The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-17
FINANCIAL NEWS
AND COMMENT
Broad and Emphatic Turn Of
Strength in Rail Issues
Features Trading.
ACTIVITY rs EXPANDED
Price Movements in Standard
Steel and Minor Industrial
Stocks Are Confused.
ACTIVITY rs EXPANDED

Activity of a constructive sort ex-
banded in the stock market again yes
terday and the day was further sig
nalized by the broadcast and most en-
phatic turn of strength which has been
experienced In the railroad shares thus
far. There have been other days dur
ing the current upward movement on
which certain groups Of rails have
been taken UP by various cliques and
pools. but yesterday was the first day
that there was practically no exception
to the forward movement in 80 far
as the railroad shares were concerned
At the same time. while the share list
in this direction exhibited an underly-
Ing trend in the direction of further
Improvement with the possibilities Of
greater breadth and activity, the move
ment OF prices in the standard steels
and minor industrials was confused and
banning. These issues, to be sure, have
experienced more OF rise than most of
the higher priced rails. but there
seemed to be more than the usual
amount Of selling in them yesterday and
on the whole they presented O rather
unsatisfactory appearance.
Indeed, II 1t had not been for tho
railroad shares and the manner in
which thev-higher priced standard is-
sues sustained their advances yester-
days session undoubtedly would have
been considered disappointing. The
selling was heavy all through tho in
dustrfal list and in the main furnished
rather complete justification for the
voices which have been raised against
excessive speculation being carried on
In these stocks regardless of the ex-
tent of the advances In some of the
most favored cases. In SO far as the
railroad shares were concerned It was
an entirely different story. These is
sues have not participated in the move
ment, that Is to say. to the same ex-
tent as have some of the other depart
ments, and the present level OF prices
hardly compares with that of previous
years Notwithstanding an advance of
some SIX points in the statistical aver
ages in the past few weeks. What was
most important yesterday in regard to
the railroad shares was the character
OF the buying reported in various COM
mission house circles. Not all of the
reports Of large foreign reinvestment
In railroad shares could be said to
have foundation. but at any rate there
Is very large proportion of high grade
investment purchases mingled with the
speculative purchases and the buying
reported to be going on in behalf of va
rlous cliQues and pools which have
turned from the industrals to the rails
The theory on which all Of this buying
Is taking place. Of course, Is that there
VIII be some sort Of improvement shortly
IN the outlook for the railroads With
Congress called into extra session for
next Monday the bills already prepared
for relief of the present financial Difficult
ties 1t appears as though the railroads
were coming back into the same specula
tive favor which they enjoyed prior to
the beginning OF the boom in the war
stocks and various industrials with the
beginning OF the world war At any
rate. all OF the old line investment issues
such as Reading, Union, Southern Pa.
cific. Atchison and Norfolk and Western
were more favored yesterday than they
nave been for many months back, and
some OF the low priced issues were al
most equally conspicuous. There was
buying of the most important character
in such stocks as Rock Island. Missouri
Pacific. Texas and Pacific, Southern Rail.
way and Pittsburg and West Virginia
Among these issues there was one par
ticularly strong feature. This was St
Paul. The steel shares, while they did
not do very much during the day, held
fairly strong, but their stability was no,
OF the character that encouraged senti.
| ment, nor was that in the cases OF the
| other specialties and Industrial issues.
lne money market was easier and
showed indications of returning to q
normal basis. The banks have abou,
completed their preparations for the in
! stalment due on the Victory Loan or
| next Tuesday. and there is very lrttl.
likelihood of any further stringency ir
| this direction for the present at least
With the speculative community's in
| terest centred In the railroad shares
| very little attention was given in stocl
market circles to the very sharp break.
that continued in the foreign exchange
| market. Francs and lire both went tc
new low records. There was no new
explanation of this. All OF the foreign
| nations are in need of credits in thi.
| country but there can be no steps taker
| until the peace treaty has been finall,
signed In consequence there Is nc
| solution of the present difficulties unit
some Of these credits have been arranged