The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-21
FINANCIAL NEWS
AND COMMENT
Awaiting Outcome of the
Steel Conference, Trading
in Stocks Contracts.
ALL TRACTION ISSUES OFF
Sterling Exchange Breaks on
British Orders to Suspend
Purchases Of Bills.
ALL TRACTION ISSUES OFF

Wall Street yesterday went through
another day OF waiting for the outcome
OF the steel conference in Washington
and the stock market gave evidence
| OF this by a further contraction in
business. The dealings were the small
est in fact for more than two weeks,
4 and In the afternoon the market showed
clearly indications of weakening under
the strain OF the combination of unfa-
vorable circumstances which have been
hanging over the financial community
for the last week No definite news as
to what may be expected from the con-
ference had reached the brokerage dis
| trict up to the close of business, but
enough was known in an unofficial way
to proceed on the theory that steel
prices are due for a rather severe cut
within the next few days. The market
again bore the test of much hammering
by the professional traders remarkably
well, but at the same time IL was
| plainly evident that there was much
less uneasiness among the short inter-
est and also that the shorts again were
| assuming a moro confident position in
| the dealings,
The market also undoubtedly received
further impetus in its decline In the last
hour by the fresh outbreak Of selling In
the traction shares But why the mar
ket should weaken under the prospect OF
| lower steel prices was not apparent
| This has been the one development
which Wall Street has been awaiting
several weeks as the first definite indi-
cation OF revival of business, and II
| goes without saying that so long as steel
prices are maintained at present levels
the resumption OF activity on a large
| scale cannot be begun. 1t may mean OF
course somewhat lower earnings for the
/ time being. but II the demand is as
| important as 1t is expected to be the
steel industry undoubtedly soon will see
An advancing steel market, regardless of
what reduction Is made in prices now
All OF this was overlooked by traders
yesterday. and It was not surprising. for
1t has been plainly apparent for some
| time that the upward movement Of Stock
| Exchange prices had about run its
course in most important directions.
| There are still some stocks in which
| the expected revival OF business has not
been reflected, but 80 far as the general
list IN concerned It is now the opinion
in conservative circles that the market
has advanced all that 1t Is entitled TO
under existing circumstances.
With attention largely centred in the
| steel situation IL was not to be expected
| that Wall Street would pay much atten-
ton to the rising money rates, although
| that consideration was still a continuing
influence upon the trading. The general
list, while it still held fairly we'll under
| the circumstances showed clearly ind!-
cations OF weakening. that is to say those
shares especially in which the advances
have assumed considerable proportions.
| There were fairly general losses all
| along the line In the standard shares. in
! the higher priced specialties and in the
coppers. although nearly all Of those
stocks recovered somewhat IN the last
parb H..
the days trading were the fractions On
a report that a receivership Is being
planned for both marlborough Consoli-
dated and New York Railways all Of the
| traction stocks and bonds went lower
| The railroad department naturally felt
the effects OF the cutting of expenses by
the Railroad Administration. There were
a few firm spots among the industrial
shares of the type OF Corn Products and
other food stocks, but the general mar
ket was weak and the closing showed an
| extensive array Of net declines
| But the real sensation of the day was
| In the foreign exchange market rather
| than In the stock market. 1t was an an
nouncement that the British Government
had instructed its representatives. here to
| suspend purchases of sterling bills in
this market. This meant in short that
the sterling market went unsupported for
the first time since 1916, and the result
, naturally was a sharp break In the late
| afternoon the quotation went to 40 for
demand and AL for cables, q net de-
cline OF more than points for the day
Just what the significance of that step
VIII be Is highly conjecturaI. but one
thing seems certain. that IL the rate Is
| allowed to remain long at so large a dis
count 1t will act undoubtedly as a re-
straint In the matter of exports from
this and other countries to Great Britain.
On the other hand IL is a move toward
normal trade relation. and this fact
should not be overlooked in taking stock
OF the possibilities, nor should the fact
that 1t may be part of a plan which the
Peace Conference has under considera-
ton be overlooked