The sun., 1919-05-28
FINANCIAL NEWS
AND COMMENT
Stock Market Reacts, but Fall
in Prices Is Orderly During
All Of Session.
MOTORS MOST PRESSED
Declines Generally Are Small
and Several Issues Recover
Early Losses.
MOTORS MOST PRESSED

The stock market again yesterday
was called upon to face q considerable
amount OF profit taking. and accom-
panying this selling was q fresh OUT
burst or rumors concerning the posi-
bility OF the Money Committee taking
action to curb the speculative epthu-
siasm. These rlmors Of course were
unfounded. as was borne out by the ac-
tion Of the money market itself, but
they nevertheless had the effect Of
bringing out considerably more selling
pressure than has been encountered at
any time for the last two or three weeks
The fact that reactionary disposition
was required to make itself manifest
during the day. however, was a salts
factory feature from every viewpoint,
and whether or not most of the selling
was actually due to the talk Of specula-
tion restrictions or TO the need OF a re-
adjustment in the main speculative po-
siuon. 1t showed a recognition of the
overextended position of the long side
OF the market and at tho same time
furnished Indications of something moro
In the way OF a reaction than has been
experienced to date.
just why Wall Street should of itself
make up story OF the possibility Of
further money restrictiona- being i'm
posed on the market to bring about a
| reaction when underlying conditions IA
vored such al movement was hard to
determine. 1t goes without saying that
there has been a large increase in brok-
ers' loans: that the public Is in the mar
ket to a larger extent than at any other
| time since 1915. and that there are a
few bankers still Of the opinion that
loans are increasing too rapidly. Yet
| 1t Is fact that the greater number Of
bankers are in favor OF taking no steps
that would tend to place the specula-
| tive market again on anything but q
| normal basis. For one thing, there Is
| plenty of money available. and for an
| other thing It Is not believed that the
| market Is In nearly such a weak posi-
| ton as It was when the collapse took
place in 1916. That caution Is neces-
| sary under the circumstances is not to
be denied. but that Is another matter
| from imposing speculative restrictions
| which have already been proved wholly
| inadequate. Another consideration
which Undoubtedly exercised some IN
| fiuence on the trading was the speech
made by the president OF the National
City Bank before the Economic Club on
money story, II appeared as though
Wall Street had given too much thought
| to the unfavorable side and too little
to the encouraging viewpoints. not only
in that speech but also in others on the
me subject.
The bulk of tho pressure centred in the
motor stocks. the rubber shares and the
equipments The extreme decline here
averaged about two points all around.
| which was rather inconsiderable as con-
! trasted with the previous advances.
Other stocks. including the steels. yielded
along with the specialtiss. but the de-
| clines here were Insignificant, as well as
in the other specialties, In comparison
with the rise that has been recorded in
| the last two weeks. At the closing a
ma Jority of these issues had recovered
substantial parts of their earlier losses. a
circumstance which spoke we'll OF the
underlying strength of the market and
the stability Of the main speculative posi-
| ton in face of such an advance as has
been recorded recently. While the sell
ing was not checked altogether at the
closing. the pressure was a great deal
less urgent At any rate, the selling
/ had sufficiently subsidized to permit the
| development Of strength in other quar-
ters OF the list such as the rails. South
ern Pacific was the leader In this move
ment going to a new high for the move
| ment, and there was equal strength in
Reading, Union Pacific and others.
Tho money market was easy. furnish
| ing in itself n denial of the reports of
further attempts to curb speculation by
way OF the money market. There was
an abundant supply all day. with rates
at about normal levels. In the foreign
| exchange market weakness again broke
out in nearly all rates except sterling,
| which was firm. Francs dropped IL CEN
times to 1854 francs to the dollar foi
checks, and lire 10 points. Pesetas
yielded five points. and Scandinavian
rates also reflected heaviness. The cot
ton market was less exciting. with re-
cess!on throughout, due to profit taking
after the tremendous rise which has
taken place in the last few days Corn
and oats were Arm to strong. Tho mar
ket was somewhat restricted owing to
| the decision of the Chicago Board of
Trade to close at noon In honor Of the re-
| turning soldiers.