The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-30
FINANCIAL NEWS .
AND COMMENT
Disappointment With Steel
Report Causes Decline on
Heavy Selling.
MARKET STRONG IN SPOTS
Lower Priced Oil Shares Show
Better Trend and Marines
Make Recovery.
MARKET STRONG IN SPOTS

Response was Enthusiastically made in
the stock market yesterday to the very
general expression of Disappointment
over the result of the Steel meeting at
the close OF business on the preceding
lay. Throughout the session there was
manifest commission house selling of
the Steel shares. which converged more
on the rest of the industrial list. Trad
ing was on an increasing scale as con-
trasted with the average OF recent ses-
sions. but in the last hour 1t became ap-
parent that the professional element
had again succeeded in overselling the
list. and there was a tirmer disposition
at the closing. This strongly suggested
that most OF the liquidation occasioned
by the disappointment over the Steel
meeting had been completed. and, more
over that any further selling of the
market might be expected TO bring about
condition that would work for higher
prices throughout the general list.
Further consideration of the state
ment revealed the fact that Wall Street
as unusual had been more pessimistic
about the situation than conditions ac-
tually warranted. Although Il goes
without saying that the current quarter
of the year will undoubtedly see a fur
Their decrease in earnings and, although
1t Is a question as to whether the direc-
tors will deem It advisable to continue
the dividends at the present rate. the
strong cash position of the corporation
was entirely overlooked in this discus
sion. This particular feature will not
be disclosed until the annual report Is
made public some time In April. but II
Is understood on good authority that
the net working capital will aggregate
more than 100000 900, or approx
mately the value of the common stock
outstanding. In the last annual report
the working capital was placed at $780,
100000. after the deduction Of all taxes.
During the past year $4,000, 900 addi-
tional was added 10 the surplus account,
and it is practically certain thai this,
together with other additions, will'briny
the figure Substantially over the $780,
100000 mark. At least this Is the indi-
cation on tie basis of the quarterly re-
port for last year.
With attention still centred on the
steel statement. it was not TO be ex-
pected that Wall Street would pay much
attention to other news considerations
Neither the assurance that the long ex.
pected railroad plans VIII be forthcom-
ing shortly nor the rather optimistic
reports from the trade centres evoked
very much response from any quarter o!
the market. The big factor with the
market was the Steel report, and this
was manifested at the opening BY a
sharp over night decline on heavy sell.
ing, which became more pronounced as
the session advanced. In spite of the
weakness in Steel, there were several
, fairly strong spots in the market among
the speciality shares. There was a fur
Their running in of the shorts in Hide
and Leather and better tone was IT
evidence among a few OF the lower
priced oil shares. which have Jagged be-
hind recently IN the upward swing OF
the higher priced issues. The marine.
were also disposed to be strong. recov'
ering a small part OF their losses in the
two preceding sessions of the week as
result of the sharp cut in shipping rates
Despite the fact that the last pay
ment on the Fourth Liberty Loan viii
be made to-day the money market was
virtually unchanged. This payment
calls for 30 per cent, but as more than
So 500. 600. 900 has already been paid, the
aggregate payment for the whole coun'
try probably will be less than $500. 000,-
900. The amount from this district Is
so small that 1t is not expected to have
any effect whatever upon the money
market The foreign exchange marke,
was quiet, and with the exception OF
Spanish pesetas which were firm. rates
were not greatly changed from the pre-
cediug days closing. The easier dispo-
sition in neutral. however. continued
Swiss francs, euilders and Stockholm
being a trifle lower at the close. Cotton
reacted after the sharp rise on the pre-
cpdnR lay.