The sun., 1919-10-22
FINANCIAL NEWS
AND COMMENT
After Early Rise Considerable
Selling Causes Declines
From Days Highs.
MARKET HOLDS UP WELL
Setback Affects Steel and the
Motors Chiefly, While Oils
Come to Front.
MARKET HOLDS UP WELL

The upward movement on the stock
Exchange was continued on a very en-
thusiastio scale for the first half of yes
terday's session. In the last half of the
day, however, the market met stock
rather freely, and prices. with a few ex-
ceptions, sold off from the high of the
day. There was no evidence Of liquida--
ton. 1t was simply a question Of tech
meal conditions and assto how 'long the
cashing in OF speculative profits would
be continued before booming outweighed
by new buying power, which apparently
stands ready to come into the market
on every dip in prices. The market. not
withstanding the selling, stood up very
well under the test. Steel common and
the motor stocks had a very substantial
setback, but nothing like the advance
which has occurred in the last few days.
In other directions the market held well.
and while these recent leaders were
reacting new favorites came to the front
IN the form CT the oil shares, which made
| a very substantial advance right at the
closing.
That the whole thing was due to tech
meal considerations was very clearly
demonstrated at the closing by the man
ner in which new issues came forward
| At any rate there was no reason, SO ran
as the news was concerned, why fresh
selling should be INDUCED in. The fur
Their details which came to light regard
| ing the steel situation were precisely In
line with what Wall Street has expected
and there WIS no reason for any alarm
over the money situation. The Street
realized, in the first place, that 1t was
very necessary to keep money rates dowr
while the new british loan Is being
fioated, and in tn, second place, that II
this Is the case, II can hardly help bu
he reflected >favorsbly in the securities
market. This was the one outstanding
feature Of the day which inspired conn
dence otherwise the financial community
vas pretty we'll convinced that the mar
lket had reached point where substan
tial setback was necessary In order u
restore a balanced condition within thu
market itself. which has been growing
more lopsded each day on account o.
the tremendous speculation for ris'
which has been going on. particularly II
the speciality and motor stocks
The decline in the standard shares wa
quite sharp while It lasted 1t resulte'
in putting Steel common down from
above III to below 10, and the moto
stocks anywhere from ] to as much a
5 points. At this point, however. tn
market was steadied by the prominence
Of the oils, which were leading features
of the last few minutes of the session
| and the upward movement was resumed
although not enthusiastically. In I'M
oil group the most spectacular featur'
was Royal Dutch, but this was by N
means the only oil stock included In tn
movement. 1t spread very rapidly onc'
+, it was seen that the edge was on tn
| speculation In the motors. and in thu
| final period Of trading included Sinclair
which has been one of the few issues Il
be neglected in the recent upward move
lment The motors stocks. however. were
particularly hard hit in the profit taking
and of this group the most pronounces
decline probably took place In Pierce
Arrow, Next to the motors the 'steel
experienced the most severe break.
The money market was easy all day
as might have been expected. 1t ha!
been the experience of the financial com
munity that whenever the marketing o.
a large loan is under way 1t Is al
most a necessity for bankers to keel
money fairly easy. This is not mean
as any encouragement to speculation. bu
nevertheless always affects the market
The floating of the loan itself Came al
considerable of a surprise to Wall Street
While 1t has been known that negotia
tons were under way, it was general!
understood that no real progress woult
be made until after the turn of the year
The most favorable influence of the LOAF
announcement. however, was not in thu
money market. but in the foreign ex
change market Sterling had a very
sharp advance and the Improvement her
naturally had n sympathetic effect on tn
whole exchange list. which was Yer!
| strong