The sun., 1919-04-05
FINANCIAL NEWS
AND COMMENT
Under Leadership Of Rails List
Turns Buoyant During
Last Hour.
SOUTHERN PACIFIC LEADS
Money Is Much Easier and Is
Offered in Large Sums
without Takers.
SOUTHERN PACIFIC LEAD,

Further proof seemed 10 be furnished
by the action OF the stock market yes
| terday OF the confused state OF mind of
the Wall Street fraternity as to the
immediate prospects of security values.
On one hand, those who had consistently
maintained an optimistic attitude toward
the market from the long distance point
of view in face OF considerable profess
sional opposition and other selling pres
sure found themselves abundantly justi-
fled by what happened in the last two
hours of business While on the other
hand, those who have depended all along
mainly upon technical considerations for
their Guide in making commitments and
have chosen to disregard the Indications
OF broadening out of public interest
into the dealings appeared more con-
fused than ever. For. starting with the
rails after some further selling at the
outset, the whole list strengthened again,
and in the last half OF the session pro-
ceeded to move forward with greater
case than at any other time this week.
Perhaps tho most surprising thing OF
all this was the emphatic turn of
strength In the rails in the last hour
These Issues have been relatively neg
lected in the upward movement for the
last month, and their strength was
source Of much satisfaction to those who
have consistently maintained that these
issues eventually would come in for
more serious consideration at the hand
OF speculative Wall Street. The imme-
diate incentive In bacn OF the strength in
this department was short covering, but
there also seemed to be a certain amount
OF other buying Of a fairly good charac-
ter. This was based more upon the fact
that these issues have been neglected in
the recent rise, however, than upon any
other factor, for in reality there was
nothing new of any Importance so far as
the rails were concerned. Otherwise the
whole situation remained just as 1t has
all 'along-a source of great confusion
to the majority of Wall Street interests
The steel situation seemed to have lost
much or Its influence on the market
and no further talk was heard In specu-
lative quarters as to what may be ex-
pected In case 1t turns out that Director
General Illness refusal TO recognize the
steel prices has the effect of doing away
with the whole Industrial Board OF the
Department of Commerce and the price
fixing plan as we'll
The leader in the rail group was
Southern Pacific. Starting with this issue
the whole list gathered strength and Mt
the closing the general market had not
only recovered most of Thur sday's losses
but had on the other hand made substan-
tial gains In the case of the more prom
trent issues. There was no news to ac-
count for the gain In Southern Pacific
any more than there was for the
strength of the rest of the market. The
question of an early decision Of the
Southern Pacific suits was brought for
ward again as an explanation. Just as
1t was last fall. and SO were the marked
Increase in earnings Of the Associated
| OIL Company, which Is controlled by the
Southern Pacific through stock owner
| snip. None of these explanations, how
ever, seemed TO have much foundation
except those which related to the fresh
| speculative buying which has come from
| a group OF traders who were largely re-
sponsible for the sharp rise in the stock
last fall. The strength in this issue
| naturally brought about sympathetic
gains in the rest OF the rails, including
in particular all of the higher priced
| issues. In the steel group leadership
shifted back to Steel common, which
| closed the day within a fraction of a
point of its previous high of the week
The money market was very much
easier than during the early part of the
| week. Call money loaned down as low
| as per cent in the afternoon, and ac-
cording to reports from the floor Of the
Exchange. more than s10.000,O00 went
unloaned even at this figure. Time
money continued frm however, and so
far as could be learned this large sup
| ply of this class of funds was available
during the day. There was consider
able demand early in the day again for
both sterling and francs in the foreign
| exchange market, but as was the case
on Thursday as soon as this demand
had been supplied the market eased OF.
Business continued very quiet In the
main