The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-25
FINANCIAL NEWS
AND COMMENT
Trading in Stocks Continues
Heavy and Strength Is
More Pronounced.
MOTORS RISE VIOLENTLY
Bank Statement Reveals Gain
in Surplus Reserve Despite
Federal Withdrawals.

Trading in yesterdays stock market
continued on an undminiehed scale and
strength was even a moro pronounced
feature than on Friday. There were
dealings in almost a million shares, and
the strength of the various steels, mo-
tors, minor industrials and specialt!es
again matched the breadth of the mar
ket and the range of interest in spite OF
the hevay profit taking and usual week
end evening up transactions that went
on all through the general list. The
steel shares for obvious reasons ware not
quite so prominent In the dealings as on
the preceding day, when Steel common
virtually monopolized the market. But
whatever was lacking here In the way
OF excitement was more than made UP
In the violence which characterized the
rise in the motor stocks. The way these
shares and various others advanced
demonstrated very clearly that, although
the oils and certain other specialties
have lost much OF their favor with the
public, outside buying in other depart
ments is just as important a factor as
ever.
The fact that the steel shares did not
occupy more attention may have been
disappointing in some quarters in view
of the overnight announcement OF the
awarding Of the rail contracts But 1t
was a perfectly logical development In
the light of tho preceding days advance.
AS a matter of fact 1t was rather re-
markable that the stock was able to
maintain It's advance so well. But what
ever may be the reason for this, there
was ample justification for those who
have consistently maintained a favorable
view of the steel situation in the an
nouncement which the Director General
| Of Railroads made at the close OF bust
ness on the preceding day. Next to the
decision to go back 10 n free market for
steel products the decision on the raj
contracts has been regarded as the one
big factor that would signaIze q re.
| sumption of steel buying on large
| scale. There has been some improve.
| ment reported already in steel circles
but unless all Indications go astray the
| final winding up of the rail contracts IL
| likely to mark the revival of the kind o;
| buying which Wall Street has been wait
| ing for all along. At any rate, 1t Is GER
tain that with prices being maintained
those who are in urgent need OF stee
cannot long hold Off II they intend tc
buy at current prices.
| There was nothing new to account FOL
| the strength of the motor shares. Wal
| Street has known all along that this in
| dustry was the first to feel the prosper.
| ity which everybody has been predicting
| for the whole nation There was agar
| a large number OF rumors about the
| merging OF several companies. but ex.
| cept for one or two OF these rumors II 1.
known that no new combinations are II
| the making at the present time. 1t wal
| curious that the financial district. know
! ing full we'll the present earning capac
ity of the motors. should Immediately
! revive the merger stories to account fol
1.-THE strength Of the various stocks. The
| marine shares were neglected again, a,
, were most OF the higher priced oils. AL
| Of the equipments were strong under the
! leadership OF American Locomotive. The
| minor steels. food stocks, specialties. II
fact everything with the exception OF
| the oils and marines showed substantial
| Improvement for the day. So far as the
| oil stocks are concerned, the past weel
| has pretty plainly demonstrated that
| they are not in the same favor with the
public rs they were in the earlier part
| OF the month.
The bank statement disclosed an in.
| crease in surplus reserve OF s4,4S9, 900 tc
| $54,157,5s0 despite the withdrawal OF
| S30,000,000 of Government deposits
| This was accounted for by $4,000. 00t
| increase in cash, accompanied by a de.
crease of Sls,196,0 900 In demand depos.
| It's But the most important thing ir
the bank statement was the contraction
| In the loan item. which showed a de-
| crease of $lS3,000. 600. This was as ex
| pected. for II has been known all alont
| that earlier in the week the banks tool
steps to curtail the specua ton in tn,
security market by tightening the reir
| on the money market. This was merely
a temporary situation. however. due I,
the strain on the banks which was in
volved In the second instalment on thu
| Victory Loan. which was paid last Tues
day. There was very little of interest II
the foreign exchange market The onl,
feature which made It different from TIL
preceding days market was that tn
majority OF rates were somewhat firmer
This was very gratifying to the banking
community after the weakness whicl
has been experienced In both francs an,