The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-13
FINANCIAL NEWS
AND COMMENT
Upward Movement of Stocks
Increases but Prices Drop
at Close.
NEW LEADERS APPEAR
Activity i'm Small Lots Toward
End of Session Indicates
Profit Taking.
NEW LEADERS APPEAR

In the stock market yesterday the up
ward movement was continued with in
| creased momentum throughout the best
| part OF the forenoon, with the general
| list making further and more pronounced
progress. but the pace was entirely too
| fast to be maintained for any length of
time. In the afternoon stock came out
on the market, overtaxing temporarily
| the absorptive capacity, and at the
| closing prices, with few exceptions sold
Off rather freely. There was no change,
! however, in the general underlying spec
ulative conditions which have been back
or the movement for the last month or
so. 1t was merely a question of profit
| taking and as to how far it would be
continued before new buying orders came
in to support the market. There was
| some further selling OF steel and the
standard shares, but altogether the SELL
ing was tri1ing and no more than might
nave been expected in consequence Of the
steady rise which the market has expe-
| rienced during all OF last week.
1t was very noticeable in the last part
| OF the day that the selling was mostly
in small lots. This was indicative Of
profit taking rather than any real selling
on the part Of those who have been
mainly responsible for the upward
movement. 1t may have reflected also
! disappointment
the failure of the rails to respond to the
overnight announcement OF plans or the
| financing of the railroads during the
temporary emergency. Those stocks
closed very strong on Tuesday and IL
was the general expectati ton in financial
quarters that they would at least make
respectable showing. But the announce
ment in the morning papers did not
mean that the question had been set
tied by any means, although undoubt-
edly most OF the obstacles that remained
In the way Of the Railroad Administra-
ton have been removed. Still there
retuains to be seen just how the scheme
VIII be carried through, the part which
the banks will have to play in the plan
and the amount of money which they
Will be called upon TO furnish during the
next three or four months. This is es-
pecially important from the stock mar
ket viewpoint, for a good deal of the
success of the upward movement I'M
doubtedly depends upon the amount of
money that will be available for specu-
lative purposes.
But while the general list was YIELD
ing under the pressure of realizing sales
new leaders came forward in the form of
the oils. the individual specialties. OF
the type OF Texas Company, Indus
trial Alcohol and the motors. Texas
company was particularly strong
feature, selling up to a new high for
ten points, while Industrial Alcohol
likewise made new high for the
current features. These were the out
sanding features OF the day, although
by no means the only centres of attrac-
ton. Studebaker was active and strong
making further gains in the afternoon
in what appeared to be a resumption OF
the forward movement which was halted
last week by profit taking. The gem
eral list. however, after a further squirt
In the forenoon, was given over largely
TO profit taking. Steel sold to new
high of 9S5s, closing the day with a net
loss OF more than a point The same
story was true of the rest of the market,
and Wall Street had no complaint to
make over the liquidation of profits after
the extensive rise of the last two or three
days. How far the movement will be
carried is of course a matter of conjec-
ture. but it looked as though all sales
were being readily absorbed.
An interesting feature of the trading
was the ease of call money in face of
the heaviest trading of the year Call
money loaned down as low as 49, to 3
per cent. Notwithstanding the increased
demand for speculative funds which has
resulted from the broadening of public
interest into the trading in the last few
weeks. The foreign exchange market
was quiet. Spanish pesetas were firmer
and Swiss francs were a trife easier,
but otherwise rates were about UNI
changed from the preceding days closing.
Activity in the bond department con-
tinued to expand but the movement of
prices was for the most part irregular,
although price changes as a rule were
not very far removed from the preceding |
DAYS closing