The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-02
FINANCIAL NEWS
AND COMMENT
Stock Market Continues to Be
Apathetic and Trading Is
More Contracted.
INTEREST IN sPECIALTIEs
Bank Statement Shows Gain
In Excess Reserve Of Close
to S19,000,000.

Apathetic conditions which prevailed
throughout the share list for the greater
part OF the week continued as the dis
tingulshlng feature OF yesterdays stock
market session Trading was greatly
contracted from the preceding days
volume, and accordingly constituted the
smallest aggregate Of transactions that
have been turned over even for a Satur-
day session for period OF several
months back. The reactionary tendency
which made Its appearance at the close
on Friday made some further progress
! at the outset, but on the whole the I'M
dertone was firm. although no definite
, trend was in evidence in either direc-
ton. Undoubtedly evening UP trans
actions by traders who make 1t rule
, never to carry stocks over a holiday
! made up the largest part OF the days
business, for although the range was a
trhe lower at the closing. no important
pressure appeared In any part OF the
list. except in the individual shares. in
which profit taking was the rule.
Under the circumstances. therefore
the market az a whole was a rather I'M
important affair so far as indicating
anything as to the future. There was
no news upon which movement could
be based and even II there had been IL
is doubtful Il traders would have taken
advantage Of Il. The Warfeld plan for
the solution OF the railroad difficulties
continued to occupy much attention, but
this particular factor was greatly over
Swallowed by the more important prob
lens involved in the price readjustment,
which is now regarded as well under
way. The fact Of the matter is that the
whole market now hinges entirely upon
this readjustment. Indeed, IL It could
be determined definitely that the wheat
situation was any nearer solution than
II appears to be on the surface of things
he market situation Undoubtedly would
present a very much different aspect
than 1t does at the present time. This
is regarded as the key TO the whole re-
adjustment problem. and x prices OF this
particular commodity could be once
started IN a lower direction. 1t Is con-
sidered as certain that the prices OF
steel. copper and labor would follow
SUIT almost immed aTely. With this
problem out OF the way the I.est would
probably be easy.
In the absence OF any such indca-
ton. the market continued merely to re-
fleet the price uncertainty which has
been characteristic OF all sessions last
week, No definite trend was in evil
dence either in the standard list or
railroad shares, nor IS Il expected so
long as current problems remain so
confused. The only really important
movement In fact was in the specially
shares, In which incentive for move
ments was found in the days news de-
velopments. Ohio Cities Gas. tor in
stance, sold off rather easily following
the announcement OF the company's In
tention to Increase Its capital. while
New York Air Brake continued to re-
feet the uncertainties with respec, TO
the maintenance OF the dividend al
current rates. The individual issues
which have occupied large part OF
Wall Streets attention recently closed
lower on profit taking. In the standard
list the range OF prices was uninnor-
tInt Steel common and the independent
ndustrials moved within a narrow
range. While the change here was
fract!onally lower, the decline was not
considered as rejecting anything OF
Importance in either direction.
The bank statement disclosed an IN
crease Of excess reserve o! approx
mately $4,000 900. which was accounted
for partly BY a decrease In demand
deposits OF s43 100000. and partly by
an increase IN cash reserve with the Fed
e-al Reserve Bank OF New York OF about
$4,000 900. Loans decreased about So
COO, 900 in spite OF the removal Of money
restrictions, while Government deposits
increased sl26.000.000 This reflected
the payment OF the last !nstalment On
the Fourth Liberty Loan. The foreign
exchange market was quiet and without
special feature Neutral rates continued
their weakness. This was particuli\ Y
true OF Swiss francs. which have been
moving IN lower direction for several
days past On the other hand, Spanish
pesetas again displayed a Arm under
tone. improving slightly on the preceding
days closing.