Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-10-11
MARKETS BREADTH
STILL REMARKABLE
Marked Investment and Specu-
lative Aquisitiveness Fea-
ture of Trading
FLUSH OF PROSPERITY
Stock sales today on the New York
exchange, as compiled by the Evening
Sun, tOtaled 763, 800 shares.


New York, Oct. 1.-THE Evening
Suns weekly financial review today
says:
Although trading in today's short ses-
sion of the stock market did not dis
play the bullish aggressiveness which
characterized most of the sessions
through the week, it nevertheless was
remarkably broad and animated for a
Saturday preceding double holiday.
There will be no session of the mar =
ket on Monday, Columbus Day. Trans
actions were not in large lots, but the
great number of issues dealt in brought
sales in the first hour to close to 400 900
shares.
Buying initiative was. largely con-
tered in the motors and oils. several
Of the former group, like Chandler
Pierce Arrow. White. General Motor
and Studebaker, achieving gains rang
ing from 3 to % points. There was
pretty good buying of the steels, which
were consistently firm. The coppers
were also well bought. Considerable
strength was in evidence here and there
among the specialties.
Trading Very Broad
Tho significant thing about the securi
ties market in the current week was its
breadth. Price movements were far
from uniform indeed, uniformity would
be too much to expect in a market of
such scope as the present one at a
time when the number of listed stocks
on the stock exchange has grown to
record proportions.
There is always more unanimity in q
bear movement than in bull movement
because selling initiative is more con :
tagious in its effects than buying ini =
tiative except in rampant cases. The
reason for this would appear to be that
those who, normally deal for rise far
outnumber those who sell short, those
who seek to realize on profits and those
who are easily stampeded combined
The breadth of trading at this time
would seem to indicate marked invest
ment and speculative acquisitiveness
this implies the sort of prosperity which
means money in hand and this, in turn
calls attention.to a curious phenomenon
which has to do with rising rates fol
money accommodation.
1t is natural to suppose that il
person has to borrow money he will
want to borrow it at minimum in
terest rate. That is true in general O
course, but it does not seem to be tru,
always where the stock market is con,
cerned. Brokers borrowing call none!
often find themselves in a position II
which the main consideration is to ge
the money. They are Indifferent t.
the rate exacted at least they are no
conscious that the rate matters at all
Such has been the case more or less sine
the turning period in October financing
1t was expected that money rate
would drop after October /, becaus
arrangements for the heavy autumn
rnH1 Irnr ,py,tc ln,, Iaa
completed. But they did not drop
Last Wednesday the renewal rate a
o per cent was the highest in five year
and loans on several days of the wee
were placed at 10 and II per cent
at no time since Monday was call none,
loaned at less than per cent.
This situation puzzled the rank an,
file of Wall street, but it did no
puzzle the bankers. The stock marke
money rate is not an accurate baromete
of money conditions. 1t does not refec
tightness of money supply necessarily
Bankers state that money has, per
now throughout the country. One banke
asserted that the commercial borrow
ing rate has softened but the assertion
did not belle the fact that the credi
structure of the United States is grow,
ing. 1t is the business of the bank
to take heed of forecast conditions
They are doing so now and cannot
therefore, be expected to throw unlim
tied sums into the stock market at
time when that market is displayin
every symptom of expansion. Call loan
even at 10 and IL per cent have thei
limitations of attractiveness and bank
usually limit the sums set aside fo
the accommodation of the market. TIL
breadth of trading in stocks has ap
parently created demand which ha
approximated that limit. The norma
influx of money from the interior whe
rates are high here has not materialize
because of crop moving and other re
quirements and considerations whic
have to do with the increasing credi
structure.