The sun., 1919-08-20
FINANCIAL NEWS
AND COMMENT
Prices Show Material RecOv-
cries, With Better Feel
ing In Market.
JOLTS GIVEN TO SHORTS
Closing Is Highest of Day
in Standard Stocks and
Specialties.

1t was a relatively active market on
the Stock Exchange yesterday and the
undertone improved considerably. al
though nothing such as might have been
expected to indicate a resumption of the
buying movement which broke off several
week ago. The whole list was stronger
from start to finish, and. despite the
fact that the Improvement was not pro-
nounced except I'm a few individual spe-
cialties, II appeared as though Wall
Street had gone through about the worst
of the liquidating movement, at least
so far as the present is concerned.
AS is always the case, a number of
groups moved contrary to the general
trend. but purely individual considera-
tions were at work to account for their
weakness On the whole. however. the
! market seemed to have reached the point
in the process of readjustment to which
everybody had been looking forward as
an indication that stocks could be re-
purchased again with some assurance
that the whole market structure would
not topple over at the slightest provo
cation.
Sentiment was still cautions. but gen.
orally speaking the Street was in much
better mood in speculative sense than
J It had been for the last week. The set
tlement of the local traction strike, to-
gether with the realization that after all
the steel labor situation may not be 90
bad as It has been pictured. tended TO
| inspire confidence in some direction. AT
any rate. II was felt that whatever de-
cision Is made to-day with respect to the
much discussed steel strike has been
more than discounted marketwise.
| Perhaps the most important considera-
ton during the day. to account for the
improvement in sentiment, was the be-
lief that the bears have had things al
together too much their own way lately.
: 1t was realized, for instance, that while
/ Wall Street has been trying to get its
! speculative bearings business has been
going on as usual and that stocks have
/ finally drffted back into strong hands,
at least the standard stocks.
The result was that yesterday when
/ ever the short interest tried to cover
commitments which had been put out
| Monday and last week they were forced
to bid up prices in nearly all cases.
Some further liquidation was expert
enced at the outset In the tobacco is
sues but once this selling had been COM
nleted the whole tone improved, with
; closing prices around the high of the
day in the standards and specialties.
/! Just as was the case on the preceding
day, whatever improvement was recorded
was due entirely to short covering. The
! come so large that 1t was comparatively
easy to run stocks up anywhere from one
/ to three points. Buying of an excellent
! character continued in the standard is
sues on a scale down, but not much OPP
portunfty appeared to pick UP stocks in
this manner yesterday except. of course
in the weak spots.
Steel common came back easily In
spite OF the strike talk: the equipments
If tl,ay had
! the preceding day. and the tobacco
stocks were weak features all day
United Retail Stores and Tobacco Prod
ucts were driven down sharply on sell
ing that appeared to be nothing more
than a concentration of orders by pro
fessionals and floor traders. AS a mat
ter of fact, whatever selling there ap
peared to be in any part Of the marke
seemed to be the work Of PROFESSIONAL
rather than the dislodging of any rea
stock.
Another sharp break occurred in thu
foreign exchange market, sterling making
another new low record, with prediction
that It might go as low as 81. DEMAND
sterling sold under $4.20, which mean
loss of more than 4 cents In the pount
from Mondays low. A similar declin
was recorded in francs and lire. but 70
some unexplained reason the Stock Elk
change took no notice OK the nuctda
lions, probably for the reason that 1t i
now apparent that bankers are disposed
to, let foreign exchanges find their nat
utal levels without resorting to tn
measures discussed In various financia
circles ever since the signing OF tn
armistioe.
Tho money market reflected agai
the curtailment of speculation and tn
cessation OF the wild bidding UP Q
stocks which characterized the securi
ties market some time ago Call none
loaned between $40 and AZ per cen
all day. and the supply was more tina
efficient to meet the demand, at leas
so far as the securities market wa
concerned. In connection with the none
situation, estimates we're auade yester
day that the loan account has now bee
reduced to about $1,000. 000, 900 as a re
suit Of the recent selling movement.