Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-16
PRICE TREND LOWER
IN WALL ST. TRADING
Reaction Considered Wholesome
Corrective to an Overextended
Speculative Debauch
Stock sales today OH the New York
totaled 1 ,45O, 800 shares.

New York, June 16.-The New York
Evening Suns financial review this
afternoon is as follows:
The stock market broke today 9 to
points in no great volume of transac-
tions. There was temporary rallying
movement toward the close of the first
hour, but thereafter the general level
continued to sink lower and lower until
some stiffening developed in midafter-
noon.
There was no excitement whatever in
connection with it all. On the con-
trarary, the Street displayed much phil
osophic calm. seeming to feel that the
reaction in itself was wholesome cor
rectlVe to an overeXtended speculative
debauch and waiting with what resigna-
ton it might for the course to be run.
Ihe reason for the setback of last
week and today was SO obvious as to
leave few in doubt and. therefore, free
OF the nervous strain which accompanies,
as rule. beclouded understanding of
market wise influences and factors. 1t
is scarcely expected that a bull mar
ket can exist when money supplies are
lacking.
In nutshell that is exactly the situa-
tion at the moment. 1t is a question
Of a limited supply of funds and
rather insistent demand. The banks
have found that they are not equal to
the demand, quite irrespective of the
consideration whether or not it would
be good thing to give further en-
couragement to speculation. AS soon
as the Victory Loan campaign had end
ed heavy industrial financing was an
nounced. Day after day millions of
loans to corporations in one form or an
other were announced. There came.
at the same time, the Belgian credit for
$50 900 900. the loan to Sweden of S25.
600 900 and SO on.
Then followed the second payments
on war taxes, involving 81 .0O0. 600 900
or more. Today was the last day for
such payments, although it is probable
that most payments were arranged for
last week and in some cases probably
earlier. The government has as yet
made few. if any, re deposits with the
banks. Everything, therefore, seems
to conspire just now to tie the banks
hands. hence on top of the advances in
the call money rate last week, there
were today renewals at 10 per cent
for mixed collateral, and II per cent
for all industrial collateral. THIS was
the first time since December 1915
that the renewal rate has advanced
above 6 per cent.
The consensus of opinion in Wall
street is that, while some banks may
be taking advantage of the situation to
put further brokers on the tendency to
speculation, there is nothing like a con
certed effort to that end. Why the
banks of. the Federal Reserve system
do not avail themselves more fully of the
rediscount privilege is one of the mys-
teries of the situation, although in view
of the reserve boards general attitude.
as well as its recent request for infor-
nation as TO loans with government col
| lateral behind them, the mystery is not
so great perhaps as for the downward
course of stock prices. The bear ee-
ment, of course. is making the most of
the existing pressure.
The news of the day was not dwelt
upon much. Talk of Marshal Foch
making preparations to invade Germany
in the contingency the enemy does not
sign the treaty and the possibility of a
renewal of the old border troubles with
Mexican bandits were indeed dampeners
to some extent and played in the hands
of the bears.