The sun., 1919-10-09
FINANCIAL NEWS 7
AND COMMENT
Market BrOadens as Interest
Returns in Steel and Stand
ard Stocks.
DEALING<IS VERY ACTIVE
Traders Desert Rails and Turn
Back to Industrial
Group.
DEALING<IS. VERY ACTIVE

Stock market trading started out yes
terday along the same line as on pre-
vious days this week. with the specialtes
moving forward sharply and the standard
stocks tagging. but before tho session
had advanced very far the strength
spread to the entire list. Tho conspicu-
Gus features OF the trading were the steel
shares. whose strength was q consider
able surprise to those who have fol-
lowed tho market recently and have
taken the view that, although the strike
question has been won so far as the Steel
Corporation is concerned, II is likely to
be long time before operations can be
resumed In full. Whether or not this
view 10 correct, there was no question
yesterday that the steel strike has en-
tirely lost its influence not only on the
stock market as a whole but also upon
the steel shares, whose Inactivity re-
Gently has been laid directly to the un-
settled conditions in that industry and to
the desire of Wall Street to take up new
speculative specialties.
There was no special news to account
for the sudden outburst Of activity Ii,
these issues The money market, II is
true. was not quite 30 unfavorable as on
immediate preceding days this week. nor
was there any uncertainty about the
Presidents condition; but on the other
hand, the steel strike situation was un-
changed In addition to this the market
had to contend with the definite state
ment that the Director-General of Rail-
roads would not entertain any sugges-
tions for an increase In freight rates so
long as the roads remained In the hands
Of the Government. There may have
been some satisfaction in the suggestion
that briefs be prepared to be submitted
to the Interstate Commerce Commission
Immediately following the turning back
Of the roads. but Wall Street has had to
much experience with the Interstate
Commerce Commission in connection
with previous increased freight rate pro-
posals that 1t found little ground for
encouragement in this suggestion yester-
day. Rather 1t was inclined to take the
view that II the Government refused to
grant increased rates at the present time
there would be practically no hope of
convincing the Interstate Commerce
Commission later on.
The only explanation of the remark
able advance in the standard stocks un-
der the circumstances was that the trad
ing element had decided to abandon its
hopes of a movement in the rails and
turn back to the industrials in spite OF
the steel situation. At any rate II this
was the theory on which the ma rket i'm
proved it was entirely successful. for
Steel common got up &c l10 for the first
time since the steel strike began and all
other steel shares gained proportionate-
ly Tn the other hand. tie recent spc cu-
lative favorites among the specialties
were very largely neglected--that is to
say, with one or two exceptions. The
outstanding exception in this group was
American Wool. which continued its
rapid Improvement, going to a new high
record for all time. However, such is
sues as Worthington Pump and other
issues OF the same character, which on
Monday and Tuesday attracted SO much
attention. we're neglected and under the
pressure OF profit taking. Another in
stance Of the broadening of interest in
the trading was noted in the tobacco
stocks in which there were indications
of a revival of speculative interest. In
this group Retail Stores became active
again. but American Tobacco reacted.
The money situation appears as firm
as ever on the. surface of things. but acs
tually there was a considerable improve
ment toward the closing. II was learned
that approximately SIS 100000 went un-
loaned at the closing. which marks the
first time in several weeks that there has
been any such surplus OF funds. What
this means unquestionabiy is that the
worst of the money stringency is over
II may have been also that the stock mar
ket community learned OF this condition
OF affairs early in the afternoon and that
this was the real reason for the sharp
outburst OF speculative activity In the
afternoon. The foreign exchange mar
ket was again featured by heaviness of
leading fates. Sterling was especially
weak, getting down to about s4.1s. Other
rates naturally moved downward in
sympathy with the selling of sterling.