The sun., 1919-05-16
FINANCIAL NEWS
I AND COMMENT
Stocks React Moderately, but
Activity Is Kept Up to
Recent Average.
PROFIT TAKING IN sTEELs
Heavy Buying Of Local Trac-
ton and Equipment Shares
Is Feature Of Session.

Trading in the stock market, while
continuing on a fairly lively scale, was
moro orderly throughout the best part
OF yesterdays session. The scale OF
activity was we'll maintained on the aver.
age OF recent sessions, but tho general
list, with very few exceptions, had a re.
dictionary aspect from start to finish
The setback was only moderate, how
ever, in proportion to the advance which
has taken place in the main speculative
position and no more than might have
been expected on what Wall Street calls
technical grounds alone. There were
several individual groups Of stocks, sucsl
as the local fractions and the equip
mcnt shares. which were bid I'D quite
eagerly at various times. But the main
tendency was toward reaction and
traders were able to make considers Bile
progress In this direction in the standard
shares In the last few minutes OF the
session. But in 30 far as the general
market was concerned no real evidence
OF serious weakness developed anywhere
This was rather remarkable considering
the flrmness of the money market and
the great expansion in activity.
Obviously the advance in the money
market was more the accidental rather
than the real reason for the declines
The market had become overbought ir
the enthusiastic public participation OF
the last few days and a reaction had
been long past due. At any rate, there
WIS no real reason for alarm over the
money situation. 1t goes without say.
ing that ff such speculation as was car
ried on during the recent Government
loan campaign could be financed with.
out difficulty, there Is no good reason fol-
financial stringency in tho stock mar
ket at the present time. What is takinJ
place In the money market ia merely 9
reflection of the preparation for the pay
ment Of the second instalment on tn,
Victory Loan. This payment is du,
next Tuesday and II the payment Il
| anything like those in all Of the ore
ceding loans approximately 20 per cent
OF the entire proceeds will be paid [,
the Government on that day. This will
| necessarily entail considerable strain OF
the resources of the local institution,
| inasmuch as not only will New York in
situations be called upon TO finance tn
payment OF the Second Federal Resery
district but there will undoubtedly b.
some withdrawal of funds from thi
quarter on the part OF out of town in
stitutions. All of this, of course, mean
|
1t does not mean necessarily that tn
banks are attempting to clamp the II,
on speculation, as has been said in som
quarters.
The outstanding features Of yester
days trading, in 80 far as the indi
vidual price movements were con
cerned. were the local traction share
and the equipments There was par
ticularly heavy buying again In all O
these Issues throughout the session an
nearly all of the marlborough Metro
politan issues as we'll as Brookiy
Rapid Transit ended the day with
substantial improvement. The stee
shares were generally under heav
! roht taking. from the outset on. although
thnse issues again recorded new high
| for the current movement at the open
ing The strength was not maintained
however. for any length OF time an
thereafter interest shifted to the trac
| lions and equipments. Baldwin wa
the leader OF the equipments, but 1t
| course was very erratic. The stoc
was weak at the outset, then jumpe
to a new high record for the year q
the last hour, only to experience al
equally violent decline at the YER
| close. The railroad stocks were rathe
neglected and under profit taking frQr
| the advance of the two previous day,
but underneath the surface indication
continued to point to the same quie
accumulation which has been going o
in these issues all during the past tw
| or three weeks.
The money market was easier in tina
the rates for call money did not go I
| IN per cent. as at the close on tn
preceding day.
| The break in the foreign exchang
market continued, involving for the frs
time. in 80 far as the current move
| ment Is Concerned, sterling.