The sun., 1919-10-04
FINANCIAL NEWS
AND COMMENT
Reaction in Stocks Continues
Unabated, Emphasized by
Weakness Of Favorites.
SALES RELATIVELY LIGHT
Many Issues, However, Put Up
Stubborn Resistance to
Selling Movement.

The reaction which began in the stock
market or Tuesday continued undated
for the greater part OF yesterdays ses-
sion and the downward tendency was
again very strongly emphasized by
reason OF the weakness of a number of
leading speculative favorites and stand
ard stocks. These issues displayed an
extremely heavy undertone all day. a
circumstance which was not at all sur
prising In view of the unfavorable re-
ports from washington concerning the
Presidents condition. The Street did
not believe that Mr.. Wilson's illness
would result fatally; rather the thing
which worriedVWall Street was the PROF.
pect Of the President being forced to
lay aside business matters for q long
drawn out period. Nevertheless there
was good deal Of uncertainty: and
what with the continued unsettlement
occasioned by the steel strike. the fact
remained that there was very little in
ducemeot to buy listed securities. The
one favorable feature of the whole day
lively light, but this circumstance could
hardly be expected to stimulate con-
structive operations.
Under the circumstances, however, the
market undoubtedly did about as well as
could be expected. There were all sorts
OF rumors afioat concerning the Presi-
dent. and the weakness Of most securi-
ties. of course. gave the bears another
opportunity to point out the unfavorable
features Of the steel strike situation.
But the most damaging thing of all were
the ruucrs. That the market stood UP
so we'll under these conditions was very
significant in that It again emphasized
the fact that has been pointed out re-
peatedly in this column of late. namely
that stocks had once more drifted back
into strong hands. There was a good
deal of professional selling mixed in with
the liquidation. but all of It was readily
absorbed on a scale down, and once Of
ferings ceased the stock market showed
a tendency to rally. All such rallies were
short lived, however, but once they were
under way, stocks recovered easily. The
only trouble was that whenever rallies
occurred there was no buying power to
sustain them. The result was grad
ually sagging market. with prices easing
until the closing. which was the weakest
period OF the day.
As has been the case all week. there
were a great many stocks which pro
vided stubborn resistance to the selling
movement Mexican Petroleum was on,
of the most conspicuous of these. selling
at a new high record right In the mids
of the selling. American Locomotive and
other equipment issues also gained, a!
did, American Tobacco. which stood on
very prominently all day for its strength
The reason for this strength of cours'
was the announcement of the new com
pany which will take over the American
Tobacco Company on basis of fou
| for one. The rest of the tobacco stocks
however, were inclined to sag off will
the rest of the list. The steel share
probably were the weakest features o
all, for the reason that they have at
tracted most attention. of late. Their
was still a great deal OF profit takin
| in these issues to be accomplished yes
| terday. which added fuel to the fire. Cru
| chile again experienced another YER
sharp setback right at the outset. Will
most OF the speciality shares, which hav
| been conspicuous for their strength
| closed the day with substantial net de
\ clines.
In addition to all the various rumor
/ and other developments of an unfavor
| able nature with which the stock marke
| had to contend. money was very firm al
| day. Call money loaned at IL per cent
| in the last hour and there'was a consid
| cradle amount loaned at this figure. Thi
marked the fourth day on which none
has been bone of contention and ii wa
not surprising that considerable unfa
vorable criticism should be arouse
among the commission houses. In tn
| face of this high money not singl
plausible explanation has been forth
coming on the part of the banks excep
that the Government has been maxim
heavy Withdrawals daily. This conditio
of affairs, however, has besn going o
ever since the last Federal tax instal
ment, and IL the banks have been quote
correctly in the amounts withdraw
daily the Treasury Department mus
have about all the available cash an
credit in this district by now. The fol
eign exchange market was irregula
again, with sterling lower and franc
and marks generally holding firm. Bus
ness was very quiet. however.