The sun., 1919-10-28
TORONTO EXCHANGE
FEELS SHAKEDOWN
Reaction Sets i'm, but Extent
Is Not Fully Reflected in
Transactions.
LOAN PROBABLE FACTOR
Weakened Position in New
York, Due to Failure of Indus
trial Conference, Contributed.

Special Correspondence to the Canadian
Section of THE SUN.
TORONTO, Oct. 27.-By the end of last
week it was apparent that a measure Of
reaction had set in on the Toronto stock
Exchange. though its extent and dura-
tion we're things that could not even be
Tprophesled. Since it amounted to merely
liNle shakedown it will have been well
come after weeks of steadily rising
prices, reaching in many cases to un-
reasonable heights. The boosting of nom
dividend common stocks, which had been
a dangerous feature of the earlier trad
ing, slaokened during last week, much 10
the relief of conservative observers, and
more attention was paid to well estab-
lished industrials, where the dividend
was secure and where there had not been
frenzed buying
How much the easing off on Friday
and Saturday was due to the tired and
overworked condition Of the market and
how much to the approach of the Victory
Loan campaign could not be determined.
Both were causes sufficient to explain the
changed position. The loan will take the
time and energy of dozens of brokers Tor
the next three weeks and II does not
seem possible that business on the Ex-
change can continue in any large way.
Should the impulse of the public be TO
keep on trading, it will be embarrassing
to the brokers and great physical
strain, besides tending to weaken the
loan organization.
1t was quite evidentsthat the market
felt the influence on Friday and Satur-
day of the weakened position In New
York, following the failure OF the Indus
trial Conference at Washington. How
long this influence might affect the To-
ronto Exchange is another matter, be-
cause at this moment labor conditions IN
this country appear to be better than on
your side.
Furthermore, the price Of stocks has
kept more within reason, as will be seen
by a comparison of the yield on repre-
sentative Canadian stocks compared
with similar stocks in Wall Street
Financiers here continue to view with
considerable satisfaction the outlook gem
orally. Most of them think there is too
much extravaganza. but a successful do
mestlc loan will be a big step in individ-
ual thrift. The bank statement for Sep
tember shows an increase of 100000, 900
in notice deposits for tlrs month. and an
increase of $lS9,000, 900 in the year.
Current loans are up by SAC, ,000, 900. and
the increasing power of the banks them
selves is seen in an advance of s13S,000,-
900 in total assets during the one month,
bringing the assets up to S2,S5l, 600, 0oO.
= What is operating to enrich the char
tered banks so rapidly may be more ap-
parent when their annual statements are
issued around the end OF the year. EN-
ployment conditions have improved, ac-
cording to the Department of Labor,
which states that there appears to be
plenty OF work available throughout
Canada One difficulty is that many re-
turned men in receipt of gratuities are
resting for a few months. while another
is that much rough work Is calling for
labor, while the foreign element who
formerly did this work is becoming thin
ner by emigration to their home land.
The introduction of mechanical muckers
by the Hollinger and Mcintyre gold
mines at Porcupine, shortly to be COM
pleted, will ILLUSTRATE one means of over
coming this labor scarcity.
A review of the weeks movement on
the Toronto Stock Exchange shows the
erratic character of the trading. on the
whole the week closed with net advances
in many important industrials, particu-
larly a group of specialties which had
been neglected by the market for some
time. Many of these are doing an i'm
proved business under peace conditions,
and on the whole the buyers showed bet
ter discrimination than for some time
past.
The following is summary OF the
| weeks trading on the Toronto Stock Ex-
| change: