The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-15
FINANCIAL NEWS
AND COMMENT
Trading Is Much Quieter and
Lower Levels Are Touched
in Most of List.
FINAL RALLY Is FUTILE
Deficit Of Close to 100000 in
Reserve Is Shown in the
Bank Statement.
FINAL RALLY Is FUTILE


speculative position to conform with the
ideas Of those whose business II Is to
finance the securities market continued
unabatei yesterday, new low levels
being reached throughout the greater
part Of the general list. The trading
was very much quieter and there ap-
peared to be some good buying going
on on scale down In the standard
industrials and railroad shares. But the
closing level was generally below the
preceding days final In spite of q sharp
rally at the closing, which was due to
short covering and evening up Of COM
mitments for over the period of sus-
pended trading. There was nothing to
worry about in the way of money yes
terday for the reason that there was
no money market, but traders had at
least succeeded in reaching the publio's
stoploss order and they were not to be
satisfied until they had brought on an
other food of liquidation.
Commission house comments stiii re-
Elected very cautious sentiment, but
only on account Of technical reasons.
The worst has been passed in the money
stringency and there has been no change
In the fundamental conditions which
have been in back of the rising market
during all of the past three months.
These conditions remain as they have
a
to the business community In general,
but that Is another matter just now.
The trouble with the securities market
is that the buying side OF the market
has been overdone for the time being
and there Is little question but that until
this situation has been corrected the
Wall Street community Is likely to see
quieter markets for some time to come
With respect to the money situation,
the worst has now been passed, ac-
| cording to conservative opinion. with
| most OF the payments OF taxes made
yesterday. the strain upon the banks
on Monday will be very light and it Il,
predicted that money will again rule
! at per cont. with the probabilities
| OF even easier money later on in the
| week. undoubtedly by Wednesday or
Thursday. There IL another furry COM
| ing at the end OF the current month.
but the indications are that at that
time there will be a considerably quieter
securities market.
Most OF yesterdays selling. as on the
preceding day, converged on the highly
speculative specialties. whose advance
recently has been all out of proportion
| to the Improvement in the rest of the
list. Steel common. Southern Pacific,
Reading and Union all had to stand their
share of the selling. but generally speak
Ing the absorptive capacity OF these is
sues was somewhat better than in the
case of the rest Of the market. On
the other hand, there were a number OF
special stocks. such as Royal Dutch.
the leather shares, American Interna-
tional and others. which lost ground
more rapidly than some others, and
which did not participate very largely
| in the rally at the closing. This was
not so true Of American International
and Royal Dutch as 1t was of the other
specialties. however. The tobacco stocks
still continued to hold their ground we'll
and there was excellent buying of the
Equipment. International Nickel and a
few other individual issues. although
they shared in the early reaction, as
did other stocks.
II there had been any doubt as tc
the necessity of the reaction. in so fal
as technical considerations were con-
cerned, II must have been pretty gen
orally dissipated after the closing. wher
Wall Street got a chance to look al
the bank statement This showed a de-
felt in reserve Of approximately $500,
900, the first dehcit in that item which
has been reported in the bank statement
since October 10. 1914. when the fnan
cial community was emerging from thu
panic at the beginning of the war. TIL,
lowest reserve reached since that time
was on September 1, 1917. when thai
item was placed at $12,307,0o0. Tit
decrease reserve was due principally L
the loss of cash OF member banks witt
the Federal Reserve Bank, which to
tailed about ssa.ooo.ooo. There was {
small increase IN loans. but general,
speaking this item showed the effects Of
the more conservative course Of specu
lation during the week. There was verJ
little of interest In the foreign exchange
market. Bank clearings for the weel
totalled ss.112.552,4ss. against 1885.
s42,4e2 in the week before. and $6.242,
7ss. 42s in the corresponding week veal