The sun., 1919-08-29
FINANCIAL NEWS
AND COMMENT
Market Continues Reassuring
in Spite Of Uncertainty
Over Strike.
TRADING rs RESTRICTED
Stocks Gain at Outset, but
Lose Improvement Before
End Of Session.
TRADING rs RESTRICTED

Inc STOCK market again yesterday
hinged very largely on the news In con-
nection with the steel strike situation, and
as this news was moro or less uncertain,
the action Of the market was very err
ratio again. Everybody who had in mind
the excellent showing that the market
made on the preceding day naturally
bought stocks at the opening on the
theory that the overnight developments
indicated that the possibility of an i'm
mediate strike was more or less remote,
with the result that the market opened
up very materially all the way around.
In the afternoon, however, when the
decision OF the labor leaders was made
public that unless the Steel Corporation
acceded Immediately to the demands of
the men for a hearing the strike would
be called at once, prices went of again
and the greater part of the early inn
provement was lost. But just as was
the case on the preceding day. the actual
developments in connection with the
market were reassuring. Notwithstanding
the substantial setback in the leading
speculative favorites at the closing.
There was no real weakness so far as
could be determined at any stage of the
session. Buying was naturally very
much restricted after the first hour or
so on account Of the prevailing uncer-
tainty In connection with the strike sit
uation, with the result that the bears
had things more or less their own way
for the last hour. But in comparison
with the violent outburst of selling which
greeted the announcement of the sudden
demands of the railway brotherhoods
about month ago, the result of yes
terday's announcement in so far as the
selling was concerned was more or less
OF joke There was professional selling
of course, but 1t was a case again OF SELL
ing into a bag, with the traders receiv-
Ming some minor aid from the cashing in
OF few profits, which had been accumu-
lated on the constructive side during the
advance in leading issues at the outset.
AS for the steel situation itself. the
Street was more confident than ever that
II the worst comes to pass the test of
strength between labor and the Steel
Corporation will result In an overwheln-
ing victory for the latter. There was
no special reason for this, that is to say,
no more reason than there was on the
preceding day. The fact Of the matter
is that the financial district is relying
only on its own common sense In this
| matter. 1t believes that the public is
tired OF strikes and that any such steps
| as the union leaders are advocating now
would be nothing less than suicidal for
them.
The volume Of trading was again very
light in comparison with recent sessions,
! but whatever activity there was in the first
| three hours generally resulted In higher
prices. Baldwin was taken UP again and
so was Crucible, with Steel common ana
other heading speculative favorites gen.
orally showing Improvement all the way
| from a fraction to as much as three
| points and more. Then in the afternoon,
when the decision of the labor men was
| made public, the market started back
ward again and those issues WHICH had
been strongest at the outset led the
| decline. Baldwin lost most of it's early
advance. as did Crucible and Steel How
1 ever there was very little real Selling III
| connection with the pressure, with the
result that once the short selling had
been completed stocks steadied, improv-
| ing fractionally from the low OF the last
hour, right at the closing. This was one
OF the most encouraging features of the
situation. for It showed that although
some progress, there was very little de-
sire on the part of Wall Street in gen.
eral to follow up the decline.
The money market was quiet all day
| ana not very much changed from the
preceding day. Call money opened at
| s per cent and closed 5h. Sterling
continued Its recovery. At one time
, sight drafts were quoted as high as 4.24
but later on in the day declined on the
! news that the Bank of England haG
lowered the interest rates on foreign de
pcsits from 4 II to 3 per cent. Francs
| and lire naturally recovered in sympathy
with sterling. Pesetas, which have been
under pressure recently. also recovered
10 points of their losses. The Bank OF
England statement disclosed proportion
OF reserve to liabilities Of 22.76 per cent
against 22.94 per cent last week DROP
OF Az cents in the price of bar silver
was about the only other interesting
financial development in the days news
| Cotton was steady to firm in a marke,
engaged In evening up accounts against
the coming holidays. Grains were under
pressure again.