Evening star., 1920-06-03
Stocks DULL, FIRM;
SOME SHARP GAINS
Cheaper Rails Are Featured.
Morgan in General Motors
Checks Raiding.
BY STUART p. WEST.

NEW YORK. June 3.-Lower rate
for call money, a sharp reaction il
sterling exchange, an easier tendenc
In bond prices and a very dull blu
generally firm stock market were tn
main features in the financial situa
ton today.
Wall street continued quietly cheer
ful. but not disposed TO do much unit
after next week when the republican
candidate for the presidency will b.
known and when the very importan
June crop report will be in nand.
That the run-up in call money oil
Tuesday and Wednesday was of onl,
passing significance in that it hat
nothing whatever to do with the rails
ing of federal discount rates. wa:
lean renewal was dropped this morn
ing abruptly to per cent as agains
yesterday.
1t is hard to see why such sharp
fluctuations between the s per cent
of Tuesday morning. the per cent
of yesterday and the per cent to-
day were justified, and il looks al
IL those who are responsible for max
ing up the daily renewals rather
bungled things.
Time money was unchanged. with
some business done at per cent
of funds offered at Sia on all indus
trial stocks.
Disappointed at Decline In Exchange.
The street was disappointed be-
cause the upward movement in ster-
ling was checked
1t had been thought that the up
turn would continue as it did four
months ago and end in the announce
ment of gold shipments from London.
ha hal in In1n
before long was not lessened. how
ever. by today's setback in sterling.
which was looked upon as merely a
normal reaction after a very sharp
and somewhat too rapid upturn.
Traders who had gone short of
stocks following the action of the
federal reserve banks were taking in
their contracts today at loss. This
short covering was chiefly apparent
in the motors, the steeIs. especially
Crucible Steel. and the equipments. par
ticularly Baldwin Locomotive.
The increase in the dividend on the
new Texas company stock brought
quite a bit of fresh buying into il
which had a stimulating effect upoE,
the other oils.
Trading in Pan-American was re-
stricted by the uncertainty of what
would be done regarding a stock divi-
dend at the meeting which was sched-
uled for yesterday. but was put over
until Saturay. Mexican Petroleum,
however. was strong.
The Railway Shares.
Every day that passes now makes
IL clearer that in the case of a rail-
road stock the fact that it pays a
dividend is positive detriment in the
present market Low-priced. nom
dividend paying rails continue the ia
vorites not only in the actual trading.
but in all the advices which broker
age houses are sending forth. If any
one of these so-called junior rails was
transferred to the dividend class by
any chance it is safe to say that it
would become much less popular.
At least two prominent firms gave
out strong pointer this morning to
buy Missouri Pacific preferred.
One advised its purchase for a long
pull, the other said that it was def
nitely on it's way to so. Evidently
these suggestions were needed. be-
cause Missouri Pacific preferred shot
up at one time two points. which is a
remarkable performance for any ordi-
narily slow moving stock under the
present apathetic conditions.
Rock Island and St Louis and San
Francisco are also almost everywhere
agreed upon as being among the most at
tractive Of the low priced rail group.
81 Louis and San Francisco would prob
ably be heavily bought crossing 26. 1t
Is in a position just now or having
equaled its previous top of the year.
which was in February, but not having
had enough strength to push through.
Morgan and General Motors.
General Motors presented a decidedly
different front today from that of yes
terday and several days past. This was
due entirely to the announcement that
J. p. Morgan & Co. had taken an
interest in the stock and would. here
after. be directly associated with the
management 1t was pointed out in GER
tain quarters that the house of Morgan
had got into the automobile industry at
the top prices. as the price paid by the
worlds biXest banking house might be
called 81 ,0Uo share.