The sun., 1919-07-29
FINANCIAL NEWS
AND COMMENT
For First Time Since June 20
Less Than 100000
Shares Traded.
MARKET FIRM AT CLOSE
Price Movements Are Spotty
and Trading Is Largely Of
Professional Sort.
MARKET FIRM AT CLOSE

For the 'srst time in moro than
York Stock Exchange was less than
million shares. the reduction in spec
ulative activity affording satisfaction to
those who feared that excessive specula-
ton would hinder the extension Of for
cign credits so much needed to enable
the further development of foreign trade,
by the United States. Price movements
were spotty. trading was professional to
a very large extent and at times there
was q lack Of animation, but the closing
was Arm. The business was the smallest
Of any five hour day since June Q, and
barring two days in the closing week or
June yesterday was the first day since
April II during which the volume fell
below 100000 shares.
The relapse to relative inactivity was
due in part to a desire to await the divi-
dend action on United States Steel COM
mon. which will be announced after to-
days closing, together with the earnings
statement for the second quarter Of the
current year, but rather more to the fact
that the financial situation as a whole no
longer permits the continuance OF the
recent scale of speculation on the con-
structive side. The fact Is that the sup
ply and demand in the available credit
fund have now reached a point where the
diversion of floating capital from the
Stock Exchange has begun to increase In
momentum. Prolonged and excited spec
ulation of the last few weeks. not to say
months, has been based in part on un-
employed capital, but now the urgent
commercial demands of an active fall sea-
son are being anticipated by the lenders
hal rA
tending toward an irreducible minimum.
The accumulation Of orders over the
week end caused fractional advances
throughout the list at the opening, but
the first hour on the whole was period
of moderate reactions on desultory SELL
ing. Thereafter until shortly before the
close 1t was distinctly a speciality affair,
gains being recorded by such issues as
New York Dock, United Drug common,
Owens Bottle Machine, &C. In the late
trading Baldwin was a feature, selling
as high as 119%. up ~. The steels, IL
they did anything at all, merely held
their own and an attempt to revive
speculative enthusiasm in the rails failed.
Generally speaking the best that could
be said was that the market was In an
improved technical position and that 1t
held firm in the face of great inactfv-
ity. OF course there were advances In
stocks which are dominated by profess
sional pools. but the tone on the whole
was irregular. suggesting policy of
watchful waiting. Constructive factors
were not lacking. The letters to banks
and trust companies penned by Carter
Glass, Secretary of the Treasury. re-
moved considerable uncertainty regard
ng Treasury prospects ana stated
definitely >that there would be no net
increase In the public debt for the year
beyond the deferred instalments duo on
the last Victory Loan. There was an
in London that trade re-
strictions will not be drawn any tighter
between September 1 and January than
they are at present Senator Edges
banking bill, too, is to come before the
Senate for early consideration with
designed to meet some i'm
portant objections. But none OF these
factors was sufficient to give any zest
to price movements.
. Call money loaned at 8 per cent all
day. on mixed collateral, but all indus
trial money loaned as high as per cent
and there were reports that no time
money was available at less than per
cent. The sharp recovery in exchange
on London, Paris and Italy. with sterling
advancing 3 cents at one time, appeared
to be due partly to covering purchases
by those Who operated on the bearish
side last week and partly to buying from
commercial remitters who have been
waiting to see how low the foreign ex:
change market was likely to go. The
Icotton market was quiet and slightly
lower. Both corn and oats closed strong.