New-York tribune., 1919-10-06
In all Street


ended in July. Speculative interest
broadened as quotations moved upward,
and public participation in the trading
became the most active in weeks. The
rise continued in force with only minor
Interruptions as tho result of profit
taking until Friday, when the Street.
impressed with the seriousness Of the
illness Of President Wilson, took n
more conservative position with regard
to the market for speculative securities.
On that day a severe setback occurred
IN the standard industrial shares which
resulted in the wiping out Of sub
stantial portion of the ground gained
on the recovery earlier in the week. At
the close on Saturday the market was
still IN an extremely unsettled condi-
ton. There was, however, no demorali
zation, the market generally rejecting
uncertainty in the minds Of the specu-
lators as to what to do next rather
than fear of future Developments.
At the peak of the weeks movement
the average price of thirty represent
tativo industrial issues stood at 111.43
or less than three points under the
high record average price Of 114.4O
made three months ago. In other words,
the industrial shares had recovered all
but a relatively small part of the
August and early September. Fridays
setback resulted in a recession in the
industrial average to 10940. On Satur-
day it rose to 110.43 at the close of
trading. This compared with 110.47 at
the close of the preceding week and
1920 the low average for the year.
Fears aroused by tho strike of steel
workers the preceding week appeared
to have been mostly issipatcd by the
later developments. Wall Street early
came to the conclusion that the strike
would prove failure, and news from
the storm centres of the disturbance
tended to bear this out. In fact, the
opinion was held in important financial
quarters that another two weeks, pro-
viding the government does not inter-
vcne, Will see the restoration OF activ-
ties in the steel industry to about
normal. One Of the most significant
developments in connection with the
strike in Wall Streets opinion WAS the
failure of the labor leaders to call out
enough men at the works of the Beth
lehem Steel Corporation to seriously
hamper operations. The investigation
conducted by the Senate committee
the strike. indicated clearly. as was
shown by the testimony Of the head Of
the United States Steel Corporation
against which the strike is particularly
directed, that the issue is the open
shop against the closed shop. Rising
strength Of the steel shares, which held
strong until the news OF the Presi-
dents illness affected all market val
ues, was reelection Of the Streets con-
vlctlon that the open shop policy will
prevail in the industry.
Speculative activity extended to the
railroad stocks, where a stronger tone
developed for time on reports that
the powers that be in Washington are
disposed to grant the carriers another
- per cent advance in freight rates.
That would be constructive factor of
the greatest Importance SO far as rail
road securities are concerned, as such
| an increase in rates would mean the
! difference between surplus and O
/ deficit to many Of the large roads
Moreover it would place tho carriers in
much better position TO meet the
problems that will arise when they are
turned back to private control. in the
/ industrial share list numerous spe-
clalties, including tobacco issues, oils
motor shares, became the centres of
enthusiastic speculation for the ad-
vance promoted in many cases by
strong speculative pools. These op-
eratlons lifted the prices of many such
issues to prices overtopping the high
levels reached earlier in the year The
effect of this was to render the market
more vulnerable to professional selling
for the decline, which was heavy toward
the end of the week. In fact, little
of the selling on Friday represented
real liquidation by investors.
Tight money was q problem to the
stock market operators. although the
influence of the high rates for call
loans was not so great as might have
been expected. This was probably be
cause the financial district felt that
the stringency is only temporary, and
that another week will see a rcstora-
ton OF more normal market. Call
money rates touched II per cent sew
eral times during the week, and on Fri
day nearly S15,000.000 was loaned by
the banks at that figure out of total
of S33, 100000 in loans placed. Renewal
rates ranged between 6 and per cent
The tightening of money was bound
up intimately with the heavy shifting
OF banking funds incidental TO settle
mcnts for the end Of the September
quarter.
An idea of the volume Of the move
ment of money at this centre last week
may be gained from the bank clearngs
which exceeded the billion dollar
mark almost every day. Some interest
ing figures bearing on borrowing OPP
erations in the Stock Exchange cal
money market appeared, showing that
during the month of September broker
age houses obtained new call loans
h, S,n ff.n