The sun., 1919-04-15
FINANCIAL NEWS
AND COMMENT
Announcement of Victory
Loan Terms Stimulates Ac-
tivity in Market.
BUYING TAKES NEW START
Bonds, Especially Liberties,
Feel Influence and Only
3 1-2s Fail to Advance.
BUYING TAKES NEW START

Overnight announcement of the terms
Of the new Victory Loan provided the
material influence in yesterdays stock
market. These terms. while not alto
gether unexpected, did what other fac
tors failed to do last week, namely. in
fluence a resumption Of the buying move
ment which broke of with the reaction
several days ago. All thought OF other
considerations. such as the steel situa-
ton and the coming meeting Of the d.
rectors Of the Steel Corporation later in
the month, was sidetraoked for the time
being. and traders proceeded on the the
Dry that whatever happens in this con-
nection, one thing 10 certain, that the
new loan will be heavily oversubscribed.
The strength of the market was again
rather one sided, but at the same time
there was moro breadth TO the market
than in recent sessions, and tho list as
whole made more progress than has
been characteristic Of II lately. Trading
was maintained on the million share
scale, and business was fairly we'll dis
tributed throughout the five hours of
dealings
Aside from the rate of interest on the
new loan the most gratifying thing in
the announcement was the amount Of
the loan and the definite statement that
this will be the last Government offer
ing. In the first place, the amount as
now fixed means a reduction Of rs per
cent in the amount which Wall Street
has been looking for. In the second
pace, the definite statement that there
would be no further financing brought
the first real assurance that hereafter
business will be able to proceed without
interruption Of Government loan CAM
paisns. The terms of the loans were
49,. 49, "
feeling In this connection has been all
along that the terms of at least one
class Of the notes should be in tho neigh
borhood Of ~ per cent. II It were in
tended to make a real distribution of the
notes In 30 far as the stock market
was concerned, the terms were consid-
cred as extremely bullish for several
reasons. On one hand 1t has been felt
that there is very little danger of the
new loan affecting the market price of
outstanding Issues. and on the other
hand. the present terms warrant the be-
lief that there will be no need of the
banks taking a majority of the new
notes.
This latter consideration was ono of
the features which Wall Street has
feared most in that 1t was realized that
IL the banks were forced to take a
large part of the loan there would in
consequence be a curtaliment Of stock
exchange borrowing activities. This
clearing up of this consideration was
Of course the thing which the market
reflected most yesterday Specialties
again gained ground more rapidly than
some Of the standard issues, including
the steels but the strength OF the lat
ter. nevertheless. was gratifying to ex-
perlenced observers. as we'll as the
rapid advances of General Motors, At
lantic Gulf and Sinclair Oil. These
latter issues made spectacular gains,
especially General Motors. The advance
in this stock in face of bearish reports
which gained circulation Saturday was
distinct surprise to the speculative
fraternity, which had anticipated some
thing like a reaction yesterday. Per-
haps the most encouraging thing about
the days dealings. aside from the
strength in the stock list, was the re-
vival interest in the bond department
The whole bond market felt the slim
ulus of the terms OF the new loan, par
t'cularly the outstanding Government
issues, All OF these went higher with
the exception OF the 3 as. These were
heavy on the theory that there might
be some shifting from outstanding is
sues into the new loan on account Of
the higher rate of interest.
The money market was practically
unchanged throughout the day Call
money continued Arm. as it Is expected
to do until tho next loan is we'll out OF
the way.