The sun., 1919-09-23
FINANCIAL NEWS
AND COMMENT
Markets Action Justifies Be-
lief That 1t Had Discounted
Strikes Effect.
STOCKS ACTIVE AND FIRM
Advance of Tobacco Features
Trading, With Steel Also
Showing Gain.
STOCKS ACTIVE AND FIRM


tanned that when the steel strike actually
came 1t would be found that the market
had about discounted the worst effects
found themselves abundantly justified by
what happened in the Wall Street mar
ket yesterday. Instead OF the weak and
highly sensitive affair which everybody
had been looking for In consequence or
the actual calling out of the men yes
terday morning. the financial community
had an active and fairly strong stock
market throughout the best part of the
day. a circumstance which fitted In pre-
cisely with the views of those who have
been following security values for the
last month and have taken occasion to
note how thoroughly stocks have been
liquidated by the public and the extent
to which the standard issues in partic-
ular have drifted back again into strong
hands. The consequences was that when
the event, which Wall Street had been
looking for came, there was practically
no stock at all for sale and the resultant
effect was very general advance all the
way around.
Had 1t mot been for the fact that
stocks had drifted back into strong
hands It would undoubtedly have been 9
very different affair altogether. Senti-
ment was very cautious and there was
practically no buying power at all at
the outset But when It was found that
stocks were actually scarce the effect on
the trading community was electrical
As for the steel strike itself. the hrst re-
ports to the financial community were
very favorable. It was seen from the
very first that thus far the labor leaders
had been very extravagant in their
claims as to the number of men who
would strike at their calling. That was
the one big outstanding feature. At the
same time, however. those In a position
to know the exact facts OF the situation
we're still very cautious about their state
ments. 1t was thought in some quar-
tsrs that there might be a temporary re-
vulsion Of the optimistic feeling regard
ing the strike to-day, when more definite
reports as to the number who have gone
out have been compiled. But on ths
other hand 1t was pretty generally oon-
coded that the market prepared for the
worst and that whatever the news may
be to-day there is very little likelihood
of another such break as those which
have been witnessed recently.
In any event, the impression which
the market registered yesterday was
very favorable from the financial point
Of view. The market did very much
better, although the strength was slow
in showing itself throughout the list as a
whole, professional operators apparently
believing 1t a better policy to examine
| their position before going with a gen.
eral advancing movement that might
| have to be undone again. Steel common
| in consequence was one Of the last stocks
| to make real progress. The rest OF the
list had turned strong before midday.
but 1t was not until the last hour that
theN market registered its definite opinion
4 hn,, 10 Ias wi
also its definite opinion about the steel
| strike. Then the market turned about
| completely under the leadership of the
standard shares and the tobaccos. which
\ had been strong features all day, went
| forward at quite an. exciting pace.
| American Tobacco, on top of its advance
| last week. registered another sharp ad-
vance to a new high, and United Retail
Stores was in excellent demand all day.
The money market was firm, as might
have been expected, on account OF the
deficit in RESERVE on Saturday. but 1t
was not until the final hour that the rate
| Jumped above per cent. Then cali
money loaned as high as per cent. The
| immediate cause of this. of course, was
| the deficit in reserve. but In back OF the
higher rates for Stock Exchange funds
also was the knowledge that there will
be very heavy withdrawal on the part
! OF the Government from the banks in
this district to-day and tomorrow. It
IS understood that to-day's withdrawal
will aggregate approximately $3.50, 0OO,-
600, and that to-morrows may be even
larger. SO that it is not anticipated that
money will go back to normal again
until the latter part of the week. The
foreign exchange market was distinctly
weak again at the opening. Sterling
went lower, but along with other rates
recovered most of its loss during the last
houf or so.