The sun., 1919-05-01
FINANCIAL NEWS
AND COMMENT
Steel Stocks Break Sharply
Under Heavy Movement
in Selling.
TRADING rs INCREASED
Some Specialties Hold Well in
Spite Of Pressure Against
the Standards.


IN yesterdays stock market for the
voices OF conservatism which were raised
last week In warning against the possi-
bility OF an adverse movement in security
prices with the declaration Of the Steel
dividend. The session had a SELLING
character from start to finish. becoming
more pronounced with the progress OF
the session. and for the FIRST time in
weeks II was apparent that the Absorb
tive capacity OF the market was tenn
porarfly overtaxed. All of this was In
general way direct reflection OF what
happened at the meeting of the Steel
| directors at the close of business on the
preceding day. But In so far as the gen.
eral market was concerned the steel
situation was rather aside from the main
consideration of the day. The main fact
IN connection with the days movement
OF prices was that the speculation in the
various oils and specialties had been car
ried to a point where It was becoming
rather dangerous to the financial com
munity In general This was borne out
by the fact that Wall Street had no com
plant to make over the doing OF much
that had been accomplished in the last
flew days.
| Nevertheless the steel situation was
not overlooked by any means. Although
the cut was greater than expected in
|
an accurate survey of the general indus
| trial situation. At the same time Il
brought forward again the question as
to whether or not the general market had
| about discounted whatever Increase In
/ business may be expected in the imme-
dlate future. In so far as the steel
shares were concerned the markets an
swer to this was plain. 1t was an en-
tirely different story, however. with the
rest Of the list In the specialties selling
represented merely a cashlng In of profits
on the part of those who have carried
stocks considerably above the levels at
which they were purchased and who I'M
doubtedly would have taken profit.
whether the Steel dividend was 10 Wall
Streets liking or not. 1t was merely a
! question, 80 far as these issues were
concerned. as to how long the profit tax
Ing would continue before stocks reached
levels where they would become attrac-
tive again to the public. and at the clos.
ing last night 1t appeared as though
! much of this had been accomplished
! Meanwhile the financial district inter
ested Itself in several new issues, which
either have Jagged behind recently or
have been neglected altogether and al
the end OF the day there were a dozen
or 50 special issues which showed sub
stantial gains.
! The pressure was naturally the heav-
lest IN the steel and minor industrtals
! which were the principal targets of the
bear'sh speculation. Steel common itself
experienced sharp decline and was
well supplied on all bulges. The weak
ness here stimulated more or less selling
| In the active speculative specialties All
Of the food shares, the ROYAL Dutch is
sues, some OF the equipments and other
issues which have occupied a great deal
of Wall Streets attention lately went
lower on the day as a whole although
most Of them rallied slightly in the
last hour On the other hand there
were number of strong spots, In which
there were evidences of fresh specula
tive buying. These included American
Beet Sugar, which advanced in gym
patty with reports concerning the de-
velopment OF its oil properties IN Cali.
fornia, American Steel Foundries. Amer
lean Sumatra and some Of the other to-
| baccc shares. But as general rule the
| market was irregular throughout the
best part Of the. day and by far the
greater number of active securities
showed net losses at the net OF the day
There was very little change in the
money situation although II was APP
parent again that the banks are taking
precautionary measures to prevent any
thing such occurred at the end of the
big bull market in 1916. There IS nc
general disapproval OF the present mar
l,et In banking circles, but at the same
time there Is a disposition to proceed as
conservatively as possible. which in the
long run may be an encouraging factor
in the market There was nothing oil
great interest in the foreign exchange
market. Sterling and francs were gen.
orally steady and other rates about un-
changed from the preceding day 9 clos
!! ing. Cotton, corn and oats continues
heavy throughout the day Tho bono
market was quiet. Interest In this con
nection IL centered in the new Govern
ment bond Offering and all investment
houses have delayed new offerings until
this loan Is subscribed and the payments
for IL all we'll out OF the way.