The sun., 1919-01-18
FINANCIAL NEWS
2 AND COMMENT
General Downward Course of
Stocks Largely Caused by
Professional Trading.
LARGE FRACTIONAL DROP
Profit Taking Encourages the
Disposition to View Future
With Pessimism.
LARGE FRACTIONAL DROP

Professional dealings in q dull market
werc chiefly responsible for the price
changes In yesterdays stock market,
which were mainly downward. Tho
dealings were on a somewhat larger
scale than on preceding days this week
and there seemed to be a disposition to
take a more unfavorable view Of the
market for the immediate future for
reasons which we're for the most part
technical. This was strengthened I'M
doubtedly by considerable profit taking
in stocks which have experienced sharp
advances recently and by a certain
amount of selling pressure which came
from one or two professionals. who for
various reasons were disposed to sell the
market from the outset. The pressure
lessened somewhat in the afternoon. but
the reactionary talk continued. and for
the greater part OF the session the price
movement was In keeping with expecta-
lions. The net result as revealed by the
statistical averages was a substantial
fractional decline.
For the rather abrupt change In the
character OF the market there was no
important explanation in the news. III
the statement OF tho secretary OF the
American Federation OF Labor, the I'M
favorable developments in the oil market,
the rumors OF dlscord at the peace con-
ference and the'continued unsatisfactory
disclosures coming from Washington In
connection with the railroad investiga-
tion had anything more than q senti-
mental effect 1t was not apparent. Rather
the pressure seemed to represent the
liquidation OF several accounts OF pro-
fessional traders who desired to close out
their lines In order to absent themselves
from the Street for some time. This
naturally tended to bring out a certain
amount of miscellaneous pressure from
floor traders as well as some profit
taking in stocks in the speciality group.
which was based on technical grounds
rather than developments in connection
with the news The fact of the matter Is
that the news had very little TO do with
the market. II did not appear. moreover.
that the professional traders had brought
out any real stocks In the course of the
day. although in certain directions the
pressure appeared to include something
moro than mere short selling.
As has been the case in recent sessions
the main pressure was again directed
against the coppers. steeis and minor in
considerable degree at one stage OF the
session or the other. The selling was
not alone confined to these Issues. how
ever. for there were also some sharp de-
clines in a number Of speculative spe-
cialties and oils, which have been promi-
nent recently. Mexican Petroleum was
a particularly weak spot, as were a num-
Der Of the other oils and individual is
sues. The rails held fairly we'll cons!c:-
er.ng the pressure elsewhere, but a few
Of the minor steels went lower on what
appeared to be an endeavor to get these
issues in line with the other steel shares,
which have experienced considerable de-
cline from their highs prior TO the sign
ing OF the armistlce. Consolidated Gas
was weak, following the publication OF
the unfavorable earning statement for
last year. Tho tohaccos fluctuated quite
widely, breaking rather sharply at firs.,
but subsequently recovering a substan-
tial part of their earlier losses
The money market was easier Call
money loaned as low as Az to AZ per
cent. rejecting the gradual withdrawal
of funds from war projects and the re-
turn OF conditions TO normal. There was
very little Of interest in the foreign ex-
change market. Sterling was firmer. but
the rest of tho rates were about IN
changed There was considerable interest
manifested during the day In the pro-
posed new foreign financing. Bank clear
ings for the week aggregated $'.l12,O23.-
600. q decrease OF Go per cent. from last
week, but an increase OF 20 per cent
over the corresponding week year ago
Business failures for the week were 1877.
against 1le last week and c3S in the like
week OF 1918.