The sun., 1919-07-11
FINANCIAL NEWS
AND COMMENT
Stock Market Fails to Respond
to Tonnage Statement Of
Steel Corporation.
TRADING Is MORE ACTIVE
Many Issues Show Substantial
Declines at Close of the
Session.
TRADING Is MORE ACTIVE

terday rather upset the calculations OF
those who have been figuring on n moro
or less pronounced Improvement in
prices on the publication of the monthly
tonnage statement of the Steel Corpora
ton. This statement was as favorable
as expected, but, as usual. traders sold
stocks on the publication of the news on
the theory. no doubt, that the market
had already discounted the statement
and in spite of the stubborn resistance
offered throughout the general list not
few issues closed the day with sub
stantial declines. Trading was some
what more active than on the preceding
day for the reason that the profession
als were more active on the selling side
and for the additional reason that the
course of prizes reflected a good deal Of
shifting of commitments from one group
OF stocks TO another, but In the main
the session was comparatively tame
affair in comparison with Immediately
preceding sessions this week. At least
the sensational movements with which
the Street has become familiar Of late
were conspicuous for their absence.
The fact that the Professionals were
able to make some progress on the
selling side OF the market In face of the
bullish statement on the Steel Corpora
TONS untitled orders was undoubtedly
financial community. as was the failure
Of the copper shares to respond to 20
cent copper. but the movement in re-
ality was not very significant. No real
selling was encountered on the way
down, so far as could be determined
and II appeared as though buying was
going on on a scale down all through
the session. At any rate those who
have been maintaining all along that
yesterdays tonnage statement would in
dictate the turning. point in the steel in
dustry found themselves amply justi-
fed In spite Of the market. Not only
did the figures show that the steel in
dustry had finally turned the corner,
but the increase itself was much larger
than the most optimistic had predicted.
ut is a reasonable inference that some
of the hesitation may have resulted
from the uncertainty over what the
President might say to Congress- This
was not received In full until the market
was we'll along into the afternoon and
II may have tended to restrict opera
tions, but one thing is certain. there
could be no question over the future OF
the steel industry after yesterdays
statement. The situation Is precisely
what It was in 1915. when the steel in
dustry was emerging from the depres-
sion at the beginning Of the war and
prior thereto, and the action Of the
stock is exactly the same.
The chief feature OF the day. so far as
the individual price movements were
concerned. OF course, was the stee!
stocks, not for the reason that their move
ment was spectacular, but. on the con-
trary because their movement was out
Of line with what Wall Street had been
expecting. Most of the financial district
had come down prepared to see boiling
market in these issues and when the
buying power was not forthcoming to
sustain what Improvement had already
been recorded at the outset traders nat
urally took advantage of the opportunity
to sell stocks. In some directions, SUCH
as the specialties, considerable progress
was made, but as a whole the market
held rather well. But not all Of the list
was weak by any means. While the
steel shares were receding and the sper
cial issues were under pressure fresh
buying power developed in the food
shares and the marines. With respect
to this buying. most OF II undoubtedly
took place on the theory that the ship
ping shares and food stocks would be
the first to benefit as a result Of the lift
ing of the war restrictions against tho
enemy nations. United Food Products
recorded a sharp improvement and there
was more than the usual amount of at
tention manifested In both marine pre-
ferred and common. although the latter
was most active.
The money market showed a distinct
improvement. as was TO be expected Call
money went above 6 per cent. at the
outset, but as the day progressed SUM-
Client funds were made available to meet
all demands and the rate dropped to the
to S1a per cent. level at the closing.
Considerable interest in connection with
the money oituation was manifested In
the statement put out on the day before
by member of the Federal Reserve
Board concerning the fluctuations In call
money, but It had no effect on the trading
so far as could be determined. The for
eign exchange market was dull without
any special feature except francs, which
were firmer. Sterling and other rates
showed a steadier tone, but they did not
do very much during the day.