Evening star., 1920-05-21
LIST FAIRLY FIRM
EXCEPT ON SUGARS
Weakness in Latter Group
Was Severe Test to Gen.
eraI Market.
ny SrUARr p. WEST.

WALL STREET. New York. May
e1.-The action of the share list today
suggested a market that was by no
means yet out of the woods. but which
was inclined to feel rather more con-
fdent that its pressing problems were
In process of solution, and that the
solution would be satisfactory. with :
out entailing consequences much more
serious than those already witnessed.
One or two pretty severe tests are
given as to whether there had been
decisive Improvement in the inside po-
sition. The market was called upon
to stand up against a very severe
fall in the sugar stocks-an incident
which was the more disturbing be-
cause this had been one of the rela-
tiveiy strong groups all through the
recent decline
The sugar issues were heavily sold
on the announcement that the princi-
PAL organization in the preserving in
dustry had determined not to buy un-
III prices had come down so per cent.
IL was altogether foolish to jump as
speculative Wall street did to the con-
c.usion that this would actually mean
mat sugar prices would be cut
in two.
The figures of relative world pro-
auction and consumption are suffi-
ciently convincing in support of the
view which has taken in the sugar
trade today that the shortage in the
visible supply makes it foolish for any
boycott OF the sort proposed by the
preservers' organization to have any
thing but temporary sentimental ef-
feet
Sugars Decline 4 to 9 Points.
The sugar market having had very
great rise and being itself in conse-
quence subject to sentimental inau-
ences. broke very badly on the news
II dropped the 100 points which is
the maximum fuctuation prescribed
for any one day
The rush to sell the sugar stocks
did not subside until Punta Allegro was
on over points from last night Gu
oan American over 4 points.and Cuba
Cane Sugar nearly A. This severe drop
In the groups which had been con-
sldered the most promising in the
market. along with continued special
weakness in American Wool. feathers
and other so-cs1led inventory stocks.
provided an extremely hard trial for
the list in general
That it did not provoke any general
renewal of the downward movement.
nut that. on the contrary. fully half the
market stood up very well was GER
tainly indicative of a real change for
the better. even although this change
may not yet be complete.
'VnC 8PVOInt ON h01I8.
Traders were disappointed at the
failure of the railroad shares to make
immediate response to the govern
ment's action. and exerted further
pressure against steels. equipments
and motors The market turned. how
ever. when oils were again taken in
hand. and further upward progress
was made as soon as rails Joined the
movement Investment transporta-
tlons and secondary issues. notably st.
Paul. Rock Island and Missouri Pacific,
advanced ] to 2 points.
Another feature of sentimental value
was the brisk rally in liberty bonds.
which recovered I to almost e1s per
cent from yesterdays lowest quota.
tions.
Call money was again abundantly
supplied at Z per cent. that rate also
applying to loans over the week end.
Other Market Tests.
There were other tests of the mar
ket besides the sugars and they were
pretty strenuous The consensus
about the stock dividend tax amend
ment to the soldiers bonus bill was
that it would render this legislation
much more difficult to get through
the Senate and that it therefore con-
siderably diminished the chances of
any legislation at this session. New
ertheless had the market position
been as sensitive as it was few days
ago the stock dividend clause would
have almost certainly counted.
Then again the price.cutting wave
swept the commodity market with n
vengeance. On top of the drop in
sugar, cash cotton broke over $50
points and there were violent declines
in all cotton and grain futures.
Helpful Factors.
On the other hand the market of
the day had two things to help 1t.
One was very conclusive signs that
liberty bonds had struck bottom,
some of these issues rebounding over
81 in the 500. The other was the
approval by the Interstate Commerce
Commission of the plan of the rail-
way executives for the distribution of
the $3e0.000,000 revolving fund.
This does not mean that the plan
will be Immediately adopted. but 1t
shows that the Interstate Commerce
Commission is fully alive to the ne
cessities of the transportation COM
panies and is ready to work in full
accord with the railway executives.
Quite q lot Of new buying came into
the railway shares. especially into
the low-priced rails, when the ac-
tfon Of the commerce commission be-
came known. The equipment group