The sun., 1919-08-12
FINANCIAL NEWS
AND COMMENT
Active Stocks Close With
Fractional Losses After
EARLY Strength.
PURE TRADING MARKET
Waiting Attitude in Dealings
Is Welcomed by Bankers
and Brokers.

After period OF early strength and
generally strong opening the market
In the New York Stock Exchange turned
reactionary yesterday, the active stocks
with a few exceptions showing small
net losses for the day The volume of
trading was restricted to fewer than
100000 Shares. As soon as the week.
enc accumulation Of orders was dis
posed or the bears found the demand
Tor stocks thin, and without any trace
OF excitement prices sagged from the
top points of the day.
American Car and Foundry particu-
larry and all OF the other equipment
stocks were In good request throughout
the session. On the other hand rela-
lively great weakness was displayed by
American Sumatra, Crucible Steel. Cana
dian Pacific, Studebalxer and Industrial
Alcohol. In general, however, the ac-
tive list closed within a fraction of
Saturdays final.
1t was a trading market pure and
simple, the only element Of pressure
being the report that the Government
would call on the banks to-day for a
large share of Federal deposits. While
there was no oversupply OF funds the
rise to per cent indicated that enough
money was on hand to meet the needs
OF the market despite the preparations
made by the banks for to-day's call.
Conditions to-day will be another story
and bankers are inclined to expect a
sharp but temporary advance in call
rates.
Trading last week averaged in excess
OF 100000 shares a day. the heaviest
weekly trading with the exception Of the
week Of June 2 since December, 1915.
The sudden relapse to much quieter con-
ditions yesterday was welcomed by all
interests.
Outside of the sale Of $4,000, 900 notes
by the American Cotton Oil Company to
bankers, who offer them on a 6.1S per
cent. basis. and the advance reports OF a
withdrawal of Government deposits the
days financial developments included the
opinion of the Federal Reserve Board
that any legislation providing for the
gradual reduction OF currency in the
United States at this time would be I'M
wise and that the remedy for the pres
ent unrest and imitation is to work and
to save; to work regularly and eff
ciently in order to produce and distribute
the largest possible volume of commodi-
tics and to exercise reasonable economies
in order that money, goods and service
may be devoted primarily to the liquida-
ton of debt and to the satisfaction OF
the demand for necessities.
That the advice of the reserve board
Is not wholly " iapoi 70 ihoi~
Gated by the continuance Of unrest as
market factor.
Under the circumstances of national
uncertainty regarding the practical So
luton Of the high cost of living and labor
problem and of a relatively restricted
supply of credit for Stock Exchange pur-
poses bankers and brokers alike express
the hope that the waiting attitude ex-
hibited yesterday continues at least for
the rest of this month. That does not
mean that stocks should not be pur-
chased for investment on any sudden
break or could not be sold to advantages
on any material rally; It means merely
that speculative activity should be held
in check until the whole situation clears.
The strength and activity In American
Car and Foundry has been explained by
the proposition to increase the dividend
from 8 to IL per cent. per annum, and
the evidences of prosperity for this COM
many brought investment buying to the
other classes of equipments
Strange to say, the steels were not
helped by the favorable untitled tonnage
| statement published after the close last
Saturday. There was no definite devel-
opment to account for the sagging ten
| dency in Canadian Pacific rail stocks.
| On the whole yesterdays market lacked
both trend and significance.
There was no feature in time money
and call money loaned at per cent al
day for mixed collateral and 61a pei
cent. and per cent. for all industrial
Trading in the foreign exchange market
| was unimportant