Norwich bulletin., 1919-06-11
FINANCIAL AND COMMERCIAL
MARKET WAS DEPRESSED

New York, June 16-Renewed ex- preSsion of concern on the part of federal reserve bank officials in Wash ington regarding excessive specula- tion was considered the dominating factor in depression of from one to eighteen points in prices on the stock exchange today. The turnover in shares approached the two million mark. The rate on call money for mixed loans did not advance beyond it's customary six per cent. and this conformed to the understanding that the federal reserve board regarded as impracticable any such method of favoring speculation, owing to the fact that there is so much government fin ancing in progress which must not be subjected to interference. The rate on industrial loans ruled at nine per cent. late in the day.
 In some quarters the opinion was expressed that an analysis of the federal reserve banks letter to its member banks asking for information as to the extent of borrowings for speculative purposes showed that the communication was not intended to deal with investments in seasoned se- curitieS but rather only with certain oil properties and other enterprises be- | lieved to be worthless. After publi- cation of this interpretation, late in 1 the session, prices improved somewhat, l but the market closed heavy and it's | tone was decidedly uncertain. Short covering also was d factor in the late | moderate recoVeries.
 | Virtually only the tobaccos group ex- hibited sustained strength during the day, and the advances of six points in American Sumatra Tobacco and frac- 1 tious in other shares were attributed ! to announcing that some of the large interests had organized company to extend their operations into the for eiGn retail field.
 Aside from the federal reserve banks determination to stabilize the speculative situation, several definite influences served to depress certain stocks. General Motors after a sharp break of Is points recovered some of it's loss but closed Il points under Mondays closing quotation, the weak ness being associated in part with expectations that the stockholders to- morrow would vote to increase capital ization. Southern Pacifc's loss of 3s points was accounted for by it's poor April earnings.
 1 Losses generally ranged from two tc eight points in motors, one to eight ir shippings, one to seven in oils, one tc three in rails and one to five ir equipments. U. $. Steel suffered under the effect of the general weak ness and declined 25s points. The de- crease in steel tonnage, failure of the Chicago, Rock Island and Pacifific tc take action on preferred dividends and the political developments d
 Washington were not overlooked by the bears as weapons. After the mar. ket's close there was an immenst
 borrowing demand for stocks in thu loan market, confirming other evidenc-
 es of a largely expanded short ac.
 count. ales for the day amounted tC
 1900 900 shares.
 Bonds reflected in a moderate way
 the weakness of stocks with the Lib
 erty issues also shading. Total sales
 par value, aggregated s13,3o0,0o0
 was reported that the Japanese gov
 ernment had invested s130,00o, 900 il
 the certificates of Indebtedness of tn,
 United States treasury.
 Old U. s. bonds were unchanged ol
 call.