The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-15
Z
FINANCIAL NEWS ~
AND COMMENT
Market Broadens Again, With
the Demand for Railroad
Issues Continuing.
LEVEL OF PRICES HIGHER
$50. -.
Advances in Steels Reflect Re-
vival Of Enthusiastic
Buying Movement.
LEVEL OF PRICES HIGHER

1t was another day of exuberant
strength in the stock market yesterday
and the standard steels and rails con-
tinued as features. In this respect the
market offered a more normal appear
ance than last week, when the specula-
ton was almost exclusively devoted to
the oils and specialties Despite the
obvious weight of much profit taking
and other selling pressure, the level Of
prices was again carried substantially
higher. and the continuation of a good
inquiry throughout the day for thekails
and steels tended to encourage the bull
ish sentiment, whereas the concentration
OF activity in limited number of indi-
vtdual shares last week had caused much
misgiving as being utterly abnormal.
The way these issues and various others
went ahead was suggestive of the Iona
expected movement in the standard
shares. Yet there was still a good deal
of conservatism In financial circles In
spite of the fact that the volume Of
transactions aggregated the largest total
that has been turned over on any day
thus far this year.
AT any rate. 1t could not be said there
were any indications in the course of yes
terday's stock market session OF any
letup to the public speculation that has
been under way for the last three
months On the contrary, there was
every sign that not only Is the volume
of outside buying being sustained, but
the demand for the higher priced stand
ard issues is actually increasing. There
was no new development to account
for the strength in either the steels or
rails Certainly no movement of the
| proportions Of yesterday could be based
upon what Is actually taking place In the
| steel industry at the present time. APP
| parently the public is shutting Its eyes to
| the present difficulties and discountins
the prosperity which everybody is talk
ing about for the future. At least this
| Is as plausible an explanation Of the
movement as any other Whatever the
| explanation, the buying yesterday in both
| the rails and the steels was of an ex-
| cellent character and something more
| than the usual running in of shorts
which were put out earlier in the move
| ment in anticipation OF a reduction in
| the dividend of Steel common. The man.
ner in which steels were marked I'D at
| the same time was suggestive Of a re-
action later in the week, but the really
| Ing sales were exceptionally we'll alb
] sorbed and there were no definite indi-
cations of any setback for the immediate
future in sight at the closing o.
The strength of the rails seemed to
be somewhat more substantial than that
OF the steels In that 1t is known to have
reflected important accumulation that
has been going on for some time. All OF
the higher priced dividend paying issues
| including Southern Pacific Reading
Union. Atchison and even some of the
lower priced shares OF the type of New
Haven, ST. Louis and San Francisco and
others participated in the days move
| ment. But they were not the only fea-
lures Of the day by any means While
! the buying of the steels did not appear
| as substantial as that in the case OF
! the rails, the advances in the steel groul
were even more enthusiastic than the
| rails. Steel common reached a new
high for the current year. Lackawanna
made an especially marked improve
ment, as did both Republic and Midwife
Another group OF stocks which came in
| for more attention than they have re.
ceived of late was the local traction
shares, nearly all of which closed the
day substantially higher, Also just
when 1t was thought that the speculs.
| ton In the oil shares was about over
fresh buying appeared in Sinclair Oh
and the Royal Dutch shares. These Is.
| sues were not as conspicuous as some
OF the other groups. however.
AS was to be expected, the money
market was frmer. Call money loaned
| az high as IN per cent. new high fol
the year in the case of the rate TO,
loans on mixed collateral. This was in.
terpreted in some quarters as being ar
/ Indication of an application of the
brakes on the part of the banking fra
ternity, but investigation failed to re-
veal any such intention in case Of the
moro important fancial institutions
What the rise in money rates actually
| reflected are the preparations under way
for the second instalment on the Victory
Loan.