The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-07-26
STRENGTH OF MARKETS |
DUE TO OIL ACTIVITY
my BRoApAN wALL.a


New York, July 25.--Announcement
by the Standard Oil. OF New Jersey.
AFTER the close OF the market today.
mat 1t would issue $13.00o,o00 OF new
7 per cent preferred stock and list
both that ano the common stock of the
company on the New York Stock Ex-
change. explained much of the mystic
rtous strength of the market that has
puzzled professionals recently. Ac-
cording to all rules of the street the
market should have a bad reaction
but no sooner do the professionals get
1t going down than some mysterious
ionuence turns the tide against them.
1t is now evident that the biggest bus
mess interests of the country have en-
tered on campaign OF development
that they propose to finance through
the stock market. 1t is necessary for
them to have an active and strong
market for this purpose.
For some days the tobacco people
have been giving credit for sustaining
prices. but intimate knowledge of their
activities makes ii possible to say that
they have done very little along that
line. They themselves have been sur
prised at the strength of their stocks.
The Standard Oil announcement makes
everything clear. This in connection
with the Notation of the she'll trans
port and trading company issue. the
new Cramps company and various
other fotations ranging from a million
dollars up commits the leading bank
ers to a policy of optimism in the mar
ket Professionals came to the street
today confident that their attack of the
previous afternoon would bring in
food of selling orders. Much to their
surprise the public recognized the
break in prices as nothing more than
an opportunity to pick up bargains
Shorts were forced to cover one and
+ two points above the previous closing
Not only did the general level of prices
Improve but several issues made new
high records for all time. Conspicuous
among these were Corn Products Re-
ining American Tobacco. Tobacco
Products and Central Foundry.
Aside from the Standard OH fnanc-
frg the most important influences were
the government report of record for
eign trade for the fiscal year realiza-
ton by the public of the Importance
Of the action taken by the First Ma
tional bank in recognizing Industrials
as the equals of rails in collateral and
a fading away of strike talk in con-
nection with the steel indusry- It was
also than an announcement would soon
be made Of an increase in steel prices
by the leading producers.
As an illustration of the prosperity
OF the 1000 companies the torn t'Fo~
ducts company reported that in the first
six months of this year 1t had earned
Sic a share on its common stock This
resulted in an excited buying move
ment which put the stock to the high
est price on record There was insistent
buying UP to the very close.
Although the United states Food
Products showed no net advance for
the day the buying OF that issue was
Of the best character.
Kelly Springfield was strong on ru-
mors OF an important contract for
tires,
After day OF great strength in
several issues. the stock market sold
proft-taking It closed steady but a
little under the best prices for the bulk
of the stocks few issues were ag-
excessively strong UP to the very last
minute of trading.
II I'm several Individual stocks there
were definite reasons for advances In
i-ene Tohaccos. ir %as large short inter-
| est that is becoming worried In the
/ r arnes it was the announcement made
| of the discovery of a o.ooo, 600 con
ceaied asset The Corn Products re-
! port OF S12 share carried in SIX
months helped all the food shares
| The price level improved IN to mid
| day Then there was a reaction due
/ to profit-taking. Another upw a r d
| movement was followed by rather free
| selling in the last hour, but just be-
| fore the close sharp advance came
| in the specialties that carried the
whole market up,