The sun., 1919-07-22
FINANCIAL NEWS
AND COMMENT
Reaction Continues in Stocks,
With Downward Tendency
More Emphasized.
RUMORS WEAKEN MARKET
Selling Pressure Against Steel
and Some Specialties Is
undated.
RUMORs WEAKEN MARKET

The reaction which began in the stock
market last Thursday continued I'M
abated in yesterdays session. and the
downward tendency seemed to be more
strongly emphasized by reason OF the
weakness in a number OF the standard
stocks which heretofore have held their
ground fairly well in face of the opera
lions on the selling side OF the market.
Primarily the reason for the continued
selling OF stocks was the unfavorable
impression created by the news develop
ments over the week end, but actually
| the impetus was the same as last week,
namely a realization of the weakened
technical situation and a desire to bring
about a more stable condition of affairs
| within the market itself. The markets
pac1 last week had been entirely too fast
to re maintained. and what happened on
both Friday and yesterday was what
| everybody had been looking for as an in
dication that stocks could be purchased
| again with a degree of assurance that
the inside structure would not topple
over at the slightest provocation.
The reason that yesterdays decline
was so pronounced In some cases was
that added to the general desire to
strengthen the markets inside position
were a number of reports which helped
to weaken the confidence OF the public
so far as the securities market was con-
| cerned. Perhaps the most damaging OF
those was one to the effect that the
President was seriously Ill. These rumors
had no real foundation. but anything
would have sufficed yesterday with the pro-
/ fessionals as a reason for selling stocks.
1 Another development which naturally
caused more or less unsettlement was
the Mexican situation. But In spite or
| all these developments the buying was
stin better than the selling; that Is to
i say, the selling was mostly all profess
i sional, while the buying was OF CHAR
acter that usually means that stocks
are drifting back into strong hands
again. Such buying did not have the
| effect of checking the downward trend
more than temporarily but 1t was very
clear all through the day that buying
on a scale down was going on in all of
the standard industrials, particularly the
steel shares, which are supposed to have
in front of them a very favorable state
ment from the Steel Corporation next
1 week concerning the operations or the
| corporation for the second quarter or inc
year.
] However, in spite of the excellent alb
sorption of stocks on a scale down. the
weakness was not entirely checked at
the closing This gave the impression
in some quarters that the selling might
be continued again to-day, but out
wardly at least the markets INSIDE posi-
ton seemed to be more strongly IN
trenched than 1t has been at any other
time during the last month. the steer
shares were extremely weak at the CLOS
ing and SO were those issues which last
week had to contend with more than
the usual amount of selling pressure,
although 1t might have been expected
that the selling in these directions had
been about completed. Chandler MO-
tors, Studebaker. Texas OIL Mexican
Petroleum, and in fact all or the hlghly
speculative shares closed the day with
losses averaging from three to as much
as ten points and more. In so far as the
standard shares were concerned the sell
| ing was not quite as pronounced except
| in ease of Steel common, which bore the
brunt OF the professional attacks all gay
The trading was somewhat more actlVe
| in the afternoon. but on the whole the
| indications were that the market was
settling down into a more quiet state
| for some time to come.
The money market was uniaNoraoie e
again TO security operations. Can
money, that is to say on mixed col
lateral, loaned all day at 8 per cent
but I'm the case of all industrial loans
II was still apparent that tho banks are
discriminating somewhat 1t might nave
been expected that money would nave
lbeen moro plentiful after Saturday nah'
statement. but such was not the case
The situation seems to be worse than
ever il anything. The foreign exchange
market was erratic all day Sterlng
rallied somewhat, but this Improvement
was not very we'll sustained Inc nm
preston in Wall Street quarters seemed
10 be that an important announcement
with respect to the exchange situation
is likely to come any day, but inquiry
yesterday failed to reveal the nature OF
Il Al any rate one thing Is certain and
that is IL sterling continues to decline
| stems must be taken II trade reia'
ltions are to be resumed on somethlne
like q normal scale. The rest OF tht
a~cbange market was easier, including
francs.