New-York tribune., 1920-07-09
Rise iii Stoc cks
Carries Fl1rt her;
Money At ( r J.
Railway uipnnent and OIL
Shares Among Day ! Lead
era; Traders Optiniistic,
English Bank Gains Gold

sional door traders, the speculative
cliques operating In special issues and
buying BY what Wall Street calls the
public" the stock market kept up q
strong front yesterday even In the face
Of heavy realixing sales. Sentiment,
already chcered by several days OF con-
structive Improvement in stocks, con-
tinued highly optimistic. The specu-
lative element talked confidently OF .
sustained recovery in the market, run
ming for several weeks.
"A Z per cent renewal rate Tor call
loans, the lowest in q month, was ac-
cepted as concrete evidence OF an
easier money position at this center.
With the reduction in call rates the
money market is moving in accordance
with general expectations for the fnan-
cial community has been predicting for
q fortnight that once the semi-annual
settlements had been completed, pro-
nounced relaxation could be looked for,
at least temporarily.
Stocks encountered considerable pres
sure in tho way Of profit-taking sales
in the early hours of trading. Opera
tors who had bought stocks at the low
levels of q few days ago naturally were
inclined to realize on part of their
holdings. But this selling did not make
much Of an impression and the market
moved serenely ahead under the inn.
petus Of new buying orders. The man
ner in which stocks performed in
groups indicated concerted efforts by
pools to mark up prices.
Railway equipment shares were taken
in hand at one stage Of the session un-
der leadership of Baldwin Locomotive,
Haskell & Barker and American Loco
motive. AT another time the Mexican
oils took on pronounced strength.
Throughout the day q number Of the
so-called industrial specialties ex-
hibited advancing tendency, the most
notable features being International
Paper, Corn Products, Stromberg Car
buretor, Associated Dry Goods, Bosch
Magnetic, Iron Products and Remington
Typewriter.
Steel shares were higher as a rule
and United States Steel common got
above 95. Among the oils Houston on,
recently listed, jumped 13 points net
on dealings of 3,700 shares. American
Linseed displayed quiet strength on
the intimation that the largest soap
manufacturing interests in Great Brit
ain have about closed for the purchase
OF control of the corporation.
From the speculative viewpoint the
most important development of the day
came in the drop in money rates. Af-
ter outstanding call loans had been re-
newed on per cent basis, brokerage
houses in need Of new funds found an
ample supply at the same rate. This
OF course helped to stimulate increased
bullishness. Whether or not it is war
ranted in taking such stand at this
Tune. the Street is looking for moder
ately easy money throughout the re-
mainder of the current month and into
August, up to the time when the de-
mands of the crop-moving season be-
gin to be felt. It is on this basis that
the trading element is talking about
a conservative" bull campaign. The
common view is that the market will
continue to work into higher ground.
VI course temporary reactions such as
always occur in an advancing market
are looked for, but the net result of
the movement, according to the opinion
generally held. will be to establish the
industrial shares, on level somewhat
above the present plane Of prices.
There is no doubt that large lines
OF stock were accumulated during the
recent period Of stagnation. The point
at which such holdings will come out
Will likely determine in great meas
ure the extent to which the current
recovery will carry. The rise that has
has surprised no one who has been
watching the market closely, for stocks
indicated during the quiet spell in
June that they. were thoroughly liqui-
dated and ready to respond to a re-
sumption of constructive operations
once the money position became easier.
The big commission houses which
operate wires to branch offices in all
parts of the country gave out the in
| teresting and significant information
yesterday that there had been sub
stantial increase in the volume of buy
ing orders since the beginning of the
week. This was held to indicate that
the public, which has been holding
aloof from the market through the
dreary weeks Of stock market stupor,
| is taking greater interest in specu-
latioa, now that stocks have demon
strated their ability to move out of
the professional trading area. Whether
the public~c can be induced to come back
into the market in way that will
make it possible for the professionals
to keep the thing moving briskly re-
mains to be seen.
The weekly statement Of the Bank
Of England revealed many striking
changes, not the least important of
which was the gain Of s3,000,000 in its
gold holdings. At the same time loans
| contracted EST 900, 900, making it pos
sible for the institution to increase its
ratio Of reserves to liabilities from
the record low Of $40 per cent Of a
week ago to 1920 per cent.