The sun., 1919-04-09
FINANCIAL NEWS
AND COMMENT
Prices React in Last Hour on
Profit Taking in Years
Biggest Market.
100000 SHARE SESSION
Rails Sluggish-Few Issues
Make Big Gains-Wheat
Crop Is Factor.
100000 SHARE SESSION

Responding to the bullish factor pro-
duced by the Government crop report
and again ignoring bearish factors
which at another time would have been
impressive, trading broadened yester-
day into the biggest market OF the year
and public participation was larger
than II had been in many months.
Around 100000 shares changed hands.
Aside from the rails and United States
Steel common. active stocks moved
forward easily until the last hour when
large blocks which suggested profit
taking appeared. In consequence the
close was generally a fraction below
the best price for the day. Reactions
Of a point from the top brought In
large buying ORDERS and the largo offer
ings by reason OF the prompt absorp-
tion only served to demonstrate the
strength OF the upward movement. How
soon the we'll recognized bearish infiu-
ences. such as costs Of production in
Guiding labor demands, reduced earn
ing power, the Victory bond campaign,
&C., will surmount the appreciation IN
values as result Of recent buying can
not be predicted. but values are now sut-
fciently high to induce conservatism in
undertaking further commitments.
Tho need for conservatism 10 empha-
sized by the bidding up with almost
unprecedented rapidity Of q number Of
highly speculative industrials, about
whose future there 10 moro or iess con-
lecture Stocks which moved easily
were American International, which
reached s1h. 20 points above Satur-
days low: Associated Dry Goods I'D
four points, Burns Brothers UP more
than 20 points. Kelly Springfield up
points. United States Industrial Alcohol
UP points United States Rubber up
~ points. Bethlehem Steel Issues were
In strong request. but other steels
made little progress. The rails were
sluggish. The sensational advances In
few issues,, however. contributed to
the sentiment of cheerfulness regarding
finance. which no doubt reflected the
lack OF money stringency. confidence re-
garding the success of the forthcoming
loan campaign and the forecast OF an
extraordinarily large winter wheat
crop. There was also general belief In
tho Improvement Of prospects for an
early peace although the discussions be-
tween President Wilson and Premiers
Lloyd George and Clemenceau appeared
to have reached the vita,s and funda-
mentals.
The outcome Of the Governments at
tempt to stabilize steel prices was a
OF trading and an important conference
between the committee Of the Associa-
ton OF Railway Executives and the lead
ing bankers of this city was held rela-
tive to the big July l requirements of
the railroads. Both of these problems
loom large on the financial horizon as
difhcult to settle and as capable Of
preventing upward movements in the
steels and rails therein involved. On
the other hand the Governments wheat
crop estimate exceeded expectations,
forecasting at s2.26 a bushel a value of
more than $1,000. 10000 The condition
percentage OF 1913 is the highest April
figure since 1882 and Is said to be the
second largest ever reported. The fore
cast of s37.000,000 bushels not only
would run 50iper cent. above last years
winter harvest, but would exceed by
$4,000. 900 bushels. or more than 20 per
cent. the best previous record. Should
spring wheat reach only the yield of
1917. there would be produced this year
more than 1.o00.000.000 bushels of
wheat. which would only partially offset
the probable shortage of foreign crops
On such a harvest the American pro-
Queer is guaranteed S2.26 a bushel.
There was very little business In the
time money market and call money rates,
after opening around 8 per cent for
mixed collateral and 5a per cent. for
all Industrial. again advanced to 8 per
cent. and 6h per cent. respectively be-
fore the close. The foreign exchange
market was steadier than 1t has been
In some time, rates for sterling and
franc exchange moving slightly against
New York and neutral rates in general
moving slightly in New York's favor.
There were no indications of an imme-
diate resumption of the recent violent
movements in either direction.