The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-04
FINANCIAL NEWS
AND COMMENT
Trading in Stocks Is Uneven
but Advance in Some Is
sues Continues.
COPPERS SHOW STRENGTH
Bank Statement Reflects Drop
in Surplus Reserve of So
100000 in Week.

With very few exceptions, yesterdays
stock market witnessed a continuation
OF the same sort OF buying movement
which has been under way all during
the past week. But the trading was
curiously uneven. with a great shifting
around of commitments from one group
OF stocks to another. Heavy profit taxi
ing was plainly under way in the rub
bers, rails and oils, which were the
most conspicuous features Of the deal
ings In the preceding days market,
while new buying appeared in a num-
Der of new directions which have Jagged
behind recently. The day was further
signalized by a rather sharp squirt in
the copper shares. These issues have
been neglected all through the current
upward movement and their strength
was considerably Of a surprise to those
who have followed conditions in the
copper metal market and who are con-
vinced that the resumption OF buying Is
! still waiting on lower prices. Trading was
4 still maintained on the high level of
expanded activity. the days business be-
| Ing broader, IL anything. than hereto
| fore
The principal reason for the Irregular
| ity of the market, quito obviously, was
| profit taking, together with the usual
| weekend considerations. These latter
considerations were perhaps more
/
| stock market than usual on account of
the fact that Tuesday is to be a holiday.
Many traders. intending to remain away
| from the financial district until Wednes-
| day morning. either sold out their long
holdings altogether, or put out short
lines against them In order to protect
| themselves against the possibility of
adverse developments over this period.
| But whatever may have been lacking in
| n t69naQ
more than made up in the manner in
| which some of the lower priced shares,
which Wall Street has refused to pay
much attention to lately. advanced.
Even such issues as Denver preferred
| were taken up and moved forward
sharply. Indeed 1t now appears as though
| all one has to do to make money
in the stock market is to shut ones
eyes and pick out anything. That this
| Is the point where speculation becomes
| dangerous is not to be doubted for one
| instant, but whatever Wall Street thinks
| about the market Just at present does
not appear to concern the outside public
at all. II merely furnishes another
striking instance of the conservatism
| of the financial community and the ultra
Sullishness OF the general public.
There may have been some news
which the public is keeping from Wall
Street TO account for the movement In
several issues yesterday, but It was hard
to find. indeed. These who know the In
side conditions In the copper industry
and likewise those who know the f1nan-
cial position of some of the lower priced
Western rails, were at loss to understand
the speculation movements In these is
| sues. Whatever the reason, yesterday
stock market showed more plainly than
any other market had recently the extent
Of the public interest into the tradin g
and the persistency with which 1t is buy
| ing stocks to the disregard of all factors
which ordinarily would make for conser-
vatism. So far as the rest of the list
| was concerned. not all issues were under
| the influence of realizing sales. There
was n broad demand for Steel common
and a number OF other similar issues
which were supposed to have lost their
speculative attractveness last week when
| the dividend on Steel common was cut.
| There did not appear TO be any new
| buying to speak OF IN any of these issues.
however, the principal demand coming
from the shorts which had expected a
much sharper break than has actually
| occurred.
The bank statement disclosed a de-
crease OF 100000 in surplus reserve to
s3e,744.000. which was brought about
through the combination Of decrease
! in cash reserve and an increase in de-
posts. But the big feature of the bank
statement was not so much the loss in
surplus reserve as it was the increase In
the loan account. This item showed an
expansion OF s117 1000. 900. bringing the
aggregate loans to the highest point In
| the history of the New York Clearing
House Association. Incidentally IT fur
nished the first accurate reflection OF the
tremendous increase In speculation or
=. A.,
in loans representing the first time that
the expansion Of speculative activity ha,
been reflected in the borrowings Of tn,
various Stock Exchange houses.