New-York tribune., 1919-09-08
In Wall Street
After rising for a fortnight, secu


ance Of the Steel strike issue. Sam
uel Gompers's telegram to President
Wilson asking to be informed by to-
morrow whether q conference with
the officials of the United States
Steel Corporation could be arranged
unsettled the market, and large
part of the gains made earlier in
the week was offset. However, on
the average, industrial stocks were
point higher at the close last
Saturday than at the last sales be-
fore the triple holiday over Labor
Day. Railroad stocks, on the other
hand, lost approximately ~ points.
In the face of the we'll known dis
turbing factors, the Federal Reserve
Board, in its monthly review, OBJ
served that at bottom the nations
business was sound.
Speculative energy had free play
in several issues last week, and
fluctuations were exceedingly violent
and seemingly out Of relation to
genuine economic changes. Crucible
Steel, which during its kitelike
career rose to 194M points last week,
turned about, and closed on Satur-
day at 168la. Brokers explained the
break as a reflex of a private settle
ment which they asserted shorts in
Crucible made after the close of the
Stock Exchange on Wednesday.
Baldwin Locomotive was a close sec
ond to Crucible in point of wide
swings during the week.
No substantial turn for the better
took place in the bond market last
week, where Liberty bonds, irregular
IN their course, occupied most atten-
tion. Public utility issues were
notably weak, dropping almost 2
points on the average. Industrial
bonds revealed no consistent market
tendency in either direction, but
railroad bonds were perceptibly
stronger.
Easier money conditions and per-
haps better market in Liberty
bonds are foreshadowed in Secre-
tary Glass's announcement that "the
turn of the tide in war and post
war financing has come. He calls
especial attention to the favorable
cash position of the Treasury, which
Will probably improve this month,
because, as the Secretary predicts,
ordinary receipts should exceed ordi-
nary and special disbursements by
approximately 100000. The
programme of issuing sclni-month-
ly loan certificates will be aban-
doned at least until October IS, and
the offerings, if they come, will be in
reduced amounts. Instead, TWO sets
W e'e-> NoA eliiN'tCH, Ollc dlurlUS IN
six months and the other in a wear.
Will be put out. The earlier ma
turity will bear Az per cent in
terest, marking the first issue offered
at less than Az per cent interest in
more than a year. Moreover, both
these issues will be automatically
liquidated by tax payments, obviat-
ing the need of refunding operations,
which merely postpone the day Of
reckoning. In tie opinion of bank
ers, this new policy Of the Treasury
marks the first step in the actual
paying off Of the war debt, and the
reduction Of the rate Of interest, in
dicating an improvement in the
Treasury's financial standing, should
react favorably on the market posi-
ton Of outstanding government bonds.
most of which yield a higher interest
return. Both the marked decrease
IN government spending and the de- /
cislon of the Treasury to depart
from its practice of issuing half a
billion dollars in loan certificates
every fortnight indicate less COM
petition on the part of the govern
ment with industry and the security
markets for credit, and easier monev
would seem to be a natural conse-
Quence.
The seemingly unending decline of
exchange rates on Europe lifts the