similar
situation to the one which existed in the
case of the railroad dispute in the early
part Of the war.
| The effect was Immediately apparent
on the Stock Exchange at the outset
yesterday. Whereas there had been very
little real selling of securities on Thurs
day and Friday, stocks were offered
readily yesterday in large volume. The
steel and other important financial in
| terests did not take seriously the sug-
gestion that the Federal Government
might force recognition of the union. but
the fact was not overlooked by the trad
\ ing community. The market having
been settled on the previous day, 1t
was comparatively easy yesterday. with
such news as came to the front over night,
| 60 11y or1 hay
one to as many as points. The ma
| jority of the financial interest still held
their belief that the steel strike is not as
| serious as II has been pictured, and there
| were many that welcomed the test of
| strength on the theory that 1t might
as we'll come now as at any other time,
but there were very few who still held
out hope OF a postponement OF the strike
| until after the big conference in Wash
tngton next month. After the news of
sending an envoy to the Steel Corpora
ton had become public 1t was realized
that the battle was as good as started.
Considering the news with which II
was confronted the market again held
its ground remarkably well. The ma
jority of stocks started weak. with the
selling confined, however, principally to
the steel stocks Steel common made
another new low record for the move
ment and Bethlehem B. Republic. Cru
chile and Lackawanna all lost proper
tionately. The rest of the market gave
way under the pressure in the steel
group, but not to the same extent as
did some of the steels. Toward the clos
ing an attempt to rally stocks wos
begun, but no buying came forward
other than that from the shorts and the
professionals who make IL a rule never to
carry stocks over a period of suspended
ANNA ton. There was still a number
of exceptions to the general rule. These
Included. just as has been the case all
along, the tobacco stocks and special
ties. American Tobacco, in response to
reports given out during the day as to
tho readjustment of capital, went to a
new high pecond for the year and
strength continued in Retail Stores and
the rest OF the group.
The bank statement disclosed a
| deficit In reserve Of $50, 900, 900 instead
| Of a large increase as every one had
been expecting. This was accounted for
| very largely by a loss of cash to the
Federal Reserve Bank Of more than
| $100,000,000. But, perhaps, the most sur
prising item of all was the large increase
| in loans On account Of the contraction
| in activity on the Stock Exchange II had
| been expected that the loan item would de-
| crease considerably, but whatever decrease
| there may have been in this connection
| apparently was heavily Offset by the in
| crease in loans on the part of corpora
| tons to pay the third instalment OF
| taxes last week and to the borrowings
| involved in the offerings of tax certifi-
| Gates during the week. The foreign ex-
change market again displayed weak
ness. Lire were particularly heavy
although sterling and francs lost ground
also. Marks, on the other hand, were
| slightly firmer.