The sun., 1919-06-25
Reaction Continues in Stock
Market, but Rally Comes
Near Closing.
TRADING is RESTRICTED
Steel, Most Specialties, Copper
and Miscellaneous Issues
SHARE in Recovery.

Stocks continued unsettled throughout
the best part. or yesterdays session on
the Stock Exchange. for no reason. how
ever that had not been apparent and
fully under discussion on the preceding
day. Primarily the impulse to sell Sc
curities originated in the disappointment
over the failure Of the market to make
better response to the acceptance OF
the peace treaty by the Germans but
actually the selling was the result of the
continued high rates for call money,
which rose again yesterday to per
cent. in the last hour. The average
trader. who threw his stocks overheard
yesterday and the day before, reasoned
that IL the market would not go I'D on
such faHorable news as the acceptance
OF the peace treaty II was an extremely
bad sign. whereas the fact that the mar
ket did not go up was nothing more than
might have been expected during the
week preceding July / dividend pay
ments and in which the probabilities are
that money will continue to act as a
! restraint to speculative operations for
some time to come.
In addition to all this there were a
number of rumors in circulation at one
time or another that tened to check
, whatever tendency there may have been
| In some quarters to resume the upward
| movement. One OF these had 1t that the
new German Cabinet had resigned.
| There was no confirmation OF this. of
course, nor did 1t appear to have any
foundation in fact, but nevertheless be-
fore the selling movement could be
| checked a number OF the higher priced
| specialties and standard stocks had been
pressed from one to two points lower
and more in some cases. But the reac-
| ton would have taken place anyway,
\ whether 1t was this report or some other.
for with the peace treaty having failed
to stimulate activity on the constructive
side Of the market II was not to be ex-
pected that such other news develop
ments as these would have provided
professional Wall Street with impulse to
| buy listed securities, at least so long as
there was any danger of a rise in call
money rates above the 6@6h per cent.
| level. The fact OF the matter is that the
stock market had drifted back into the
| trading position which everybody had
been predicting ever since the decline
started with the furry in the money
market two weeks ago. but the trouble Is
that 1t takes Wall Street Just as long to
see development of this character In
the market as II does to see that the
trend Of prices is definitely upward
So far as individual price movements
were concerned. 1t was practically the
same kind of a market that has been ex-
perienced for the last three or four days.
Tho only difference was. perhaps. that
the selling was somewhat more pro-
nounced during the forenoon than II has
been In the immediate past But at any
rate the market had a heavy appear
ance all day. and although there was
some improvement in the final period
under the leadership Of Southern Pacific
the market did not do more than regain
II part of what II had lost earlier in the
day. There were still a number OF
strong spots among the specialties. but
the outstanding feature of the day was
the quick movement of Southern Pacific
In the afternoon. which was based upon
a decision rendered In a small case IL
favor of the Southern Pacific. Inas-
much as this case Is similar to the biz
one concerning the California oil lands
traders naturally assumed that the other
decision would be favorable to stock
| holders when 1t comes. Steel partici-
| pated in the rally to some extent, as did
most of the specialties, the copper and
miscellaneous issues, but the market ap-
! peared to have lost much OF It's enthu-
| siasm and the rallies did not appear to
have nearly as much support as those
with which Wall Street has become
| familiar ever since the log forward
|
] There was no change in the money
situation. Opening at to ~ per cent.
| call money rose to and 9 per cent. In
| the last hour and the indications were
| that the market would continue firm I'M
| til at least after the July dividend
| payments have been completed. There
was much criticism heard in brokers' cir
| cles again about the high rate for money
| in view OF the fact that the money stu
alton is generally supposed to be very
| much improved and also in view OF the
| fact that the July / dividend payments
arc not to be nearly as large as ex-
pected, or rather as usual; but II this
criticism had any effect on those whose
business 1t is to regulate the money
situation, it was not apparent at the
closing last night. The foreign exchange
market. like the stock market. was I'M
settled again, with most important rates
closing lower Sterling lost somewhat
francs went lower, as did most of the
neutrals. italian lire. on the other hand
showed q slight Improvement over the