The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-30
FINANCIAL NEWS
AND COMMENT
Stocks Are Unsettled, Due to
Sudden Advance in Rates
for Money.
MARKET IS STILL ACTIVE
Late Rally Does Not Continue,
but 100000 Shares Are
Traded During Day.
MARKET IS STILL ACTIVE

II was not so much the uncer-
tainty over the steel strike which unset
tied yesterdays stock market as 1t was
the money situation The former con-
sideration had been pretty well dis
counted as a market factor last week.
and the overnight Developments brought
no radical change 80 far as the stock
market was concerned. The main fac
tor Of the day was the money situation.
which Wall Street had been led to be-
lieve was considerably improved on
account Of the increase in surplus re-
serve In last Saturdays bank statement
Such was not the case, however, for as
soon as stocks had started upward yes
terday afternoon, after having declined
early in the day on profit taking. the
market was suddenly confronted with
the highest rate for call money since the
early part of the summer, to be exact.
since June 2S. This of course put a
check on any plans which professionals
may have had in mind, but 1t failed to
weaken the markets undertone in spite
of the unsettlement caused by profit
taking at the outset.
The reason for Is per cent. money,
which was the rate toward the closing,
was a mystery to Wall Street Had
there been another deficit in reserve in
Saturdays bank statement or had It
happened two weeks ago, for instance,
when the banks were engaged with the
transactions involved in the payment Of
the third instalment of Federal taxes,
there would have been a good excuse
for such a condition of affairs. Or II
II had happened even last week in face
Of the heavy withdrawal on the part of
the Government It could have been ac-
counted for very easily, but In the face
of an improvement in the reserve posi-
ton on Saturday II was hard for Wall
Street to believe its own eyes. At any
rate 1t was the cause of checking n
very favorable rally IN the market, and
at the same time the cause of consid-
cradle unfavorable comment from COM
mission houses. In the confusion which
followed the steel situation was over
Swallowed entirely, and 1t might well
have been for that matter. II the labor
leaders had expected to gain an impor-
tant advantage by the calling out OF the
men of two additional plants they must
have been as disappointed as Wall
Street was pleased with the result. Not
only did the strike In these two mills
fail entirely but once more steel officials
reported improvement all along the line.
If the market was disappointing in
the sense that the encouraging rally in
the afternoon did not continue 1t was
still a very active and somewhat SEN
sational affair. Trading aggregated al
most 100000 shares, and sensational
movements. with which Wall Street has
become familiar of late. continued in
the case of Crucible and a number of
other high priced issues. Crucible went
to a new high record with a net gain
for the day of more than fifteen points,
and there was a five point gain in Gen.
eral Motors. The action of Steel COM
mon was again very encouraging to
the financial community. Steel got to a
new high record for the current move
rlent, although losing a good part OF
this gain in the reaction which followed
high money rates in the last hour. The
oils and motor shares were likewise very
strong until the last half hour. Ameri-
can Can, which gave evidences of be-
coming very active on Saturday, was
disappointing in that it did not follow
the rest of the list, but under the cir
cumstances gave as good an account OF
itself as might have been expected.
Specialties followed the active leaders.
but were not as prominent as they were
last week, when attention converged
very largely on the individual stocks.
The highest rate for money, which was
10 per cent, was unofficial. The high
for the official rate was 10 per cent
Nevertheless transactions were made at
tho Is per cent. figure, and in eXplana-
ton the banks said that the sudden
furry was due to heavy Withdrawals on
the part of the Government. These
were under way all last
week, and it was generally supposed at
The opening of business yesterday that
very little difficulty would be experienced
m this direction this week, inasmuch as
important bankers had been quoted re-
Gently as expecting easy money for
some time to come. The sudden furry
therefore, was a complete surprise and
provided professionals with just the ar
sument they needed in forcing prices
ower The foreign exchange market
" as featured by weakness in sterling,
which reacted in sympathy with the un-
favorable news concerning the strike In
Great Britain.