The sun., 1919-03-05
FINANCIAL NEWS
AND COMMENT
Outburst Of Selling Of Stocks
Follows Adjournment Of
the Congress.
MARKET HOLDS WELL
Several High Priced Special
MARKET HOLDS WE'LL
Several High Priced Special
ties Gain, but Rails Show
Decided Weakness.


other fairly persuasive test yesterday Of
It's speculative position, and on the whole
emerged with no little credit. Its COM
posure was even more striking than
heretofore. inasmuch as the days news
Developments brought Wall Street face
to face with a situation which undoubt-
eddy will mean the return Of the rail-
roads at an early date or else an extra
session OF Congress-. That there was no
reason. however. to regard the situation
In so far as the rest OF the list was con-
cerned' other than optimistically was
plainly demonstrated by the character
OF the market, which while rather weak
nj intervals held its own as we'll as
could be expected under the circum-
stances. There was a good deal OF SELL
, Ing. OF course, OF the rails and also of
the industrials, but the low prices were
touched only momaptarily. Forthwith
the market rebounded and at the clos
ing the ground lost on the days trading
was for the most part inconsequential
Nevertheless there was no desire in
the financial district to minimize the
gravity Of the situation which now con-
fronts the Railroad Administration. At
the end OF last year something like
3S0,000.600 was owed to the various
roads In the way Of back rentals. and
while there has been some increase in
net revenues since the first of the year,
according to monthly returns, the def
lett is still piling up rapidly. II the ad-
dition to the revolving fund could have
been put through II would undoubtedly
have cleared the situation for the mo-
ment. but with this definitely put aside
until the next session, and with the
President determined not to convene
Congress In an extraordinary ses-
sion. for the present at least the
railroad problem seems to be more
confusing than at any other time
in history. 1t would be letting out
no secret in telling that the Railroad
Administration, go far as its financial
condition Is concerned. Is now approach
ing a point OF bankruptcy. Some help
might be expected from the War Finance
Corporation, but this will be limited and
sufficient only to take care of the stua-
ton for few weeks. The solution of
the whole problem. Of course, Is an ex-
ira session. but with the President in
his present frame Of mind the Wall
Street fraternity Is not looking forward
to any easy time for the railroads for
the financial standpoint
The immediate effect OF the passing Of
the adjournment Of Congress without the
passing of the general deficiency bill
with the appropriation OF $3.50, zoo. 900
for the revolving fund was an outburst
Of selling. starting first with the rails
and then gradually spreading to the
market as a whole. Losses Of from to
- much as points were experienced
n the case OF stocks which had made
most important gains in the recent move
ment. The market then steadied, and
the afternoon not a few OF the more
important stocks recovered substantial
parts of their earlier losses. Steel COM
mon and the minor industrials were of
only about an average OF a point at the
I closing. and there was continued strength
In a number OF the high priced special
ties which have been active in the Wall
Street market recently. Several Of
them, In fact, made substantial gains
during the day. This was particularly
true OF some OF the motors the leather
shares and other individual shares on
I the other hand the rails were definitely
weak all through the day. closing about
| at the sessions lowest. Among the
stocks in the class that experienced the
| largest declines were Reading. which
had been the leader in the upward move
ment. Southern Pacific, New Haven,
Great Northern and Union.
There was no change in the money
situation, that is to say 50 far as rates
| for call money were concerned. Time
money was quiet and also about I'M
changed from the preceding days clos
! ing. In the foreign exchange market
/ continued recovery in francs was the
outstanding feature. Otherwise the mar
ket was quiet and without any very I'M
portant change in rates. The bond
market was inclined to sag with the
stock market, but no very important
weakness developed anywhere In the
general list Trading in Liberty bonds
was more active, and all went lower at
one stage OF the trading or another the
avs being of as much as thirty points
at one time