The sun., 1919-07-30
FINANCIAL NEWS
AND COMMENT
More Active Stocks Decline
From Fraction to Three
Points During Day.
TOBACCO ISSUES STRONG
Volume Of Trading Again
Rises to More Than 1,000,-
600 Shares.
TOBACCO ISSUES STRONG


patches regarding themeeting yesterday
OF the Federal Reserve Board and the
desire to withhold important commit
ments on the constructive side until the
quarterly statement OF the United States
Steel Corporation could be assinaiiated
brought about notable recessions in the
nrst half OF yesterdays session. The
meeting Of tine reserve board was OF less
Importance than wall Street had antici-
pated, but n complete recovery In prices
from the early lows was prevented by
rise In all Industrial money rates to .
per cent. Tho more active stocks show
ing losses for the day OF a fraction to .
points, with the exception of tobacco
issues, which were features OF strength I;
New Haven. In which there IL specula-
tive buying. and two or three specialties
Of little Importance. The volume OF trad
ing was little more than 1000. 900 shares,
and an estimate of the immediate trend
could not be based with certainty on
|yesterday's operations.
The specific reason for the recessions
was ascribed 10 apprehension regarding
the future influence OF the money market
with an unauthenticiated report that the
August bulletin Of the Federal Reserve
Board would announce definite action to
reduce the amount of credit available for
speculative purposes The meeting OF
the Federal Reserve Board Mt II o'clock
yesterday morning was wen advertised
on news ticksrs over brokers' wires Just
what tho reserve board could do in addi
ton to its earlier warnings against over
speculation and to It's request Of the
Federal reserve banks to give a. little
assistance as possible to borrowings for
Stock Exchange purposes was not clear
even 70 those who advised the sale Of
stocks. but the uncertainty was not fully
removed by the announcement that the
reserve board had adjourned without
taking any definite action. whether the
Federal Reserve Bank OF New York as
sists it's member banks In extending
credit for Stock Exchange purposes or
not there appears to DO trend toward
tightness In the money market which Is
distinct from previous advances In call
money rates. Throughout the month of
June Government Withdrawals Of cash
from the banks caused a sharp advance
In call rates for q twenty-four, forty
eight or seventy-two hour period. but the
present advance has not been due to
Government Withdrawals. but to a gradual
and cumulative diversion of funds into
fields Of industry ard Agriculture. Not
only 10 there an appreciabie advance In
call rates. but banks appear to be loath
to loan money on time even at per
cent, and as time loans mature q larger
and larger amount Of speculation has to
be financed with call funds exclusively.
The fact that the supply OF money and
credit IN Wall Street IL being affected by
the increasing demands from industry
and agriculture wns illustrated by the
quarterly statement OF the United States
Steel Corporation. which indicated big
ger gain In its operations than the Street
had anticipated. Net earnings for the
June 30 quarter were actually larger
than those for the preceding quarter. and
a director authorized tho statement that
the earnings included no adjustment OF
accounts or credit for overpayment OF
taxes last year. Tho earnings Of about
az Der cent. ON the common stock per
mitted the conservative declaration OF
IN per cent on the common and the ad-
dition TO surplus account Of more than
100000. Were there no countervailing
factors. the unexpectedly favorable show
ing In the steel statement would have
a far reaching constructive effect On
der the circumstances, an improved SEN
timent regarding steels and other metal
issues Is to be expected.
Foreign exchange suffered moderate
reaction yesterday, sterling losing
part of Mondays advance In an UNI
usually thin market and francs making
a new low record Of 7.2T franos to me
dollar. with a slight recovery toward the
close. Belgian francs and lire were on
slightly. There was little feature In cot
ton or grain.