The sun., 1919-06-24
FINANCIAL NEWS
AND COMMENT
News From Germany Has Lit
tie Effect on Stocks, Which
Weakens Near Close.
PEACE SHARES STRONG
Call Money Goes to 10 Per
Cent. in Last Hour, Appar-
emily Without Reason.
PEACE SHARES STRONG

! The action Of the stock market yester-
day was undoubtedly disappointing to
those who expected something more In
the way Of advance on the announce
inent that the Germans had accepted the
peace treaty. But It was a perfectly
logical development In the light OF the
| TACT that the market last week seemed
to have pretty generally discounted the
first effects of the signing of the treaty
1 The impression had been so strong on
both Friday and Saturday that nothing
remained for the Germans to do but
sign, that yesterday there was little sur
| prise or tubilation over the official an
nouncement The market took the news
| calmly and did very little all day ex-
cept In the last hour or so, when the
market money firmed again to 10 per
cent. for the first time since the furry
two weeks ago. This created some I'M
| settlement In certain quarters, where the
impression already prevailed that the
market might have to go through an
other week Of firm money on account Of
the July dividend payments. but the
market took all offerings easily and
there was an encouraging rally right at
There were still a number of special
stocks which stood out prominently all
day. but for the most part It was the
same kind of a. market which Wall
street has been experiencing ever since
the shakeout earlier in the month,
market in which the professional ele-
ment predominated. Trading was very
much Quieter and the trading element
round II comparatively easy to swing
prices their own way, as was demon
started first by the initial advance at
the outset on the announcement OF the
a N a NJ thn ft-na to-
later In the day by the rise In call money
although that development was not as
significant as It appeared to be on the
surface OF things. Preparations I'M
doubtedly are going on to meet tho July
L dividend payments, but they should
not cause any such furry in the money
market as took place on the payment OF
the second instalment of Federal taxes.
In the first place the pace of speculation
at the present time is very much quieter
and In the second place the strain on
The banks will not be so great by any
means. 1t Is reasonable to suppose that
the rate on call money is likely to
remain at to Gh per cent. during the
best part of the week. but there Is no
reason for any higher money in the
light Of the showing which tho bank
statement made last Saturday.
OF all the various groups of special
stocks the motors stood out most prom
inently all day. There was another
sharp squirt IN General Motors, Chand-
Ter made another rev high record, and
there was excellent buying again In
some OF the other motor shares Other
wise. however. II was very much OF the
same kind Of an affair as the imme-
diately preceding sessions. The food
stocks or other issues which are sup
posed to be the ones which will benefit
first from the signing of the peace
treaty were strong. and all Of tha pool
Issues showed strength at one time or
another. although most of them lost
at the closing along with the standard
shares. Steel common made a new
high for the current movement during
the forenoon. but was decidedly heavy
toward the closing along with the cop
pers. although reports continued favor
able concerning conditions in the copper
meta; market The rails were generally
neglected and there was little interest
elsewhere. The indica tons, in fact, were
that the market was returning to the
trading area from which 1t was dis
lodged earlier in the year by the en-
thusiastic wave of public buying
There was much surprise In broker
age circles at the closing over the rise
in call money. While it had been ex-
pected that there would be some firm
ing rates for the July 1 dividend pay
ments. nothing such as took place during
the last hour yesterday, when call money
reached 10 per cent. was looked for
Nor could any good explanation of this
rate be obtained. The pace of specula-
ton Is much slower. the bank statement
showed Improvement last Saturday and
1t Is a we'll known fact that the July
l payments are not as large as some
people have been led to believe. Yet,
in spite of all this. money yesterday
went to 10 per cent Another interest
ing development was the action OF the
foreign exchange market on the an
nouncement of the acceptance OF the
peace treaty by the Germans. In this
respect 1t might have been supposed
that the exchanges would have rallied
on the theory that resumption Of
trade conditions cannot be long de-
layed. Yet the most important exchange
rates were weak all day. Sterling lost,
as did francs and lire.