The sun., 1919-06-14
FINANCIAL NEWS
AND COMMENT
Stocks Break Again and
Heavy Liquidation Lasts
Most Of Day.
FEW ISSUES HOLD FIRM
Active Shares and Standard
Specialties Have Another
Partial Collapse.
FEW ISSUES HOLD FIRM

the stock market yesterday, the fourth
In succession this week, with heavy
liquidation continuing throughout the
best part Of the day. There were a few
hrm spots In which the movement of
prices was contrary to the general trend.
but for the most part the active stocks
and speculative speciaities went into a
fresh stage OF partial collapse. An ex-
tonsive array Of net declines was again
exhibited at the closing. and II did not
appear as though the selling movement
had been completed with the suspension
OF trading. But II the movement was
disappointing in that II opposed less re-
sissance than on either Wednesday or
Thursday, II was still an orderly affair
with an entire absence Of panic. Buying
OF substantial character took place on
the scale down, and there were some in
dications at the close that the market
had gone through about the worst. so
far as the money situation was con-
cerned.
1t was a curious feature OF the trading
that the selling should have been the
heaviest at the closing in spite of the
fact that 1t was general knowledge In
the financial community that the money
market from now on should show Inn
provemsnt This led to the impression
perhaps In the closing moments that
there might be . further and more seri-
Gus reaction, but II It takes place II VII
be because there has been q complete re-
vulsion Of the bullish sentiment and not
because OF the money situation. While
II Is not expected that there win be an
immediate return of money rates to thu
normal levels, nevertheless II was ad-
In n -tr hat
the worst had been passed. for the time
being at least At any rate, one thing
Is certain and that il that there will be
no money troubles to-day. for all Dor
rowing operations were completed as
usual yesterday for over the week end.
This put the question over until Mon
day. by which time, Il Is expected in
banking circles, enough Of the money
paid to the Treasury in taxes will have
flowed back to the banks to check the
present tendency.
The most severe breaks In yesterdays
trading were in the industrial stocks
for the reason that the highest rates
for money were quoted on loans for all
Industrial collateral The declines were
especially severe In General Motors,
Mexican Petroleum. all Of the motors
Pan American Petroleum. Sinclair OIL
and, In fact, all other issues in which
advances have occurred all out Of pro-
portion to the rest Of the market. The
steels. although showing rather gener-
ally declines at the end Of the day.
we're we'll bought on a scale down and
there appeared to be the best kind Of
buying In the equipment sharea The
same thing was true Of the tobaccos
With the exception OF one or two of
the lower priced industrials the to-
baccos were about the only group of
stocxy on the list to show any marked
resistance to the downward movement
In the rest Of the market The rails
were pretty much neglected throughout
the day. and although sharing to some
extent In the declines the losses In this
department were not nearly so marked
as elsewhere. Southern Pacific was one
OF the weakest Of the railroad group.
In so far as the money market sit
uation was concerned. IL was the most
remarkable market which Wall Street
has experienced since 1915. when money
loaned up around Is per cent in the
midst Of the peace panic. The situation
probably would not have been 90 bad
yesterday II II had not been for the fact
that all arrangements for money for
over the week end had to be made be-
cause there 10 no money market to-
day. This made an extra strain on
thA resources Of the banks which had
been already severely taxed by reason
OF the preparation for the second in
stSlment on Federal taxes to-day.
There was much criticism in some cir
Giles over the manner In which the Fed
eral Reserve Bank had handled the
whole proposition, but this was largely
unwarranted. for the reason that Wall
Street. as usual. had largely under
estimated the size of the strain that
would be involved with the payment of
Na-
was quiet. Sterling was a tribe easier,
but francs and lire continued arm.
Neutral rates also showed improve
ment