The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-09
FINANCIAL NEWS
AND COMMENT
In Market of Confused and
Rapid Changes Final Tone
Is Firm.
SHOW RECOVERY FOR DAY
Francs and Sterling Improve
Moderately, but Neutrals
Vary Little.
SHOW RECOVERY FOR DAY

A market Of rapid and confused fuc-
tuat tons with recovery at the opening,
followed by a vigorous selling move
ment, which was succeeded by another
recovery, with a slight reaction from the
best prices of the day I'm the final fifteen
minutes, Indicated a feverish state of
mind on the part OF the investment and
speculative public and induced caution
from those who thought that Thursdays
break should be followed by harp and
sustained rally. The general belief was
that the slump was engineered by the
bears, who failed to take into considera-
ton the reports from Washington to the
effect that private poll of the Senate
revealed an overwhelming sentiment
against tho Plumb bill and the labor
programme for drastic Government own
ership and disclosed proof that Congress
cannot be stampeded by the labor
unions. Instead of liquidation and the
unoovering of stop loss orders the bear
raid merely showed the resilient power
of the market at the lower levels, and
the tone Of the market at the close was
more hopeful than has been any final
display during the last ten days or two
weeks A noteworthy feature of the day
was an abnoImally wide fiuctuation of
prices between sales whether the market
was III SlABe OF reaction OF recovery.
Altogether. with sales at or near the
100000 share mark for the first time
since early in July, the session was one
Of the most interesting and important
trading days this year.
Both the bulls and bears appeared
anxious to even up their commitments
over the week end. Typical OF the mar
ket was the action of United States Steel
common which opened at 102%. rose to
1e3 In the first hour. declined to 100k
In the bear raid, then rose to 103N,
ending the day at 1903. In the swaying
back and forth throughout the entire list
there were many wider fluctuations than
that of Steel. but the rails were the only
class of stocks to fail to share in a sub
stantial recovery. The best feature of
the five hour trading was the fact that
q constructive movement came into the
ascendency In the final hour. A factor
in the buying initiative at the start of
the day was improved sentiment by rea-
sor of the Presidents attitude in d.
recting Director General Hines to ne
gotiate with the disgruntled railroad en-
ployees, at the same time ordering the
striking shopmen to return to work.
The bear drive needs no particular
explanation, the ammunition being fur
nished by apprehension that the Presi-
dents recommendations to Congress
would be so drastic as to depress fur
Their market values. The message ap-
peared after the close, but 1t appeared
to be drastic only in such way as
would prove constructive in the long
run. The revival of the capital is
sues committee and the proposed Fed
eral licensing system may work for a
time to curtail net profits, but at the
same time the former should conserve
capital and the latter should rid the
country of exorbitant practices that
were tending to cut out all profits. The
Improvement in the market In the late
trading followed the reassuring reports
from Washington regarding the attitude
of Congress toward labor and Its
schemes as well as the news that the
Director General could not postpone
beyond the immediate future Wholesale
purchases of steel rails. At this time
there was also discussed a report that
the untitled tonnage statement of the
Steel Corporation at noon to-day would
be more bullish than had been antici-
pated. Another factor on the construc-
tive side by reason of overpessimism at
an earlier date, was the August crop re-
port, showing a total indicated yield OF
$40 600, 600 bushels of wheat exceeding
every other wheat crop in our history
except the I'Vzo'ouO'OVV Dushel yielu o.
1915, and small only by comparison with
the extravagant estimates OF an indicated
total yield of 1,161, 100000 bushels in
the June report and 1,236,000,000 in the
estimate of May. Much had been said
of the damage to the corn crop. but the
August report gave an indication OF
only $1,000. 900 bushels less than that
Of the July forecast
There was no new feature in the
money situation. call money loaning al
per cent TO 5h per cent In range and
some time money being put out at 7 per
cent. There was a moderate improve
ment in francs and sterling in the for
eign exchange market. but neutral re-
mittances showed no change Of note
Action In grain and cotton was some
what similar to the wide fluctuations in
| stocks.