The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-10-22
THE RIcHMoNp NEUTRALITY-SUSPICIOUS. OCTOBER O.
REACTION AT CLOSE
LOWERS STOCK LEVEL
BY BROADAN WALL

New York. Oct. 21.--Stocks closed
reactionary today with net gains ex-
ceeding in number the losses. but
with all stocks under the best prices.
In the morning the market was
buoyant and several now high rec
ords were made. Trading was on
heavy scale. The high priced indus
trials were leaders. General Mo-
tors, Mexican Petroleum, Central
Leather. Baldwin Locomotive, Corn
products and finally United States
Steel got the traders highly excited
by their strength.
Just before the close a rumor was
put In circulation that the federal
reserve bank would raise the dis
count rate in the hope Of curhing
speculation. This rumor came Just
when professionals were conEratu-
lating one another on the decline Of
the money rate to six per cent. The
low rate and plentiful supply Of
money forecast by Saturdays bank
statement has had its effect on
stocks The federal reserve board
butted into the situation year ago
with disastrous effect to the business
interests of the country and sober
Wall street men do not believe that
it will make this mistake again. A
strong and active stock market is an
absolute necessity now.
Some Of today's strength was due
TO anno-1ncem ent of the new British
loan or s25oo0O.O00. The announce
ment strengthened sterling exchange
to the extent of about three conts
some Of which was later lost. This
loan viii not only finance the dehts
~ rrEf J, nj 70 i've Jsaa
here. but will stabilize exchange SO as
to make possible further large ex-
ports to the great benefit Of Ameri-
can business. The establishment Of
this credit comes Just at the time
when the hsrbor strike is settled and
should result in a sudden increase
Of exports
Other favorable factors OF the day
were the better reports from the
presidents sick room, from the steel
strike sections and the reports that
the president and his cabinet would
succeed in preventing a soft coal
strike.
General Motors was leader Of the
automobiles. Mexican Petroleum es-
tasblished a new high level Royal
Dutch was the star performer in the
late trading. selling up six points. al
together on very heavy transactions
AZ the same time General Asphalt on
the curb sold off rather sharply and
Shell Transport moved upward
Judging from the action of United
States Steel, some sort of pool ar
rangemert has been reached by
bankers identified with the manage
ment. The stock was we'll taken all
day and by the right people.
Sugar and Candy stocks continued
in argent demand under leadersh' -
Of corn products. That stock sold at
o new high record. With Wall
street restaurants doing out sugar
by the lump, the shortage is brought
home IN traders The Corn Products
company and the United States Food
Products company are both pro-
ducers OF syruns that will he in great
demand for the next three months
There is no shortage Of sugar in gen
eral but SO many patriots have
boarded the commodity that real
Americans are going 70 find Il diff-
cult TO get a pound al the grocer's
Sugar dealers say there will be al
most none in December II IS ex-
Pected that thousands Of soda foun-
tairS VIII be compelled to curtail
their business in sweets There will
naturally he a big demand for candy
and all The candy companies have
taken care to provide themselves
with stocks against the day OF
famine 44 .4..-.,. .a.
Central reather's splendid renort
for the third quarter found quick
reflection in the market The stock
advanced nea r'y three points but
lost most Of this in the final wave Of
profit taking.