The sun., 1919-07-09
FINANCIAL NEWS
AND COMMENT
Market Continues to Move Up
in Spite Of II Per Cent.
Call Money.
TRADING rs LESS ACTIVE
Individual Issues, Specialties
and Rails Included In tho
Forward Movement,
TRADING Is LESS ACTIVE

Tho stock market had to face yester-
day the most important test Of it's
underlying position which it has expert
enced since the new rising movement
began last week. With call money
loaning as high as II per cent with
the demand for funds again greatly In
excess Of the actual supply. the market
made another forward squirt, which was
even broader and moro enthusiastic
than heretofore There were periods OF
hesitation when the absorptive capacity
OF the market was Temporarily overtaxed
by a combination Of professional selling
ana proht taking as a result OF the high
money rates, but on the whole the tend
tncy seemed to be to continue the move
ment regardless of whether call money
was loaning at per cent or II. Trad
ing was not quite SO active as on the
preceding day; for the reason that thers
were no such sinking spells al were
witnessed in the last hour Of that days
session. but notwithstanding this the
market was more active than might
have been expected under tho cirourn-
stances and. what is morn, the strength
was OF q character that made the deal
inE especially impressive.
Whatever the reason for the high
money rates, the days market demon
strated at least one thing and that was
that the speculative element had no
further fear of the money situation. II
Ia still persisted IA banking circles that
the present furry Is perfectly normal
and nothing more than might have been
expected In view Of the unfavorable
showing made by last Saturdays bank
statement. but to experienced observers
Il ~ perfectly obvious that what 10 hap
pening In the money market Is nothing
more than deliberate attempt on the
part Of the banks to check the in
creasing wave of public participation.
Whether this Is justified under the pres
ent conditions Of unprecedented pros
perity, whether It should be done 30
long as underlying factors arc 80 I'M
mistakabiy bullish are questions which
are being very seriously discussed In all
quarters. But whatever the answer the
attempt which was made yesterday
made no impression at all upon the
speculative public. Not only was tho
speculation on as great O scale as ever.
but there were no Indications of any let
up at the closing Notwithstanding the
fact. that the rate Of call money was
lacked up to the highest point Of the
day IN the last hour. This created tho
Impression that there might be another
furry again to-day. but Il had no effect
on the buying power. The only things
that counted in this respect was the
fact that another bullish crop report
will be issued to-day: that tomorrow
the Steel Corporation IL expected to
publish its first monthly tonnage stats-
ment showing an increase in unified
orders since the armistics was signed.
and last but not least, that business 10
going ahead as usual.
Perhaps the thing that made tho
strength of yesterdays market most i'm
pres sive aside from tho continued buying
Of stocks in face of the money situation
was the fact that the movement en-
braced practically the whole list Here
tofore the principal part Of tho specula-
ton has been devoted to certain special
ties Individual stocks. &C, whereas yes
terday the movement took In not only all
OF these issues but also the rails. THIS
was the most important feature of the
trading. for II was these issues which
gave the market its character. The most
pronounced gains. however. were still
recorded In the spocialties, such as
Chandler Motors, the tobacco stocks.
some of the oils. the shipping shares and
others but nevertheless tho steels oocu-
pied q prominent place in the dealings,
as did the coppers motors, and especially
the lower priced rails. about which much
has been said concerning the possibilities
of important oil strikes on some Of their
great deal OF profit taking IN tho last
hour by those who did not caro- to take
chances with the profits overnight. but
all of this selling was readily absorbed
In the course of the trading. but tho
closing was the strongest period Of the
day.
There was a great difference OF opin-
ion in banking circles as to what can be
expected OF the money market to-day.
In some quarters It was thought that the
high rates for money for two days In
succession would have the effect of
bringing a large supply Of funds into
the market from out Of town sources. but
on the o Their hand II waa the opinion OF
the greater number OF bankers that
the furry would continue again for
the greater part Of to-days session. The
foreign exchange market was weak
again, with sterling making another new
low record. representing a decline OF
nearly 30 cents from the ngure at which
1t was pcgged prior to the time that the