The sun., 1919-11-02
FINANCIAL NEWS
AND COMMENT
Market Continues to Advance
in Disregard Of Develop
ments in Strike.
LACKAWANNA IS FEATURE
Bank Statement Shows Gain in
Surplus Reserve for Week
of $12,552,000.

In yesterdays short session OF the
stock market Wall Street again pro-
caeded to register very emphatically its
disregard Of the coal strike situation.
The whole market, just as was the case
on Friday, and also on Thursday. opened
up very strongly and proceeded to move
forward sharply until the closing hour.
when the usual week end selling on the
part of timid traders, who make It
rule never to carry stocks over a period
of suspended animation. resulted in
slight recesslons all the way around.
This sort of selling. however. was only
of a surface character and involved
| nothing more than a few highly specu-
lative stocks, In which traders had rolled
up such large profits that they were un-
willing to take any further chances with
the possibility of adverse developments
over the week end to effect the future
course OF trading. The volume Of bust
ness was very large again, the scale of
transactions being well over the million
and q half share mark for a full Eve
hour session.
The fact that profit taking in the last
hour was somewhat heavier than ordi-
, nary was accounted for In large part
by the fact that Tuesday, election day.
/ is to be another holiday on the Stock
Exchange. Many professional traders
accordingly sold out their holdings yes
terday, as they intend to remain away
from Wall Street until the opening on
next Wednesday But for all that 1t was
still a very remarkable demonstration of
strength. With strike developments
seemingly very unfavorable and 20 per
cent call money still fresh in the mind
of the financial district from the ex-
periences Of the preceding day, It would
not have been at all surprising II the
market had opened or very consider
ably. As 1t turned out, however, there
was nothing more than a moments hest
tation at the outset. after which the
advance In the steels and specialties was
resumed very vigorously. There was
nothing new to account for this except
the markets own momentum and the
very favorable impression created on
Friday by the markets failure to sell OF
, in the face of discouraging new develop
ments. At least this was the explana-
ton Of the strength In commission
houses.
As on Friday, the leadership Of the
market was In the steel shares. Under
| the lead Of Lacl1awanna Steel. which
went to new high record, the whole
list bounded forward again very enthu-
siastically. There were very wide ad-
vances in few specialties. and even
Steel common got going for the first
! time since a week ago yesterday. An
other very prominent feature Of the day
| among the stesls was Sloss-Sheffield.
| which made a net gain of more than
eleven points for the two hours trading.
United States Industrial Alcohol was
also q very strong spot among the spe-
, cialties. The rest OF the list followed
the steels shares. but later In the day
sold Off pretty generally on profit TAX
ing, which was continued almost up to
the close. The result was an irregular
price list at the finish, with most stocks
showing fractional net losses. which. on
the other hand, were overshadowed by
some very large net gains in a few
such issues as Lackawanna Steel, Indus
trial Alcohol. Sloss-Sheffield. Republic
Motors, &C.
The bank statement disclosed an in
crease of surplus reserve amounting to
| S12,552.000. This gain resulted from a
gain In cash reserve Of members banks
| in the Federal Reserve Bank, totalling
s1S.6S4.000. only partially offset by a
s50.000,000 rise in deposits There was
| an expansion In loans exceeding sS0,-
900, 900. but this was in turn otfet by the
heavy Withdrawals OF Government de-
posts during the week. the net change
being decrease in excess Of $50, 900. 900.
There was nothing special In the foreign
exchange market. but considerable
favorable comment was heard among
brokers over the success of the new
British loan and the indications that
money conditions would be easy this
week.