The sun., 1919-09-12
FINANCIAL NEWS
AND COMMENT
Wall Street Not Taking Steel
Strike Threats Seriously
Early Losses Recovered.
EQUIPMENTS LEAD RISE
Profit Taking Sets In Near
End, but All Offerings
Are Taken.

Inc Stock market nad 10 race yeSter-
day the most important test OF its under
lying position since the sudden demands
CT the railroad brotherhoods were made
public over month ago. with tho def
decided to call a nationwide steel strike
on September %. the whole Street came
down expecting a repetition Of the sharp
decline that followed the railroad de-
mands. only of course 1t was expected
that the declines would be more severe.
The market started in full accord with
expectations, but before trading had got
very far the whole list suddenly reversed
itself and the market recovered practi-
cally all of its early losses, which had
ranged from 1 to as much at 10 points
In highly speculative issues. 1t was the
most curious reversal in the form of
trading Wall Street has seen in long
time and, the fact that 1t was fairly well
maintained tended to emphasize again
the opinion OF those who have been
maintaining all along that there is no
rea possibility of a steel strike.
In the first place. Wall Street could
not understand, after the initial out
burst of selling had passed, why 1t was
thai the labor leaders should postpone
the strike for another week. This was
all the more emphasized when 1t was re-
called that only on Tuesday the labor
leaders had given the President but for
ty-eight hours to avert a strike. To
make long story short the view that
Wall Street took was this: that the lead
ers are not 50 sure of their ground as
they would like the public to believe. At
any rate Wall Street could not under
stand why the strike had been post
poned since it is we'll known that there
Is no possibility of the Steel Corporation
giving in to the demands for a hearing
OF the labor men. In the second place,
the attitude which the steel trade in gen.
eral has taken toward the strike and the
cool confidence of the Steel Corporation
Itself in its ability to hold the largest
part OF the men at work in event Of
strike undoubtedly aided Wall Street In
recovering it's equilibrium. That there
ls a possibility of strike leaders going
ahead and forcing the issues is of course
admitted generally in the financial COM
munity, but at the same time the man
ner in which the proposed strike has
been handled, the various delays and
postponements of the actual decision to
strike has so strengthened the position
OF the Steel Corporation in the mind OF
speculative Wall Street that there are
these who believe that little more will
be heard about the strike, the announce
ment of the date of the strike to the con-
trary notwithstanding.
Nevertheless the financial district had
to go through quite strenuous first
hour at the outset yesterday. The fact
that the strike had been called was the
all important factor SO far as traders
were concerned and they began imme-
diately to offer stocks downward, with
the result that the whole list, including
Steel common in particular, suffered
rather severely. But 1t was only for
an instant, for Steel common, which had
opened at 101, had come back above
103 by the end of the first hour. Then
the whole market turned strong, coming
back very sharply. In this movement
the leaders were the equipments Bald
win came near equalling its old high.
Car Foundry and American Locomo-
tive in particular were very active and
strong. Toward the closing some profit
taking set in and traders again at
tempted to depress the market on the
theory that the recovery had been en-
tirely too rapid to be maintained, but
all offerings were absorbed and the
market turned upward again at the very
close, a circumstance which was COM
mented on very favorably in commission
house circles following the closing.
There was no change in the money
situation. Notwithstanding the arrange
ments which are being made by the
banks to take care of the tax instalment
next week, call money was fairly easy
all day. The rate still held closely to
6 per cent, but there was no actual
shortage such as occurred in the cases
of all previous tax instalments. Weak
ness in marks and francs, both of which
went to new low records. featured what
little activity there was in the foreign
exchange market. Sterling was steady
and not very far removed from the pre-
ceding days final. On the other hand.
there was a slight upturn in Belgium
exchange. This reflected, undoubtedly,
reports to the effect that another credit
for that country is being negotiated here.