The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-06
FINANCIAL NEWS
AND COMMENT
Reaction Continues in Stock
Market Throughout the
Days Trading.
APPREHENSION Is LESS
Standard Industrials Weak
ness Emphasizes Downward
Tendency Of Stocks.
APPREHENSION Is LESS

There was n great deal less apprehen-
sion in Wall Street yesterday as to the
innediate effect of the failure OF Con-
gress to provide the Railroad Admins
tration with additional funds. but the
situation, nevertheless. was q continuing
Influence on the trading. The reaction
continued in the greater part of the
market throughout the day. and the
downward tendency was more strongly
emphasized because Of the weakness Of
some OF the standard industriais that
had held up well on the preceding day
In face OF the unfavorabie news devel-
opments. This showed that, while the
situation may not have any great inffu-
ence on the market In the long run, II
had upset, temporarily at least. the plans
OF the bull leaders for q continuation of
the movement, and that It had again
tempted professional traders TO renew
contracts on the short side OF the mar
ket. But 1t did not appear as though
the speculative element had been sue
cessful in bringing out any real liquida-
ton.
Second consideration OF the railroad
problem revealed no change in opinion
as to the SERIOUSNESS of the situation.
But the statement of the Director-Gen
eral as to the proba bility of working out
some satisfactory solution had the effect
Of disstpating much OF the fear ex-
possibility of the immediate return of
the railroads. What this plan will be no
one in Wall Street would say yesterday,
but 1t was generally agreed that much
of the fear that had been expressed on
the preceding day had been wholly un-
warranted For one thing the Director
General made II plain in ms statement
that there would be no immediate return
of the roads, which was the one thing
which Wall Street had feared most.
Secondly. 1t was also made clear that
some sort of financial arrangement
would be made whereby the roads would
be tided over until Congress has had a
chance to provide additional funds. But
all OF this, OF course, will mean curtail-
ment Of expenditures. especially as re-
CARDS new equipment, and the effect
undoubtedly will be felt not only by the
roads themselves, but by tho steel,
equipment and allied industries. This
was the feature OF the situation which
worried Wall Street more than the solu-
ton OF the railroad problem itself. for
1t had been counting upon this business
for start in the long expected indus
trial revival
Whatever the effect in the future IL was
apparent in the market yesterday that
the situation was holding up plans for a
continuation of the movement which
has been under way for the last two
weeks. There was further recovery
from the low of the preceding day at
gressed II became clear that the buying
power had diminished, and that the pro-
fessonal traders were again becoming
active on the selling side OF the market
This was the more apparent. however. in
the steel shares than II was In the rails,
although both departments showed de-
clines at the closing. But it was in the
Of in ha In M
pressure was felt. The equipments nat
urally reacted with the rails ana steels.
and some of the higher priced special.
ties also felt the influence OF increased
profit taking and professional selling.
Weakness In coppers again reflected the
uncertainty as to the dividend meetings
in the latter part of the week. Bethle-
hem was a strong point in the trading
and so was United Cigar Stores. which
seemed to have lost none Of it's favor in
spite OF the movement elsewhere.
The money market was easier. This
reflected the cessation OF demand for
money on account OF the reaction in the
market At any rate call funds were In
better supply than at any other time for
more than a week, and the rate was also
the lowest since the big upward swing
began last month. In the foreign ex-
change market weakness in francs con-
tinued to be the outstanding feature.
Swiss rates were firmer, otherwise the
market was about unchanged from the
preceding days closing. The bond mar
ket was quieter, with prices holding
fairly we'll throughout the day. The
cotton exchanges were closed during the
day owing TO the lack OF knowledge as
to the character of contracts for future
deliveries of cotton TO be traded in I'M
der the new law, which went into effect
with the signing OF the bill amending
the Lever cotton future act by Presi-
dent Wilson on Tuesday.