The sun., 1919-07-01
FINANCIAL NEWS
AND COMMENT
Uncertainty as to the Money
Situation Causes Stocks to
Be Irregular.
PRICE CHANGES SMALL
Several Specialties, Including
Food Stocks, Are Strong
Spots in Market.
PRICE CHANGES SMALL

Stocks were irregular yesterday, as
might have been expected. in view of
the uncertainty over money conditions
for the next few days There were no
very wide fluctuations in prices nor was
there any special selling pressure ex-
cept in individual descriptions, but In
itiative was entirely lacking just as It
was for the best part Of last week and
FOR the very same reasons While the
money market appears to have passed
through the worst of the stringency.
nevertheless there are several mora ses-
sions In the immediate future in which
there are likely to be some reflection
OF the heavy disbursement to be made
IN connection with the semi-annual
dividend payments and for this reason
as well as on account of the approach
ing triple holiday at the end Of the
week, the speculative fraternity appar-
emily was not DESTROYS of entering into
! any large commitments on either side
OF the market. Trading continued on
tairly lively scale, but was not as active
as on either Friday or Saturday Of last
week.
To those who had been expecting a
| continuation Of the easy money condi-
tons OF last Friday the sudden turn in
| the market yesterday must have been
surprising, especially In view OF the very
| favorable showing made by the bank
| statement last Saturday. But It was
PERFECTLY logical In the light of the facts
of the case. As was pointed out Satur-
day, the banks completed preparations
| for the July 1 dividend payments last
Wednesday and Thursday and. having
set aside sufficient funds to meet the
payments reloaned the money out on
call until X was needed, which was yes d.
| terday. This necessitated considerable
calling Of loans. The result was that
call money reached IL per cent in the
afternoon. but It was perfectly normal
and a development which should not
the speculative marketS Nevertheless
1t was effective in checking. for the
moment at least, the pool operations
which were under way on Saturday and
at the same time tended to chill what
ever public participation there may have
been in the market at the time.
But not all Of the market was weak
by any means. There were several
strong spots among the specialties such
as the food shares. American can was
in excellent demand and 30 were some
OF the copper shares. But tho motors.
particularly those which have been in
active demand lately. too were weak al
most from the outset Studebaker lost
rather sharply and 30 did General
Motors. but the selling was mostly pro-
fessional and 90 far as could be deter
mined no real traders were not sue
cessful in bringing out any substantial
amount OF long stock in any part OF the
list. The steels were strong at the outset.
but reacted later in the day along with
the specialties and motors, Steel COM
hRlnv
the previous days closing figures. In
the main, however. the market acted ex-
ceedingly well under the circumstances
and the tendency was to become quiet
whenever there was any large amount
of selling pressure. There was some
what of q rally toward the closing. but
1t was not very well sustained,
especially in the leading issues. 1t might
have been supposed that the railroad
shares would have tended to improve
in the afternoon following the announce
ment that the President had signed the
railroad deficiency bill. but nothing out
of the ordinary took place.
Money was firm all day. going as
high as IL per cent at the closing. AS
was explained above this was not sur
prising to those who have followed the
money situation and knew that there
would be considerable calling OF loans
to meet the July oNiuehu pap menus
Whether this condition will prevail again
to-day is not known, hut one thing IL
certain that the stringency in that mar
ket is very near over, for by tonight
most of the payments will have been
completed and the money Will have
started on its way back to the banks.
Most bankers were uncertain whether
enough OF these funds will have found
their way to the banks by Wednesday
to permit a return of money conditions
to normal, but all important banking
interests are certain that the situation
will be greatly improved by the first OF
next week. There was very little change
in the foreign exchange market Sterling
was a trihe firmer and francs slightly
lower, but aside from this most rates
closed not far removed from the satur-
days Anal.