The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-31
FINANCIAL NEWS
AND COMMENT
Heavy Tone Is Dominant in
Stock Market, Rejecting
Midsummer Quiet.
TRADING rs PROFESSIONAL
Over a Million Shares Change
Hands and Most Issues
Have Net Losses.
TRADING is PROFESSIONAL

A heavy tone predominated yesterday
in the stock market despite the influence
of the steel statement for the second
quarter, suggesting in part that the re-
port had been discounted In influential
quarters and in part that without the
report notable declines would have been
recorded. Including the beneficial effect
Of the Steel Corporations earnings, ac-
| tive stocks showed net losses of one to
| three points with the exception of the
following strong active issues: Hide and
Leather common, United Cigar Stores
and Retail Stores and United States
Food Products Following the opening
| there was a brief display of strength in
United States Steel. but in line with the
general trend for the day this issue de-
clined more than 21s points from the
top in the later trading The volume OF
trading was around 1905 shares, but
price movements found no enthusiasm
indicating the usual midsummer lull
with tendency to await a definite
change in the money situation before
undertaking operations on the construc-
tive side. Trading was largely profess
sional, the public apparently being con-
tent to make money in fields apart from
stock speculation. 1t would be easy to
exaggerate the degree of weakness
shown yesterday. watchful waiting for
new and important constructive de-
velopments seeming to characterize the
attitude of the investing and speculative
public.
The bugaboo of positive action by the
Federal Reserve Board to curtail pur.
chases and sales of stock was again dis.
played prominently. some of the lending
houses warning customers to anticipate
high carrying charges and suggesting
the disposition Of long stock. Much was
made yesterday Of another meeting oil
| the Federal Reserve Board, so much as
to cause Gov. Harding to issue late ir
the day a statement to the effect thai
the reserve board has already made clear
It's position regarding the call loan mar.
ket and has nothing further to say or
the subject at this time. From this
| statement the Street gathered the i'm.
preston that the Federal Reserve BoarG
Is satisfied with conditions as they exis
at present and will not interfere so lour
as the market proceeds along orderly
| lines and so long as excessive specula.
ton is avoided. The market was so or.
derby yesterday that call money rate,
huctuated within narrow limits, the
maximum being per cent. on all indus
! trial and the minimum being 5% ne,
cent on mixed collateral.
Investigation OF the proportion of time
loans to total loans by the Wall Street
| banks discloses that time loans are al
| an especially low ebb. In most case.
banks will loan on time only to the ex.
tent Of deposits left with them for fixed
periods whether the rate is above the
legal maximum Of per cent. or not
One institution IN the Street has out only
$7.5o0,00o In time loans against a total
| loaning item well In excess of 100000.
goo. This suggests that stock marke,
operations are approaching a time when
they will be financed exclusively by call
| loans, circumstance which will prove
| distasteful to many of the more con.
| sentative houses Apart from the
| natural apprehension regarding the sup.
ply and demand Of credit for Stock Ex.
change purposes. the investing and
| speculative public delays active opera.
lions in the Street owing to the lack Of
speed in the solution of the foreign credit
problem with the correction of the for.
| eign exchanges involved Herewith. II
Is held in some quarters that our own
prosperity or opportunity for big de-
velopment hinges on the immediate CO.
| ordination of credit facilities in the
United States and the immediate adop-
| ton OF a comprehensive plan. II SO the
| delay Is critical and the position of ex-
change Is extremely troublesome to our
exporters
The foreign exchange market is very
thin with a wide range between the
high and low of each day. For ex-
ample, yesterday francs made a new
low in the early trading and then ad-
vanced Al points before the close. II
is difficult to see how an enthusiastic
stock market can be staged until such
fundamental problems as deprecated
foreign exchange, wholesale lack OF for
eign credit extensions and the railway
tangle are solved, at least In part.
Meantime domestic business with in
creasing operations is making forward
strides. the Iron Age reporting gains in
capacity steel operations at time when
slackening often occurs, and the day of
constructive market operations may
come at a date earlier than anticipated
in quarters close to the problems at
Issue