The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-07
FINANCIAL.
AND COMMENT
Market Receivers 2 to 6 Points,
Wiping Out Many Traces
Of Recent Break.
INDUSTRIALS GO HIGHER
Rails Make Moderate Rallies
Frames Drop to New Low
Record at 7.72.
INDUsTRIALs GO HIGHER

extent Of two to six points, wiping out
many Of the traces of the break at the
beginning OF the week and suggesting q
rccoil from over extended pessimimn.
Nevertheless II remains to be seen
whether the continued and rapid recov-
cry In stocks can be maintained IN the
face OF factors which were ignored
entirely during the ave hours Of
trading. For = day or 30 the rail-
way situation may DO forgotten. tho
labor unrest dismissed from oonsid-
GRAFTON by the SPECTATORS and q super
flcial decline In call money rates re-
garded as an Indication Of real better
ment In the money and credit situation.
but none Of these factors 10 negligible
In any sense Of the word. From the
start Of trading. when bulls seized upon
the results Of the United States Cham
Der Of Commerce referendum on senti-
ment regarding Government ownership
as n good omen. to the closing gons
the investment and speculative attitude
was constructive, the buying compris-
ing both the covering OF recent specula-
tive sales and new purchases in antici-
patton Of q further rise. Not only the
impression that the Boishevist moves Of
the railway hrotherhoods would DO
cheokmated by Congress. but the state
ment Of the head of one Of the brother
two or three months or until Congress
and the President had time to act to
ameliorate tho labor unrest were re-
gardcd as measuring Too much Inn
portance. however, should not be at
tached to the constructive character Of
yesterdays demonstration.
Tho entire LIST showed q better tone
st the opening and the recovery in prioss
Progressed. under the Leadership OF the
ruhbera the tobaccos and the steel
shares At the best price Of the day,
10TH. United States Steel common was
nearly points above the weeks low.
There was at least one concerted at
tempt to ind weak spot In the market,
but the consistent advances disclosed
the strength in the markets technical
position and the shorts ran to cover
when the call loan rates eased below
6 per cent
The best prices Of the day were
reached in the nnal half hour, when
United States Rubber was forced I'D
above $50 for net gain Of IAN points
and other active industrialg ended the
day well above Tuesdays nnal. Most
Cd tho rail stocks made a moderate re-
covery. none Of the active ones gaining
as much as points and Atchison show
Ing net loss OF x Of q point on the
day. It was clear that the psssimism
had been excessive. so far as the in
dustrfals were concerned. but the rail-
road situation Is still muddled and the
outlook Ia not sufficiently favorable to
permit huliish operations Of MAGNITUDE.
AZ result In part OF the attraction Of
Idle funds from the interior, the call loan
supply was considerably greater than the
demand. the repeated offerings forcing
the rate down officially to aH per cont.
with one loan reported at per cent
Curiously enough at the time that call
loan funds were almost unlendable, a
brokerage house. with credit second to
none. negotiated a time loan, getting 25
per cent Of what II needed and paying
per cent for tho four months accom-
mediation. That incident furnishes real
test OF the money and credit situation
which confSonts the Stock Exchange
houses and suggests that much freer Of
ferings OF time money must appear be-
fore anything but temporary betterment
in the supply of credit for specuia-
two purposes can be seen. Psycholog-
ically. however. the drop in call money
rates influenced a more liberal sentiment
regarding stock purchases.
Outside Of the rally in all Of the &C
tive stocks. with the single exception OF
Atchison. the chief feature in the finan-
cial world yesterday was the sensational
break in exchange on Europe. The fall
In rates carried sterling down to $4.30
TO the pound and francs down to 7.72
francs to the dollar. new low record In
The case of exchange on Paris and
close to the low record In the case
Of exchange on London. There were
| similar but less expensive movements
In all Of the other Continental ex-
changes An Unexpectedly large volume
Of drafts on Europe, which had been
withheld IN the hope Of an Improvement
In rates was marketed, yesterday. and
as no offset had developed, weakness was
the inevitable result.