The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-07
FINANCIAL NEWS
AND COMMENT
Contraction of Dealings Still
Continues While Prices
Sag Irregularly.
PROFIT TAKING GOES ON
General Situation Practically
Is Observation-Disclosures
UndcrtOne Strong.
PROFIT TAKING GOES ON

In the absence Of anything that might
have been expected to stimulate inter
est in the stock market Wall Street yes
terday confined its attention chiefly to
the individual specialtIes and the pool
stocks. Dealings continued the process
OF contraction which has been under way
of late both as to the volume OF bust
ness ana The breadth Of the trading, and
the general drift of prices was irregu-
larly downward, although no particular
significance attached itself TO the general
tendencies For the most part the lower
range OF quotations in the standard
shares represented a continued ABSORB
ton of profits accruing on the long side
OF the market in stocks that the latest
bulge in prices made too profitable to
carry any longer, and therefore the rest
Of the declines probably reflected a mis-
cellaneous assortment Of commission
house selling on the part OF disappointed
traders who had expected further and
more pronounced rally in prices.
The fact that last weeks rally wa
not carried further except In certain
specialties was due mainly to the lack of
interest in the dealings, however, rather
than to any new group Of factors to eff
feet the trading. on the contrary the
general market situation remained pre-
osely as IL has all along. There was
continued discussion first as to the money
| situation, secondly over the industrial
| outlook and readjustment. and thirdly
| over whether the rally already had been
| carried as far as conditions warranted
! under present circumstances. That there
| is still a substantial short interest in the
| market goes without saying, but on the
| other hand there does not seem to be
| any great disposition in speculative cir
| Cles to bring about a situation which
would force this interest to cover. How
| ever that may be. there has been no
| change in sentiment on the part of those
who have been expecting q further re-
| coyery in prices. But the course which
| listed securities pursued during the day
| showed plainly that Wall street had
| been perhaps a little too hasty in it's
| opinion as TO complete rally in tie
market while so much uncertainty con-
| tinues to surround the steel and copper
price situation. and other consider1
| tions with which the speculative COM
! munity now IS engaged.
DESPITE the tendencies toward inactiv-
| ity the market was not altogether with
cut feature. This was provided by II
further turn of strength in the indus
| trial specialties such as Distilleries. Mex
| lcan Petroleum. American Linseed the
Barrett Company and the tobaccos, all
| If which displayed remarkable underly-
ing tirmness in face of the persistent
! heaviness elsewhere. SO far as the main
| at "a concerned. how
I ever there was unnistakable evidence
! of a return to the state of inactivity tina I
PREVAILED prior TO the selling movement
| during the last week of last year. Their
was no real selling. however: that is 10
( say so far as could be ascertained. APP
! Iarently the pressure represented further
rroft taking on one hand and on the
! other an effort on the part OF the pro
! fessionals to bring about whatever com
| mission house liquidatnG that may have
! been left over after the turn OF the year,
! Selling of that character made some i'm
| preston on few stocks. but on the
whole the market held up fairly well.
Tho money situation was improved, as
! was to be expected IN view of the com
| Teton OF the January l interest pay
| mentS and the hetterment in the reserve
POSITION OF the banks az shown in last
| SATURDAYS bank statement. CAN money
/ loaned AS low as to ii3 per cent. for
J the first time in more than week, and
there appeared to be A larger supply OF
= tine money available for speculativ,
purposes, although the demand remained
| unchanged. The foreign exchange mar
ket was elsier. but rates as general
rule were not greatly changed from last
/ week closing figures The bond mar
ket was quiet, but there was hrn
undertone to foreign government issues
Liberty bonds were steady and moi
greatly changed from last weeks fin
prices.