The sun., 1919-08-24
FINANCIAL NEWS
AND COMMENT
Strength and Fair Activity
End o Week Marked Large
ly by Weakness.
RAIL BUYING IS FEATURE
Rally Shows Indications Of
Stability, bdt Is Due Most
ly to Short Covering.
RAIL BUYING Is FEATURE

A strong and fairly active market
Stock Exchange In which. on the whole,
rather pronounced weakness predom-
mated in the standard shares. Speciality
stocks. which we're features of the re-
covering movement ON Thursday and
Friday, continued to hold the centre of
attraction in so far as the general list
was concerned. but the day was sig
nalized further by a rather emphatic
turn of strength in some of the higher
priced railroad shares. The fact that
these issues were strong tended to give
the rally tone Of quality, whereas the
onesidedness of the recovery heretofore
had given many traders the idea that the
upward movement amounted to nothing
more than temporary lull in the late
campaign in favor of lower prices.
There was no news to influence trad
| Ing. AS on the preceding day, and also
| on Thursday, the recovery was due al
most entirely to short covering, aided
In part at least by the usual weekend
evening up transactions by traders who
mako 1t rule never to carry stocks over
| a period of suspended animation. The
reason that the improvement went fur
Their in the tobaccos, motors and other
specialties than In the standard issues
undoubtedly was because the short sell
ing in these issues had been more pro-
nounced In the first part OF the week.
| At any rate. It could not be said that
there was anything of Importance to
help the market in the way of over
night developments. The weekly trade
reviews. of general business and of the
iron and steel industry continued to re-
port improvements. but II these consid-
| erations had anything but general in
f1uences It was not apparent on the
surface.
So far as the individual prics move
ments were concerned the specialties
still provided the most active features
The motor stocks. particularly such is.
sues as General Motors and Chandler
continued to gain ground rapidly the to.
baccos were in much better demand the
standards. although generally firm in
tone, were dull and inactive, a circum
stance, however, which was regarded a.
indicating the sold out condition Of tho
bear side of the market.
Next to the motors the shipping share
were probably the most attractive fea
lures. The common and preferred share.
Of the International Mercantile Marine
Company continued to gain ground anC
the report was circulated that the direc
tors have called a special meeting fol
next Thursday to approve the plan call
ing for payment of part Of the back divi
dends on the preferred stocks. Railroad
shares were quiet, but most of the higher
priced ones displayed a strong under
tone, another circumstance which wa.
commented upon favorably In commits
sion houses after the close of the mar
ket
The bank statement disclosed a los
of $53.90S,400 in reserve, which resulte,
in a deficit in that item OF $4,000, thi
being the second time since 1914 tina
the Clearing House banks have reporte
a deficit In reserve. The shrinkage wa
due to a loss of cash reserve Of membe
banks with the Federal Reserve Banl
which was offset only in part by a re
duction in demand and time deposits. /
accounted for the sharp rise in none
rates which was reported at the closIn
Of the market on Friday. following re
ports of large withdrawal of funds her
by out OF town institutions.
The foreign exchange market wa
quieter and generally firm. Sterlin
continued to recover, getting up to tn
highest point since the sharp break 1
the early part of the week, while bot
francs and lire also showed improve
ment.
Bank clearings for the week totale
$7.90s. 704.111 as against SS,181.S 2S, 02
the week before and S6.112.529.61s 1
the corresponding week a&year ago.