The sun., 1919-07-17
FINANCIAL NEWS
AND COMMENT
Forward Movement in Stocks
Continues Unchecked as
New Leaders Appear.
RAILS MAKE GOOD SHOW
Standard Issues Still Display
Weakness and Oils Get
More Attention.
RAILS MAKE GOOD SHOW

There were no indications In yester-
days stock market of any check to the
forward movement which has been
under way on the Stock Exchange OF
late. As on the preceding day, the
standard issues continued to display
weakness. especially. such issues as Bald
win, Crucible and Bethlehem Steel, but
whenever there was any important hesi-
,tation in these directions, new leaders
came to. the front in place of those
groups which had fallen into disfavor
with the speculative public The rail-
road shares were taken up again and
made the best showing that they have
made on any other occasion thus far in
the advancing movement. Next to those
shares, the oils occupied the main centre
of attraction. These issues have been rela-
lively neglected of late In the upward
movement and inasmuch as a consider
able short interest has been accumulated
In the meantime. II was a comparatively
easy matter to run up the oils from to
az much as 10 points and more in ex-
'treme~cases before any considerable OPP
position was encountered.
Obviously the main reason for the sud
den shifting of attention from the indus
trials into the rails was to counterfeit
the criticism which has been coming
from banking circles against the violent
movements in the industrial group. This
opposition has been perfectly well known
TO experienced observers for several days
past and for this reason the shifting Of
speculative attention back into the rails
and oils occasioned no great surprise.
There was no news again to influence
the market, even in these directions. As
in the Immediately preceding session. the
market appeared to be going forward
simply on its own momentum. While
trading was somewhat quieter than on
Monday and Tuesday. for the reason
that there was not so much interest in
the standard stocks, the buying which
came from the so-called public and which
centred on the oil, rails>and specially
stocks appeared to be just as enthusiastic
as ever. The fact that the railroads &C.
cupied a more important place in the
dealings was interpreted in some quar-
tiers as meaning that the long expected
movement in the rails was on, but this
view was not takep very seriously in
most quarters, where the opinion prevails
that the present situation in the industri-
ais is nothing more than a breathing
spell for the industrials after their vigor-
GUS advance
However with stocks in the lead like st.
Paul and New Haven in the lower priced
railroad group and with such issues as
Mexican Petroleum. Sinclair OIL. Pan
American Petroleum in the oils occupy
ing the main centre of speculative at
traction, the financial community in
general was very much relieved after
the opposition to the rise in the indus
trials which had been experienced in the
last few days. 1t had the effect OF
clearing the whole speculative situation
and at the same time furnished an
opportunity to bring about a readjust-
ment OF position in the industrial group.
which obviously was long past due. In
consequence most of the industrials of
the type OF Crucible, Bethlehem Steel
and others were under the pressure of
profit taking and professional selling
throughout the best part OF the day. But
while these issues were being liquidatcd.
in the sense that accumulated paper
profits were being realized, the copper
stocks continued to maintain their
strength and likewise so did the to-
baccos. The higher priced rails did not
make as good a showing as the lower
priced issues, but they were strong. how
ever. throughout the best part of the
| session.
The money market was still unfavor-
able. that is to say from the Stock
Exchange point of view. Money fiuctu-
ated widely all day, going above per
| cent. again at the closing, although the
rate was not quite as high as on the
preceding day. While II is still felt in
some circles that there is no reason now
for high money rates, bankers continue
pessimistic in this direction. Another
| sharp break occurred in sterling, whic..
dropped to another new low record. and
while the stock market did not pay
much attention to this. nevertheless
4 there is considerable apprehension in
certain quarters over the question as
to whether there can be any large
amount of foreign trade between this
country and other countries before this
market is stabilized again. The whole
thing. CT course. lies in the matter OF
arranging foreign credits in this country
and as soon as this step has been taken
1t should be only a comparatively short
time before the foreign exchange
markets develop enough stability to
permit trade relations.