The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-26
FINANCIAL NEWS
AND COMMENT
Trading Devoted Principally
to Evening Up of Trans
actions Over Week End.
REACTION Is MODERATE
Bank Statement Shows Drop
in Surplus Reserves Of
S18.5O0,000.
REACTION Is MODERATE

As was to be expected the actual re-
cepton in the stock market yesterday
OF the news that the money committee
had decided to abandon all speculative
restrictions was disappointing. The an
nouncement had been largely discounted
by the action Of the market on Fri
day, so that yesterday all that remained
to be done was a further running In
OF shorts at the outset on the part OF
those who for one reason or another
had been disposed to hold on until the
news was out. When that had been ac-
complished the market again assumed
some what more normal aspects. and for
the rest of the session trading wac
chiefly devoted to the evening up oil
TRANSACTIONS for over the period of sus-
pended animation and an absorption OF
profits which the recent bulge made
toe profitable to carry any longer. The
react ion was moderate, and altogether
about what was to be expected after
the sharp rise in stocks for the last
three days
The announcement OF the removal OF
restrictions, however, was the cause OF
wide assortment OF opinions as &c
what could be expected of the marke,
in the future. In some quarters it was
recalled that the money committee itseli
had come out openly bearish as re-
CARDS the market and that, moreover
with tive dissolution of the money pool
| the speculative market would have &
| depend upon its own resources when.
ever there happened to be a furry IT
| the money market 1t was also recalled
that this pool had played an important
part in the financial transa ctions il
the last few months. and that hence
forth no further help could be expected
+ from that quarter. But all in all thu
action was considered favorable in con
| serNative circles as indicating a Eradua
return of conditions to normal. What
! ever effect tight money may have upor
the trading in the future was considere,
more than Offset by the definite knowl
edge that funds will be forthcoming TO
the brokerage community whenever the,
are needed. The rates. of course, ma,
be higher than at the present time, bu
that feature in turn. II is contended
should attract considerable funds from
out of town institutions to New Yorl
for loaning purposes.
Undoubtedly the proximity OF the Stee
meeting next Tuesday also had a. re
straining influence on speculation. 1t /
| generally expected that the action of tn
directors Will be in line with what Wal
| Street had been anticipating, namel,
| either cut to 10 per cent. or a continue
| uon or the rate at the present figure Blu
| the uncertainty was enough to put a gu.
etus on the market after the bulge at tn
! outset, and when further buying was no
forthcoming The professionals turned &
the selling side again. They were falrl,
| successful in n number of soa>ia Il, az
particularly OF the type OF Mexican Pc
| troleum IN which cases they were aide
! somewhat by the days news. In TIL
case of the steels and standard shares
gains recorded in the movement on Fri
day were well sustained, although what
ever Improvement was made at the out
set was more than wiped out before tn
session was over Steel common for in
stance. sold as high as "a shortly afte
the outset hut in the reaction that fol
lowed lost all of that gain and a fractio,
OF point besides.
| The weekly statement of Clearin,
| House members disclosed a decrease il
surplus reserve OF slS.50O, 900. This wa
due entirely to a reduction of $4,000 90
! in reserve credits with the Federal Re
| serve Bank of New York The loan item
showed decrease OF s3l. 300 600, an,
| the deposits likewise a decrease of SAB
| 100000. The foreign exchange marke
| was quiet again Neutral rates wer
slightly easier. Francs were firm wit
| a slight advance in checks. Bank clear
| ings for the week totailed s7,l2l,537.6s
against s7.635,lO6 g36 last week, an
s5,553,56l,l76 in the corresponding wee
year ago. Cotton was quiet and FIR
as were corn and oats.