The sun., 1919-03-27
FINANCIAL NEWS
AND COMMENT
Stock Market Continues It's
Reaction, With Heavy
Selling in Steels.
BUSINESS IS CONTRACTED
Rise Of Call Money to z Per
Cent. Tends to Check the
Speculative Activity.
BUSINESS IS CONTRACTED

The reaction continued in the stock
market yesterday throughout the best
part Of the day and the downward
tendency seemed to be more strongly
emphasized because of the weakness
OF n number OF tho standard shares
and steels. Most OF that selling un-
doubtedly represented continuation Of
the profit taking from last weeks bulge,
but there also seemed to be further
selling from professional sources in
anticipation OF a more pronounced re
action than has been experienced thus
far. Primarily the impulse to sell Sc
curities came from the changed aspect
of the foreign situation. IN addition to
this there was certain amount Of
disappointment over the failure OF the
steel market to show moro complete
signs OF revival. and traders were in
clined to believe that this situation, to-
gether with the frming tendency Of
money rates. might produce some
temporary revulsion of the bullish
feeling that has prevailed in the fnan-
cial community for the last month or
moro.
All OF this, however, was merely
transitory sentiment. based for the most
part upon the immediate effect Of the
days news Developments. Az a mat
ter OF fact tho real reason for the con-
ttnued reaction was largely technical.
The market had had rise OF more
than points IN principal descriptions
at the close Of last week and II was
only natural that there should be SOME
what OF q reaction. Nevertheless the
fact was not to be overlooked that
there was some change In sentiment,
nor was this surprising in view of the
fact that the next Government loan
is now near enough TO be an important
factor In the stock market. There was
no disposition In conservative circles TO
change sentiment for the long range
viewpoint, but II was felt in certain
quarters that the market from now on
would begin TO reflect the proximity
or the Government financing operation
by a gradual curtailmept of activity.
In fact 1t was felt that II would eventu-
ally simmer down to the same kind of
trading AFFAIR that was the general
rule Immediately before the beginning
OF the last upward swing. The fact
tnat money was frmer was considered
direct reflection OF the necessity Of
further curtaiment of speculative sc-
tivity while the banks are preparing
to fioat the next loan.
Most OF the selling, as on Monday.
converged on the standard steels Those
issues were weak all through the trad
as could be expected in view of the lack
OF fresh incentive to stimulate activity
on the constructive side of the market.
All OF the steels went lower along with
the minor industrials. coppers and higher
priced specialties. The only important
exceptions to the rule were a number of
the food stocks. one or two OF the oils
and such individual issues as United
states Realty and Wilson & Co.. in which
there we're indications OF renewed actiy.
ity on the part of the pools and various
cHquea trading was again on a consid-
eranly smaller scale as contrasted with
the activity Of recent sessions This was
suggestive OF a further curtailment OF
business in line with the views in Stock
Exchange houses that trading should be
restricted from now until the next loan
Is well out OF the way. There was very
little OF interest in the bond market.
The only features were continued selling
or Government and foreign bonds.
hemoney market was distinctly fir1ner.
call rates going TO per cent. Just before
closing. This reflected the increase re-
Gently in the activity on the Stock Ex-
change and also the preparations for the
next loan on the part OF the banks. and
Is precisely in line with predictions by
certain bankers who have maintained
that rates would stiffen as the loan ap-
preached. Whether the frming OF
money was meant as an application of
brakes on the market could not be de-
termined. OF course. but 1t will undoubt-
eddy have that effect for the time being
at least. The foreign market was quieter
and rates were frmer than at any other
time since the British Government in.
structed its representatives in this mar
ket to discontinue the purchase of ster-
ling bills.