The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-06
FINANCIAL NEWS J
AND COMMENT
Recovery and Reaction Alter
nate in Irregular and
Active Market.
LIQUIDATION AT OPENING
Volume Of Trading Is Heavy in
Early Stages--Wire Trou-
BILE Is Later Factor.

Recoveries alternated yesterday with
reactions in the market of irresularity
an6 activity In the New York Stock Elk
change. but the preponderating move
ment Of prices would havs been DOWN
ward had there not been an outbreak
Of wire trouble between New York and
the West. Az II was. selling orders OF
considerable Importance reached local
brokers' offices after the closing. On
the whole the market steadied after a
weak opAning and a half hour Of DOM
inathg sales. during which the lowest
prices OF the day were reached. Then
there was sharp recovery around mid
day following the dissemination of ru-
mors to the effect that the Government
wouh increase freight rates around 20
per cent. Confirmation OF the report
WIS not obtainable and, therefore, the
market sagged generally in the last
hour. On the whole the net changes
for the day were unimportant except
In the case OF active and high class
rails, which were consistently weak. but
there was little comfort for the bulls
outside Of the scale and investment buy
ing. which appeared at the low points
OF the day. Those who were short OF
stocks saw little reason to cover more
than a minor portion Of their position,
and LIQUIDATION or the conversion Of
what was left of paper profits into cash
was in evidence during more than one
of the i've hours OF trading.
Considering the extent Of Mondays
break. the recovertes even at the best
points Of the day were only moderate
and they gave little indication of possi-
bility OF an immediate resumption Of the
upward trend. On the other hand. over
night confederation OF the demand Of
labor unions for naturalization of the
railways may have brought an apprecia-
ton Of the absurdity Of the ultimatum.
but It did not dismiss the strike threat
and Il should not minimise the power
of the railway unions in any attack on
private ownership of the agencies OF
land transportation Possibly the lead
ers wish to placate the radicals In the
membership Of the unions. but railway
labor has seen how easy It is to get
wage increases and other considerations
from a political body and naturally an
ticipates better selfish results from Gov
eminent ownership than from negotia-
tons with private interests. On one side
is the rank and file Of the we'll or
ganixed railway brotherhoods. On the
other is the more or less inarticulate
majority which wishes continuation of
private ownershop, but calls the union
position absurd" and continues to re-
main inarticulate.
The volume of trading was on a parity
with Mondays great activity. with the
early trading much larger and the later
trading dwindling on account of the wire
trouble during the last two hours. In
the more active issues net gains of a
point or more were shown by American
Wooden, Baldwin Locomotive, Crucible
Steel. General Cigar. General Motors,
Marine common. Pan American Petro-
ieun. Saxon Motors. United Retail Stores
and United Cigar StoreA But tho bal
ance of the active list merely held its
own or lost further ground. the larges,
net losses being shown by Texas Com
pany. United States Food Products,
Union and Southern Pacific. American
Locomotive and American International
Corporation.
That there is no real Improvement in
the supply OF credit for Stock Exchange
purposes was indicated by the rise in call
money rates to 7 per cent. on all indus
trial collateral and by the absence of
Tins loans. OF course, the liquidation
has lessened the request for call money.
but the credit supply and demand Is
likely TO spring into prominence again
at any time. The feature of the foreign
exchange market was a violent move
ment against Paris, at one time the rate
requiring 7.55 francs for a dollar. a de-
probation of more than 80 per cent in
the French franc compared with parity.
The decline was in large part due to
heavy speculation in French exchange.
Sterling also was a little weaker. Ger
man exchange recovered a trihe. but
the rate on Copenhagen fell to the
new low record of 21.90 cents a
crown, against a parity of ass. Lire
and Belgian francs also were weak.
Corn and oats were firm. but cotton
moved irregularly. dropping 81 a bale in
the early trading. recovering IS a bale
and then easing Off again.