The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-01
FINANCIAL NEWS
AND COMMENT
Less Selling to Establish Tax
Losses in Broad Market
on Stock Exchange.
SENTIMENT IS IMPROVING
Tendency Turns Toward High.
er Levels After Beginning
Of Trading.

There were two main influences behind
the recovery in prices on the Stock Ex-
change yesterday One was the absence
Of any large volume of selling in the
regular way for the purpose of establish
ing tax losses and the other was an I'M
provement in sentiment. which obviously
inspired the hope OF n more satisfactory
state OF affairs with the turn of the new
year. Another rather curious feature
of the trading was the almost unprece-
dented number of cash sales outside OF
the regular price range by those who had
been expecting last minute ruling from
the Treasury Department. When It was
not forthcoming yesterday those who had
neglected to record their losses were
forced to conclude the transactions the
be- way they could, which WAS for cash.
Ia gave the list highly confused APP
pearance for the first hour or so. but
after the initial trading the tendency be-
came decidedly toward higher levels.
The movement was, Of course. somewhat
OF an experiment.. but the trend Of things
was worth noting under the circum-
stances.
Still the various cross currents which
were created by the year end processes
both In the bond department and In the
stock list tended to complicate the days
trading. and undoubtedly prevented what
otherwise would have been a more COM
plete recovery of prices As II was
there was general upturn all around
and the days trading seemed to furnish
the hope in conservative circles OF a
more satisfactory market with the re-
sumption OF business tomorrow. But II
further recovery Is to take place It
will have to be accomplished with relax
alton OF money restrictions or any other
relaxation that would remove the re-
straints which have been holding specu-
lative operations in check. The market
yesterday was oversod greatly. however
and when II looked as though the selling
for the purpose OF establishing tax losses
had been about completed the whole list
turned strong. The action OF a number
OF railroad shares. which have been es-
pecially weak within the last few days
was particularly significant in demon
strating the changed feeling that exists
with respect to the immediate future OF
the market These shares stood on,
prominently in face Of their recent weak
ness
The outstanding feature OF the day
however. was provided by the spectacu-
lar movements in the oils shares In.
Guiding Mexican Petroleum and Roya
Dutch. in which there was genera
| running in Of the short interests Bu'
tney were Dy no means the only out
| standing features of the day Their,
was a general upturn in the steels
| equipments, higher priced rails special
ties and even the coppers. although tn,
improvement in that department wa.
confined to somewhat smaller proper
lions than elsewhere. A further an,
| even more satisfactory development wa:
| the Improvement In Government bonds
All of these issues opened higher. an,
! In the case Of the Fourth AVS. an ad
vance of more than . points from tn
previous days low was recorded at on
! time. There were several explanation
OF the sudden turn of strength in thes
issues, but the one which seemed TO hsv
| the most foundation was that the Gov
eminent pool had entered the marke
| for the purpose Of stabilizing the pr!r
of the bonds Whether or not that az
| sumption was correct the bond eXpe
rienced most satisfactory improve
ment. which was fairly well sustained 4
the closing.
There WAS no change in the money sit
! uation. Nor is any expected until afte
the turn of the year and the January
interest payments and other ftnancia
| transactions involved in the year end re
adjustments have been completed. Cal
money loaned on the stock Exchange a
from to 6's per cent. all day, and Their
was no change in time money rate
| from the preceding day. In the foreig,
! exchange market neutral rates wer
again disposed TO be weak. rejecting 4
in the cases OF the money the stock an
bond markets the usual year end process
such as evening up commitments. ~
Other rates were firm. but not great
changed from the preceding days clos
ing. The trading in stocks was slight!
siderably in excess OF the average o
| volumes