The sun., 1919-09-06
FINANCIALLY NEWS
AND COMMENT
Erratic Trading Continues in
Stock Market and Profit
Taking Is General.
RALLY is MADE NEAR END
Much of Loss Is Recovered and
General Tone Of Strength
Is Impaired to List.

Trading in yesterdays stock market
was very erratic again, with heavy
profit taking going on throughout the
best part of the general list. and ac-
companying this selling was a fresh
outburst of rumors concerning the steel
strike situation. This had no very pro-
nounced effect. however. anywhere ex-
cept in a few of the high priced special
ties and the steel shares. but II tended
to emphasize the weakness In some
directions. and for the time being gave
the Wall Street market q very unsettled
appearance Then II was realised that
what tho head OF the American Fedora
ton OF Labor had said to the President
about the steel strike had In no way
altered the situation. and the whole list
reversed itself In the last hour. coming
back almost as quickly as II had de-
clined earlier In the day. Not all Of
the losses had been recovered at the
closing, but the markets tone was very
strong, and the indications were that
about all of the readjustment had been
completed. so far as the leading issues
were concerned.
The real reason for the continued de-
cline in the market of course was the
same as on Thursday, namely the un-
healthy technical situation. The fact
that the Gompers letter about the steel
strike was made public tended to acceler-
ate the weakness, but In reality II
brought out little more than professional
selling. What the head Of the Fedora
ton of Labor said to President Wilson
was nothing more than he had said
some tine ago to the chairman Of the
Steel Corporation. and. therefore. bore
no significance whatever. The only
trouble was that II came at a time when
1t could be used to the best advantage
49, vhx, 40 hot toI
duty for the last few days to raid the
market whenever there was the slightest
provocation. The declines which were
thus recorded were rather severe in the
case of such issues as Steel common
and Cruc BILE. as might have been reason
ably expected. But there was also
another side to the situation which was
really favorable from the point Of view
OF those who have been following the
constructive side Of the market II did
Just what they had been hoping for
shake out the weakly held accounts so
that the forward movement could be
resumed again without endangering the
whole underlying structure.
The weakness started right at &C
outset. Another 10 point decline e
night In Crucible had the effect Of h.
settling the whole market. But as coon
as this weakness had run its course the
market strengthened again until about
midday. when the letter concerning the
steel strike was made public This was
the signal which brought about most OF
the real weakness. II resulted in an
outburst of professional selling in the
steel stocks. which put Steel common
below 1o4 and forced a further substan-
tial decline in Crucibie. The rest of the
market followed the weakness Of the
highly speculative favorites, but nowhere
except In the case of the higher priced
speotalties was the selling SO pronounced
as 1t was In Steel. Then when It was
realized that nothing really new had
been brought out in the Gompers letter
the market turned about in the last hour
lust as suddenly as 1t had weakened
and the whole list closed the day sub
stantially above the lowest prices OF the
session. There were a number OF special
stocks, however. that stood out all day
in spite OF the unsettlement. One OF
these was Chandler Motors. which not
only held It's ground. but closed the Sos
sion with a substantial Improvement
The foreign exchange market was
weak again. Sterling dropped sharply
and there were further recessions also in
the case of francs and lire. However,
In connection with the exchange situa-
ton II was learned that bankers are
hoping for developments shortly as
result of the change in the Department
OF Commerce. 1t has been this depart
ment which has held up all of the
plans which the bankers have made for
the sterilization of exchanges, and It is
assumed that now that the main oppo-
sition to the plans Is out of the way
an announcement will be made very
shortly of Il plan of furnishing for-
elgn credits. This Is the only remedy
of the whole situation. and until some
plan Of this character Is In operation
no improvements can be expected In the
exchange rates, at least sterling. francs
and lire, There was no special feature
TO the money market. Call money was
easy for the best part Of the day. but
closed the session at 6 per cent, nc
doubt on account Of the extra demand
for carrying stocks over the week end