The sun., 1919-03-16
FINANCIAL NEWS
AND COMMENT
Reaction in Stocks Continues
and Heaviness in Standard
Shares Increases.
SPECIALTIES GO HIGHER
Bank Statement Shows Gain
In Surplus Reserve to
S58,783,51O
SPECIALTIES GO HIGHER

The reaction continued throughout the
best part of the stock market yesterday
with increasing heaviness among the
standard shares. There was the same
/ heavy realizing In that department as
on Friday and opposing that influence
there was a continued broadening of
public interest in the shipping shares,
/ the food stocks, some of the minor oils
/ and various other individual specialties
OF the type OF American International.
The result Of this mixture OF buying and
selling was highly irregular range OF
! prices at the closing with numerous
spectalties showing quite extensive
! gains and the so-called standard stocks
generally exhibiting fractional net de-
clines for the day as whole. This was
the result also In the two preceding
sessions. The transactions were on a
materially smaller scale than on previ-
Gus days this week and there also seemed
to be slowing down Of momentum
although the dealings were still far in
excess Of the sessions of n month or SO
| ago.
The fact that the standard stocks
were heavy probably was disappointing
| to those who had expected a sharp up.
turn during the course of the trading
But those who had anticipated anything
| like that failed to take into account the
usual week end evening up process BY
| traders who mako It rule never 70
| carry stocks over a period OF suspended
animation. The general trend of the
| market, however. was still upward, not
withstanding the profit taking and aside
| from the evening UP transactions. II
did not appear as though the profess
sionals had been successful in dislode-
| ing any considerable amount of com.
mission house stock This was plainly
evident from the fact that the selling OF
| the standard issues made no impression
whatever on the speciality shares. in
which the rise was continued with the
same vigor as ever. The recessions else.
where in the list were manifestly due
to the shifting of speculative commit
ments for over the holiday. except in the
coppers. In that department there were
indications Of heavy selling again for
the account of professional traders who
believe apparently that those stocks have
not as yet discounted the reimbursement
from war to peace basis, the &C
| companying piling up of surplus metal
and recession in prices
Enthusiastic buying, however, was
continued in the shipping shares with
international Mercantile Marine pre-
ferred and common making further
gains. The Harvester shares, Advance
Rumely, the chemical stocks, General
Motors debenture stock and American
International were all bid UP briskly and
made further advances. on the other
hand profit taking sales were plainly I'M
der way in Steel common. Industrial AL
cohol, Distillers, the equipments. the
ruDoers and the tobaccos Those shares
have been the leaders OF the inward
movement for the past month and the
those who have watched the expansion
of speculative activity and who have
taken into account the extent Of the rise
in the general market that is TO say the
general list. This was entirely neces-
sary to strengthen the technical position
OF the market and to clear away the I'M
safe superstructure that had been erected
as result of the advancing movement.
Moreover at the closing yesterday It ap-
peared as though that process had been
pretty generally completed, and that
furthermore stocks were I'm a stronger
position than at almost any other time
since the current movement began abou;
a month ago.
The bank statement disclosed an in
crease in surplus reserve of ss,S72.44O
bringing that item UP to s5S7S351O
This was due primarily to a gain of al
most $25,00O,0O0 in the cash reserve of
member banks with the Federal Reserve
Bank of New York The big feature in
the bank statement, however, was not the
improvement in the reserve position. but
the expansion in loans. This unduubted-
ly reflected in part the expansion in
speculative activity on the Stock Ex-
| change The loan item showed a gain
of more than 1000, 900 and the aggre-
gate as disclosed in the statement was
the largest in the history of the Clear
ing House Association.