The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-24
FINANCIAL NEWS
AND COMMENT
Steel Reaches New High for
the Year in Sales Represent
ing Fourth of Days Trading.
MARKETS TONE IMPROVES
Optimistic Predictions OF
Judge Gary Act as Slim
illus to Stocks.

Whatever doubt there may have been
In Wall Street on Thursday as to the
ability OF the stock market to continue
its advance disappeared entirely yes
terday. Starting with the steel shares
and one or two of the specialties, the
buying movement broadened out again
as the session progressed. and at the
closing amounted to almost a complete
rout of the short interest. particularly
In Steel common itself. There was fur
Their short covering throughout the list
and nearly all of the Industrial issues
shared In the movement. But the real
Interest. OF the day converged on Steel
common. which rose to new high
record for the year on a volume of
business that aggregated nearly a quar-
ter of the entire turnover for the day
This was one of the most reassuring
things about the dealings, for although
the advance m Steel appeared to be too
fast to be maintained Il nevertheless
gave a tone Of quality to the market
which has been conspicuously lacking
ever since the business began to be al
most exclusively devoted to the oil
shares and the speculative specialties.
The immediate incentive for the rise,
OF course, was the optimistic statement
made by Judge Gary before the MEM
GERS OF the American Steel and. Iron In
stitute. OF all the statements which the
head OF the Steel Corporation has made
since the signing of the armistice this
was by far the most optimistic. II is
not very often that Judge Gary goes be-
ycnd the steel industry to point out the
prosperity which lies ahead for the
United States. nor is 1t often that Wall
Street throws aside all caution. even
t0h fha
an important source. But yesterday the
financial district threw all doubts aside
and proceeded to mark up Steel In a
manner that has not been witnessed
this year in any other department with the
exception Of the oils. Coming at a time,
too. when the financial district was
somewhat uncertain over the immediate
future of the market the complete
about face in the market was all the
more surprising. This was clear from
the action of the stock in the last few
minutes of the day. Perhaps the most
remarkable thing OF what Judge Gary
had to say was his prediction that the
steel business would break all records
this year. There was considerable doubt
as to the accuracy of this prediction.
but there was no question as to its in
fucrce on the market.
1t was this statement that provided
the most disagreeable shock OF all for
the short interest. They had been cell
ing Steel common all along on the theo-
ries that there would be no revival of
buying OF steel products until at least
the last quarter of the year: that the
tonnage statement next month would
show 4 greater falling of than ever in
new bookings: that the Railroad Admin
istration would refuse to accept the bids
for the rails order, and that in short the
steel industry was actually losing ground
instead of gaining. Whatever doubt there
may have been heretofore there was no
question last night but that there has
been improvement in the steel business,
and that moreover last month saw the
last great falling off in orders on hand
at least Of the Steel Corporation There
was not the same amount of activity nor
as great an interest In the rest OF the
market as there has been heretofore, but
this was easily explained by the atten.
ton that was devoted to the steel shares.
Still most of the active stocks were
Strong and closed the day with a SUBJ
stantial improvement.
The money market showed a distinct
improvement. Call money loaned down.
to about the low of the year, and the sup
ply available was larger than at any
other time since the preparations began
for the payment of the second instalment
on the Victory Loan. This reflected the
return of a considerable amount of
money to the banks as well as a further
Improvement In the reserve position OF
the banks in to-day's bank statement In
this connection II is also expected that
there will be considerable curtailment
in the loan item as a result OF the slow
ing down Of activity in the earlier part
of the week. The foreign exchange mar
ket also showed a distinct Improvement
Sterling was stronger. and there were
Indications that the most important part
Of the selling in francs and lire had been
checked.