New-York tribune., 1919-07-28
Financial Bureau.
Telephone Bceknan 5000.
all Street

stock market values unde rwent no i'm
portant change last week. Stocks dis
played strong resistance to selling
pressure, and at times showed extraor-
dinary recuperative powers. The spec
ulative market continued broad and ac-
tive, with another unbroken series of
million share days. Public participa-
tion in the trading was again very ac-
tive. At the beginning of the week
the market suffered q severe decline
and losses in many stocks on Monday
ranged from 2 to 10 points, and even
more in some cases. The shake
out was drastic while it lasted, but it
was only of one e-day duration, for on
Tuesday strong recovering tendencies
developed which carried prices back to
around the level from which the de-
cline started.
On the Monday break the average
price of thirty standard industrial
stocks dropped to around 1922. That
was fall from the recent high record
recovery that followed close on the
heels Of the ne-day decline three
points of the five lost were regained,
and during the remainder of the week
the market moved on fairly even
keel. Selling pressure toward the end
of the week developed against many
of the volatile industriais, but the
movement was not impressive At the
close the market had the appearance
of being in a strong technical position
despite the prolonged rise in prices.
Banking opinion, however, favored a
quoting down of trading for time at
least, the feeling being that the spec
ulatve pace of the past few weeks has
been too fast for the common good.
Generally speaking, the news was of
favorable tenor. although the financial
community professed to be much ex-
trouble in the steel industry, and, in
fact, sold stocks on Monday on that
development. Subsequently a reas-
surlng statement issued by the head
of the largest steel producing corpora
tion served to dissipate much of the
nervousness. Omission of the extra
dividends on the Bethlehem Steel COM
mon stock issues, while unexpected,
was not such an unfavorable influence
on the market as might be expected,
since that was reflection of past con-
ditions in the steel trade. whereas the
rise in steel shares has been based on
future prospects in the industry. Much
interest attaches to the quarterly
meeting of the board of directors of
the United States Steel Corporation. to
be held tomorrow, when the statement
OF operations for the three months pc
riod ended June 80 will be issued. Ac-
tlon viii also be taken on the quarterly
dividends. A poor earning statement
is anticipated, as the June Quarter
marked the bottom of the depression
that overlook the steel industry follow
ing the cessation of hostilities.
Interest in financial quarters con-
verges at the moment on the inter
national credit situation. Plans of the
bankers to evolve a comprehensive
plan of reconstruction finance through
which Europe can be provided with the
FUNDS required for the purchase of es-
sentlal commodities in the United
States have not progressed as rapidlv
as was hoped, but legislation now be-
fore the Senate is expected to set up
the machinery that will make possible
the granting Of liberal credits abroad.
Mean"hlle interests in practically
every important European country
have made inquiries in the American n
market for credits. German CONNER
clal and financial interests have ap
preached banking groups here with
proposals tor the establishment of
large acceptance credits. Cotton manu-
facturlng interests in England are said
to be seeking $1,000,0OO,OOO in credits
to finance the purchase of American
ray" cotton; There is general recog-
milton of the imperative necessity of
extending financial assistance to
Europe, and this point was emphasized
last week by leading banker, who
declared that the Industries Of the
country face the prospect of serious
loss through the rproduction OF
goods unless comprehensive steps was
taken toward providing the European
nations with the credit needed to buy
our surpluses
Supplies of Stock Exchange none,
have been fairly liberal and rates or
call loans have been steady, aroun6
and 6}2 per cent. The situation how
ever, is far from easy, and the pros
| poets are that money rates will con
! tlnue firm for a long time to come. I,
TACT, there is promise of easier none,
for several months. The demands O.
| the crop moving period, now close a
I hand, Will be unusually heavy thi:
year because of the size of the crop.
/ and the high prices. Banks in the
l interior Of the country have beer
4 carrying large balances in New Yorl
which have been loaned out on cal
10 take advantage of the high interes
/ rates on stock exchange funds, but a.
soon as the pressure of the crop NOV
ing demand for banking credit begin: