The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-27
FINANCIAL NEWS
AND COMMENT
Fresh Speculation Breaks Out
in the Oil Stocks and tho
Rail Shares.
FINAL PRICES SHOW GAIN
Bank Statement Discloses q
Loss in Surplus Reserve of
About $10,608,0O0.
FINAL PRICES SHOW GAIN

Again yesterday the stock market
rather upset calculations of those who
had expected trading to continue quiet
until the Steel meeting was over next
Tuesday. Most OF the speculative fra
ternity had come down convinced that
the market had entered a period of quiet
until this development was we'll out OF
the way and that speculation would
continue active only In the miscellaneous
oils and lower priced yails. In this re-
spect all expectations went astray again.
Not only was the buying on the increase
In the oil stocks but the movement
broadened as the session progressed. and
in the last hour made itself felt In all
parts OF the standard list. There were
further violent price changes In the
Royal Dutch issues and other oil stocks.
but the outstanding feature of the day
was the renewed participation In the
higher priced railroad shares, all OF
which were carried substantially higher
for the day as whole. Final prices
represented net gains of more than a
point all around.
In SO far as tho fresh outbreak Of
speculation in the railroad shares was
concerned, the movement was a distinct
surprise to the financial community. be-
ing carried on rs It was In the face of
further disooursging features as to the
hS'OoSo SOsb VI TdllTOdu taDOT. Inc
only explanation OF this was that the
buying represented a shifting of interest
to the rails while profit taking was being
ind'lged in in the industrials. But even
this theory was rather thrown aside in
that there were numerous industrials,
such as Steel common. which were car
RED forward with equally as much ease
as were the oil stocks OF the type of
Royal Dutch. The only answer to such
situation as this is that the public has
control of the market. This makes the
normal calculations OF professional Wall
Street practically worthless, inasmuch
as the so-called public simply goes in
and buys stocks regardless Of the out
look and whatever developments may be
foreshadowed in the future which ordi-
narily would have a bearish effect on
the general list In this respect the
most striking example OF the market was
the strength of Steel common. It is a
foregone conclusion in Wall Street that
not only will the quarterly earnings
make a poor showing but that tho extra
dividend will be cut, II not Topped OF
altogether. Yet yesterday absolutely no
regard was paid to this in 30 far as the
buying was concerned.
The most important part OF the specu-
lation. as on the preceding day, was
carried on in the oils and so-called OIL
rails OF the type of Southern Pacific.
But this does not mean that the rest
of the market was neglected. On the
contrary the activity spread to all parts
Of the list, the higher priced standard
rails participating in the movement as
we'll as the steels, oils. individual shares
and the speciaities. Royal Dutch shares,
both ordinary and New York. were car
ried forward on further violent buying
to new high records. Southern Pacific
experienced another sharp squirt. which
carried IL close to the high of last year:
Steel common. which had been expected
to continue quiet was taken up again
and moved forward above par with
the same case which has been charac-
teristic of the whole market hereto
fore. And even the copper shares
showed some signs of life at one time
or another. Trading. which on Friday
had shown some indications of siacken-
ing, was on n larger scale than ever
and absolutely no attention was paid
10 the usual week end considerations
such as evening up transactions for over
the holiday.
The wee'ily statement of clearing
house members disclosed a loss in sur
plus reserve of approximately sl0,s0s.-
900, which was due in large part, IL
not wholly, to a loss in cash reserve
with the Federal Reserve Bank of New
York OF $l0.724.0O0. But the most
surprising thing about the statement.
however. was the decrease in loans of
about sl2.00o000. This occurred not
withstanding the large increase In spec
ulative activity on the Stock Exchange
and to some extent confirmed statements
mado recently that brokers' loan ac-
counts are not increasing in spite OF
the heavy public participation in the
market