The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-31
FINANCIAL NEWS
AND COMMENT
Stocks Arc Upturned Gener-
ally on Heavy Covering
of Short Interest.
BUSINESS IS CONTRACTED
Steel Shares and Industrials
Gain, While Marine Issues
Continue Weak.

The stock market yesterday was
pretty generally devoted TO an absorb
ton OF speculative profits accruing on
the short side OF the trading In the de-
cline of the last two or three days The
bulk of the gains were made In the early
dealings. but the last hour was period
OF renewed \and further hardening af-
ter a long interval Of rather duh frr-
ness. The fact that the trading was
quiet was one of the most reassurinS
features, for 1t showed that although
the market Is specifically oversold, and
although the share list has been restored
to comparative soundness. in so far as
II can be under present circumstances.
a conservative regard Is being given the
momentous question. with which the
Washington Government Is struggling
and which do not as yet seem TO be ap-
preaching a final and speedy solution.
The net result at the close was a fairly
general upturn all around, which con-
verged more particularly, however, on
the industrial securities.
Undoubtedly the heavy selling move
ment of the last few days in the Steel
shares as a result Of the disappoint-
ment over the outcome OF the steel
basis for the movement. The fact that
the selling seemed TO have been largely
overdone probably also provided g fur
Their incentive toward the improvement.
In addition there also seemed to be a
batter feeling prevailing In financial cir
cles, which was traceable for the most
part TO more hopeful developments from
Washington. including particularly the
announcement with respect to the
euuipnenf r,roura NINA thu IL
during the current year. Moreover there
was an inclination to believe that, al
though the situation Is still one OF I'M
certainty. the country's industries are
being placed upon peace ,nS
rapidly than recent reports would indi-
cate. This came largely from the i'm
provement reported by the weekly trade
publications with regard to the steel
situation, which yesterday was reported
| TO be operating on a 80 to so per cent
basis despite all reports to the contrary
! This of course Is still far below the av-
! erage OF n month or so ago. but Il is
more satisfactory than Wall Street had
| looked for.
| The general market. however. was still
very much of a traders AFFAIR, and ex-
cept for such stocks as have been the
principal targets OF the bearish specula-
! ton there was little disposition to en-
1 gage in commitments on an important
| scale. This was especially true Of the
rails. In spite OF a marked Improvement
| in sentiment with regard to them they
| went practically unnoticed throughout
The day. II II had not been for the short
interest in the steels this would have
, also been the case OF the industrials. for
| aside from the short covering here the
most active interest in the trading con-
! tlnued to centre in the special.ies There
was further running in Of the shorts in
Hide and Leather. the ruboers and the
food stocks, all OF which showed some
Improvement at the close. The All
nouncement with respect to the railway
situation also tended to help the equip
, ments. Weakness continued in the ship
, ping shares, but the trading here was
quiet and the pronounced movement oil
several days ago was entirely absent
! The money situation was unchanged
In spite of the payment OF the last IN
stalment on the Fourth Liberty Loan
| and in spite of the additional burden
placed upon the financial machinery o.
the banks by the payment of the las,
offering of certificates OF indebtedness
There was not the slightest ripple of the
financial waters which could be laid &c
! these transactions. Call money loaned al
practically the came rate as all this week
| and there was no disposition TO cal
money, that is to say, so far as could be
learned. TIE foreign exchange market
continued quiet and firm save for kroner
| which weakened somewhat Tie Bank
| OF England statement disclosed pro
portion OF reserve to liabilities Of o01t
per cent, against 1890 per cent las,
week The bullion item showed an in.
crease OF so2JOOOo