The sun., 1919-08-02
FINANCIAL NEWS
10 AND COMMENT
Prices Of Stocks Rally Slightly
in Relatively Dull and
Narrow Market
TOBACCOS AND OILS LEAD
Other Issues Have Net Gains
of Fractions to Two Points
for Day.
TOBACCos AND OILS LEAD

In relatively dull and narrow mar
ket in the New York Stock Exchange
yesterday price movements were on the
constructive side to a moderate extent
with a portion OF the bearish element
covering or evening their commitments
and with the call money rate no higher
than per cent. The volume was less
than 100000 shares, a fact that was
not surprising in view of the two day
recess In trading. The rally was not
sufficient TO indicate any departure
from the policy of waiting for the credit
situation to clear. In the early days Of.
recessions this week there was little in
dication of liquidation. experts declaring
that the improvement in the technical
position forestalled the sort of price
movements that would cause a stam-
pede to sell stocks While prices re-
coded a little in the early trading, the
promise of a relatively adequate supply
of money as result of the completion
Of some of the August l disbursements
caused bears to take their paper profits
to some extent There was, of course.
also a relnvestmeEt of some of the funds
released by the disbursements. Taking
all the circumstances into consideration,
about what had been expected. 1t must
not be forgotten that there ere always
two sides to the market, and four days
OF even small recessions bring about a
condition in which a recovery in prices
is to be anticipated
From a general point of view the most
interesting item in the days budget of
financial news was the monthly bulletin
of the Federal Reserve Board. which had
- Oh LAT
During July speculation continued at an
unprecedently high level. At the same
time an investment demand for stocks
has revealed itself. leading to the with
drawal OF an unusual amount OF shares
from 1the market. The banking situa-
ton was reported sound, credit and col
lection conditions good and failures
small and few" If that analysis be cor
rect, bears need unfavorable news of
large magnitude to bring about recess
sions from present levels Their best
ammunition at the moment seems to be
the diversion Of credit from Stock Ex-
change purposes to other fields and the
reluctance of banks to loan money on
| time, forcing all brokerage houses to
| finance their operations exclusively from
call funds. Corporations again bid yes
terday per cent. for time money, but
| lenders continued their policy of refus-
| commodation. Tobaccos and oils con-
tinued to lead in the recovery from
Thursdays low, but elsewhere in the
active list net gains of fraction to
points marked the extent Of the con-
structive development. Steel common at
| the best gained only point and the rails
| moved within narrow limits.
The quiet tone in the stock market
was in marked contrast to the early deals
| in the Cotton Exchange following the
Department of Agriculture's crop report
| showing an extremely bullish condition
much TO the surprise of the trade. Not
only Is another short crop with a produc-
ton of about 100000 bales indicated,
but the condition on July rs was the
worst in history for that date. The re-
ported condition of 67.1 is 9 points be-
low the ten year average of 76.1 and
nearly points below the condition on
June 25. 1t took only half an hour for
cotton quotations to jump $40 bale.
| the maximum jump of 200 points per-
mitted in any one day.
Corn was weak and there was little
| business or huctuation in the foreign ex-
| change markets, most of the quotations
| being steady with a slight Improvement
in francs and sterling.