The sun., 1919-03-09
FINANCIAL NEWS
AND COMMENT
Speculative Activity Contin-
ues without Abatement and
Trading Expands.
PRICE LEVEL GOES HIGHER
Local Banks Increase. Surplus
S9,732,000 and Gain in De-
mand Deposits.
PRICE LEVEL GOES HIGHER

Speculative activity in the stock mar
ket showed no sign of abatement yes
terday. business expanding materially.
Strength was perhaps an even more i'm
portant feature. The turnover for the
two hours far exceeded that OF any other
| similar period this year, and despite the
obvious weight of considerable realizing
and other selling pressure the level OF
prices was carried substantially higher.
The conspicuous movement OF the ses-
sion was the strength Of the leading
steel and equipment shares. particularly
Steel common itself. The way these ie-
sues went forward in the last few min
utes of trading furnished further and
more important testimony of the broad
enfpg OF public interest in the dealings
and also as to the complete about face
OF speculative opinions in Wall Street as
result of the forward movement in
the stock market. There was some
profit taking in the higher priced spe-
cialties, but as a rule the market closed
the day at about the high for the week.
The pace which speculation answered
to the spectacular changes in the in
dustrial groups was obviously entirely
too fast to be maintained for any length
OF time, but there seemed to be no let up
whatever In, the dealings. The over
night advance in the leading speculative
favorites brought fresh supply of out
side buying orders into the market al
the outset and prices again were moved
forward without much trouble. Toward
the end OF the first hour there was some
profit taking and selling pressure from
the professionals with a view Of bringing
about y more complete reaction in the
last hour. But in the last few minutes
new buying appeared and prices were
whirled upward again, at times with
great violence. This was suggestive Of
reaction during the first part of the
week. II for no other reason than techni-
cal grounds. The great majority of Wall
Street commission houses continued to
maintain their bullish attitude toward
the market even to the closing. But
there is obviously rather extended long
interest in some Of the more important
steels and specialties shares. and those
houses whose opinions are usually re-
garded as rejecting important Wall
Street banking opinion sentiment were
OF the opinion that the market Is due
for substantial reaction during the
new week. IL the advance is to be con.
tinued for any length of time.
steel common again provided the most
important feature of the day. The way
the shorts ran to cover in that issue
had the effect Of bringing about extern
sfve advances In some OF the independent
steels. such as Bethlehem B. Crucible,
Lsckawanna and Republic, all Of which
closed the day with substantial gains.
But these issues were not the only i'm
portant favorites in the dealings The
equipments again attracted wide inter-
est. especially Baldwin. The semi-offi-
cial statements to the effect that the
directors were planning to place the
Junior stocks on a dividend basis early
IN May brought large supply of buy
Ing orders into the market and prices
OF the equipments made another spec
tacular advance. There was further
short covering in the marines, which rose
to new high levels for the current move
ment, and the specialties again shared
In the upward movement. although the
oils showed signs of profit taking in
consequence of the sharp upward move.
ment during the early part OF the week.
In the railroad department trading was
on quiet scale, this Is TO say in all
descriptions except New Haven. which
made further and more important i'm
provement The coppers advanced along
with the rest of the list
The Clearing House statement dis
closed an increase in surplus reserve
OF approximately ss.732,000. bringing
that item up to S49,91l,00 the rise
being due to an increase of s7,352, 900
in cash reserve with the Federal Re
serve Bank of New York and an increase
in demand deposits of s9.364.00o. The
statement also disclosed a contraction
In the loan item of about 1000. 900, in
spite of the increase in speculative
activity ON the Stock Exchange during
the week. The foreign exchange market
was quiet, with rates about unchanged
from the preceding days closing. Bank
clearings for the week totalled $685.
425.s64. against s7.29o.514.362 last week
and $6,065, 9S2,175 in the corresponding