The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-19
SPECTATORS WAIT
FOR PEACE TREATY
Stock Market Is . Buoyant,
With Continuation Of Ad-
vances in Prices.
EXTRA SESSION A FACTOR
Optimism Over Railroad and
Industrial Outlook Shows
Steady Increase.
EXTRA SESSION A FACTOR
NJ WILLIAM Jusrus Borrs.

It Is q long Wall Street road that has
no turn to It. but the temporary selling
Of the highly speculative shares which
the stock market reflected last week
could not be called reaction. The
market at times evinced noteworthy
strength and the week a. q whole was
one of the most extraordinary that the
Stock Exchange community has seen
since the present rise. The situation was
made more interesting by the sharp rise
In call money rates, which was natural
enough In view Of the Arrangements by
the banks to finance the tremendous
payments to the Government. tomorrow
on account Of the Victory Loan sub
scriptions. A day or two Of or z per
cent call money ought not In itself to
upset the sort Of 4 buoyant stock mar
ket which Wall Street has been reckon
ing with 80 long.
The rise In call money rstes had in
reality scarcely any effect on speculation.
There was no heavy ceiling of stocks be-
cause Of IL and nothing to suggest that
banks had determined on q restrictive
policy with reference to acceptance of
Stock Exchange collateral The market
was Influenced by the foreign news and
fear that further hitch might be encoun-
tered In negotiations with German dele
gates. The fact that a dozen committees
had been appointed by the Allies to ex-
anime German protests and that vast
| amount OF technical data would have to
be considered in settling the questions
emphasized the difficulty OF the task.
Such delays were not unlocked for. but
1t Is not surprising that they should
nave been somewhat disturbing to a
market that had advanced SO violently
to the highest level Of the year. In
such a situation almost anything might
happen and the feeling Of many traders
seemed to be that II was wise to fortify
their position and safeguard profits
which they had cleared. ~.
Await Signing OF Peace Treaty.
The probability is that the speculative
community will await actual signing. of
the treaty before charging commitments.
| Any other course would disregard dar-
ger points OF a situation full Of explo-
| sive elements. Every one knows that
Germany must sign the treaty eventually
| and the strong probability is that the
| wiser ones In the councils of the Ebert
Government will see to It that the Allies
| are not forced to exert pressure to OBJ
tain necessary action. But Germany IL
with. Because OF tho show of rebellion
| at Berlin and resentful attitude In other
quarters suspense must continue until
| all formalities have been complied with
| For those reasons II Is not surprising
that the upward movement wavered tenn
porarily and that there has been some
lessening of speculative activity. Million
share markets are not the order Of the
day. and after a succession OF them. It lie
rot to be wondered at that Wall Street
| should take its bearings and see what
the trend of foreign events would be
likely to lead to. Such caution Is natural
even In an ordinary market. when con.
ditions are normal and world changes
are not impending. After the signing OF
the peace treaty the whole world can Sc,
Itself about the task Of readjusting every
branch Of the industry to a normal basis
A vast amount of business Is beine
held in allegiance until that action shat
have been taken. because although I,
Is foregone conclusion that the treaty
will be signed. the cautious business mar
Is not in a mood to take too much fol
granted in dealing with a situation thai
is fraught with 50 many uncertainties.