The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-05
FINANCIAL NEWS
AND COMMENT
Stock Market Is Quieter and
Steadier, but Prices Pick
Up at Close.
BUYING Is UNDIMINISHED
Interest Shifts Back to Oils
and Rails and Later to
Some Industrials.
BUYING Is UNDIMINIsHED

The principal question before the
financial community yesterday was az to
whether or not Tuesdays furry in
money had definitely put an end to the
advancing movement which has been un-
der way lately on the Stock Exchange.
Tho decline in the last two hours of that
session had been 30 severe and the losses
so general that It was feared that the
whole market structure had been endan-
gered for the time being. But. as II
turned out yesterday, It appeared as
though nothing more than a few stop
loss orders had been uncovered In the
highly speculative Issues In other
words 1t was apparent that the publics
profits have become 80 enormous that
something more than the ordinary reac-
tion will be needed to dislodge the main
body of stop loss oriars which have been
put into the market to protect the &C.
cumulated profits. At any rate the mar
ket was Quieter and steadier from start
to finish, and the trend Of business in
the last hour was to pick up around the
best prices of the day. although most
Of the excitement to which Wall Street
has become accustomed lately was con-
spicuously absent from the dealings.
The money market, while not alto
gether favorable from the speculative
viewpoint. was easier, and the story OF
concerted attempt on the part Of bank
ers to bring about a cessation OF the ex-
cessive speculation was generally dis
credited In Wow OF overnight Develop
menta While the general opinion in
banking circles 10 that the recent pace Of
speculation has been entirely too en-
thusiastic for the markets own good. II
can be stated authoritatively that there
was no movement on the part OF any
NJ I'm nj tn he fin oil iefx -
to bring about such a condition as pre-
vailed on the money market for the last
two hours of Tuesdays session. On the
contrary. the money situation appeared
yesterday to hive been the accidental
rather than the real reason for the de-
cline. for although the money situate
was OF course the factor which started
the selling. the size OF the declines was
due entirely to the topheaviness of the
market As a matter of fact It was dis
covered yesterday that the reasok that
money was SO firm on Tuesday was on
account of the payments that were be-
ing made TO the Government for the
Victory Loan notes Wall Street had
forgotten all about this payment and
when the effects of the strain on the
banks began to be felt IN the stock mar
ket II was Immediately assumed that
the banks had begun to apply the spec
ulative brakes. an assumption which was
not warranted by the facts OF the case.
At any rate the main buying power of
the market yesterday was undiminished.
In the specialties and other highly
speculative issues the recovery was due
principally to short covering by those
who had put out short lines on the pre-
| ceding day in anticipation Of a further
and more extensive break in prices than
actually took place. But IN some OF
the other departments which have
rather Jagged behind lately the buying
movement was as enthusiastic as ever
| and the advances were just as con-
spicuous. What made the session con-
fusing from the viewpoint of expert
enced obeervers. however, were the indi-
cations Of q shifting of interest back
into the oil stocks and higher priced
rails, 1t was noticeable that while the
market was undergoing readJustment
during the first half OF the day Reading
and other standard rails recovered their
preceding days losses somewhat more
rapidly than the rest OF the list and II
was also noticeable IN the last half OF
the session that there was a decided
shifting of interest 10 such issues as
Ohio Cities Gas, Sinclair Oil and the
food stocks, which were supposed to have
lost much OF their favor with the
| speculative public some time ago.
The money market was a great deal
easier in that money did not go above
and 81 per cent. during the day
Otherwise there was not much change
nor is there expected to be Cor some time
to come. 1t rs not expected that any
such situation as was witnessed during
Tuesdays market is likely to take place
again in the immediate future, but
bankers expect firm money 70 continue
| until the tax instalments have been paid
| in the middle part of the month and
the July dividend disbursements have
been completed. These developments
while they are not expected to bring
about any sych declines as took place
| in the market on Tuesday. nevertheless
| are expected to restrain speculation to
some extent. There was very little
change In the foreign exchange situa-
ton. Sterling was somewhat firmer,
but francs and lire continued weak. and
some of the neutrals lost ground during
the day.