The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-27
FINANCIAL NEWS
AND COMMENT
Trading Comparatively Quiet,
but Stock Market Shows
Marked Improvement.
PRICES RISE ON DEMAND
Buying Of Steels Is Feature Of
Session, and All Issues
Make New Highs.

Responding to the favorable overnight
developments in connection with the rail-
road wage controversy, the stock mar
ket made another pronounced improve
ment yesterday, which was rather uni
form so far as the Industrial shares were
concerned. Trading was still on very
quiet scale in comparison with the aver
age sessions of several weeks ago, and
there was no alteration of the profess
sional character of the market but prices
| advanced very easily whenever there
was much demand and in the main the
market held whatever improvement that
had been recorded to the closing, which
| from the viewpoint Of speculative expe-
rience was far more OF a test Of the
markets underlying position than was
the advance in securities itself. I'm
doubtedly large proportion of the buy
| ing represented the efforts of traders to
| cover short contracts which they had
put out In the midst of the decline last
week before prices went on any higher
! but there also seemed to be a fair
amount of outside buying for the first
decline since the recent shakeout.
| Aside from the growing conviction that
the various industrial considerations
with which the financial community ha )
| been engaged Of late are in a fair way
toward solution, what prices responded
to chiefly yesterday was the favorable
character of President Wilson's decision
| with respect to the railroad wage Ques
ton. The aspect Of the situation which
interested Wall Street most, however,
| was not so much the railroad end of tn :
problem as 1t was what the general eff
| feet OF the Presidents decision would be.
as was evidenced from the fact that 1t
was tho industrial stocks and not the
IL, AZ h. hno CHI tn~ ",
yesterdays trading. The assumption
which Wall Street went on in this con-
nection was that II the President had
taken a firm stand against any further
increase in railroad wages he could
hardly help but take the same stand
with respect to other industries which
are trying to get back to a normal basis
In other words 1t was figured In the
Wall Street community that the same
principle applies to the steel situation as
it does to the railroads. There Is OF
course no assurance that labor leaders
intend to follow the Presidents decision
but the action Of yesterdays marke;
tended to indicate that for the present al
least Wall Street is convinced that mos
Of the difficulties in the matter Of labor
are over.
The most impressive feature about
Yesterdays session undoubtedly was the
buying of the steel shares. Despite the
fact that this industry is supposed to
be facing a nationwide tieup all Of the
issues In this department made new high
records for the current movement yester-
day. Steel went above 103 there was ar
especially violent rise in Crucible which
carried it at one time up as much as
fourteen points above the preceding day.
closing. AS matter Of fact, all Of the
recent speculative favorites shared in the
improvement to some extent Baldwin
got up above 10S. The railroad share:
still attracted a good deal of attention
as might have been expected in view o.
the Importance of the Presidents deci
sion with respect to the railroad wag'
situation. but as compared with the buy
ing which went on in the industrials the!
took a poor second place yesterday IL
the matter of activity. Still there wa!
Improvement in most Of the higher priced
rails, particularly those of the type o
Reading, Southern Pacific, Union, Atchi
son and New York Central Specialize
continued to attract attention, as dit
some Of the individual issues. but gen
orally speaking, they were rather over
| Swallowed yesterday by the activity ii
the steels.
| There was very little change in tn
] money situation. Call money loaned at
- per cent until shortly before the closing
! when the quotation dropped to 5ia pc
cent. This reflected a slightly easie
situation. but not enough improvement
had taken place to permit prediction
that the situation would be righted to
day. Foreign exchange was quiet an
I steady. Sterling showed a slight
heavier tone at the outset. but recovered
Z the rate adhering closely to 1920 a.
day. Francs were not changed. Lir
4 sold off about four points, and peseta
suffered another sharp break of abou
twenty points, which was due to tn
same considerations as were pointed ou
in this column yesterday. Kroner like
/ wise were under pressure, declinin
j rather sharply. Much discussion wa
\ heard in financial circles again abou
I the possibility of the establishment @
I several new credits with European ma
4 tions, but thus far no confirmation ha
4 been obtainable. Cotton held steady
while tho grain market was weak