The sun., 1919-10-01
FINANCIAL NEWS
AND COMMENT
Prices of Stocks Continue to
Advance and Vigorous
Buying Appears.
PUBLIC REVIEWS INTEREST
Trading Indicates Turning Of
Attention to Rails, Par
ticularly Standards.
PUBLIC REVIEWS INTEREST

The same condition of affairs which
was responsible for the Improvement of
security values on Monday again yes
terday provided Wall Street with mo-
tive power for the continued advance of
prices. With reports coming into the
financial community telling of the grad
ual return of the steel workers the re-
straint which has characterized the mar
ket all during the past week or more
gave way to q vigorous buying move
ment which failed to be checked even
by the high money rates In the last
hour. What this indicated very clearly
was that the financial district had final
| ly broken away from the influence OF
| the steel strike, and. what Is more, that
not only has professional Wall Street be-
gun to realize the hopelessness Of the
labor leaders position, but that the
public is demonstrating its confidence In
| stock market values by entering into the
| market again on an Important scale.
At least this was the opinion of impor-
tant commission houses after the closing.
Actually there was very little change
| in the steel strike SO far as the news
was concerned. But Wall Street has
not been following the news side of 1t
since the strike began anyway. What
| has impressed the trading community
most and what undoubtedly was most
responsible for the sudden outburst OF
strength yesterday was the continued up
ward movement OF prices In the face OF
news which ordinarily might have been
expected to have restrained speculation
at least No less remarkable was the
| failure of high money rates In the after
| noon to cause any general selling move
! ment. This was due no doubt to the re-
| alization in the financial community that
| the present furry in money Is nothing
| more than a temporary affair. predicated
| for the most part on the continued Gov
| eminent Withdrawals from this district.
| II II had happened some time ago when
| Wall Street was in the midst OF the
/ previous big upward swing, with brokers'
loans nearing the top figure OF the year,
| ii would undoubtedly have been taken
as a warning of the application OF the
brakes by the banking fraternity. But
| inasmuch as the present condition OF
| affairs is only temporary and inasmuch
as the money now being used In moving
| the crops will shortly be flowing back
4 into the Wall Street district, no great
Significance is being attached to the nur-
ries at the present time.
Aside from the tremendous advances
| which were scored by such stocks as
Mexican Petroleum. Crucible and Bald
| win, the thing which attracted more at
tention than anything else in yester-
L
| in the railroad, shares, particularly the
standard issues of the type of Reading
and Southern Pacific. The activity of
| this group was based on the improved
outlook for railroad legislation and also
| in large part on the advance informa-
1 ton that an important Senator Will
/ shortly deliver an address advocating
a 25 per cent. advance in freight rates.
Steel common was again very active
/ feature; likewise so were most or the
| independent steels, which recently have
Jagged behind the rest of the group,
American Can continued its advance,
reaching a new high level for all time.
although reacting later on profit taking
and the tobaccos were also very strong
| again. American Tobacco went to an
other new high record in response to
expectation that the announcement or
the new company which Will take II
| over would be made shortly. Special
ties attracted a good deal OF attention,
but were not so active as earlier in the
week.
The high, rate for money! yesterday
was 10 per cent, compared with is per
cent. on the preceding day. but 1t failed
to attract as much attention as did the
furry at the closing on. Monday, pri-
mariIy for the reason that II was well
known yesterday that the present condi-
ton of affairs was only temporary.
Large Withdrawals of money continued
again yesterday, but 1t is now under
stood that these have been pretty well
completed. At any rate 1t is not an
ticipated that much further difficulty
will be experienced in the money market
unless. of course, the present security
market should get out of hand again.
Pronounced weakness again character
ICED the foreign exchange markets
sterling getting down at one time as
low as 417A and compared with the
high of APT toward the end of last
week. Francs were also weaker and
so were lire. but toward the closing a
rally set in which resulted in substan-
tial recoveries all the way around
There was no new explanation of the