The sun., 1919-01-05
FINANCIAL NEWS
AND COMMENT
Week End Sees Stock Market
Holding Strength Gath
cred Of Late.
ACTIVITY is MODERATE
Bank Statements Shows Gain
in Surplus Reserve Of
$18,70O,OOO.
ACTIVITY is MODERATE

Stocks rounded out the week showing
no impairment OF the strength which
they have been exhibiting. There was
some irreGularity during tho early deal
ings, but on the whole the tendency
| appeared to be to continue the ad-
vanclng movement which has been under
way lately. especially In the oils and
specialties. II there was any feeling OF
uneasiness over the proportions which
this speculation has reached 1t was
manifested in moderate activity rather
! than in the course of prices. The share
list itself presented a rather checkered
Az, earance. as was to be expected In
view of the usual week end evening up
processes and the desire of traders to
liquidate contracts that the latest squirt in
prices made too profitable to carry any
longer. But the general list was only
fractionally below the previous days
closing at the finish and new buying in
some Of the Individual shares and oil
stocks served to offset the heavy profit
taking that was plainly under way In
these departments.
In the absence of anything that might
| have been expected to stimulate activity
, in the standard list, professional Wall
Street paid very little attention to the
steels, rails and copper. except to take
profits. The absorbing capacity OF the
market however. was excellent, and In
no part of the market were the declines
carried to anything more than fractions.
On the other hand. there was no dis
position whatever to expect anything
more than a trading rally such as has
| been going on in the main speculative
! position for the past week or So All
of the considerations with which the
financial community has been engaged
remained precisely as they have been
right along. In a word, Wall Street
merely regards the present market situa-
ton as breathing spell In order to
| gauge the extent to which the readjust-
ment has been carried. Likewise it re-
CARDS the situation as a splendid oppor-
| tunity to place the market in more
balanced position. This obviously is
! the more important consideration OF the
two because in all quarters the market
| is regarded still as heavily oversold In
spite Of the substantial rally which q
good part of, the general list his ex-
per!enced within the past few days.
! The tobacco stocks. oils and lower
I priced rails were again the main centre
Of attraction and they seemed to have
! lost none Of the favor in spite of FRI.
| days sharp advances. United Cigar
! Stores made a new high for the current
! movement; Pierce OIL went higher
! American Ice was unusually strong
and American Beet Sugar made a
! further improvement from the previous
! days high figure. But in nearly all OF
the more active specialties heavy profit
/ taking set in at the closing and the i'm
: provement was not sustained very we'll
/ to tho losing. Tpc general list of
/ standard securities were. while display
ing a steady undertone. fractionally
, lower. especially the steels and minor
| Industries. A fresh stage Of decline was
entered into again by the fractions,
! which were weak all through the day.
With respect to these share selling was
( based on the failure of the Board of Es-
, innate to take steps favorable TO an in
crease in fares. Among the best in
! formed In Wall Street. however, a
! hopeful attitude that the new. Governor
( will do something to relieve the situa-
ton still Is maintained. There has been
! as yet no definite indication as to just
what form Il will take, but it is the
ground basis for most hopeful atti-
! Jude in conservative quarters as to the
( whole situa ton.
The weekly clearing house statement
disclosed an increase In surplus reserve
. OF SIS, 900, in face of a loan ex-
pansion of more than s116.000.000. The
; Improvement in the reserve position OF
the banks was accounted for in large
Part by the addition of SEA, 100000 10
reserve credits at the Federal Reserve
Bank of New York. The foreign ex-
change market was quiet and wthou,
! special feature. Rates were generally
firmer. however, Scandinavian rates re-
| covering about what they lost during
Fridays reaction. Liberty bonds were
quiet and steady and there was no par
,icular trend to the bond market in gen.
al