Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-13
STOCKS CONTINUE HEAVY
BUT LOSSES ARE SMALL
High Money Rate and Arbitrary
Financial Methods Declared to
30 Cause OF Stagnation.
ny BllOADAN VAIL.


NEW YORK. May 12.-Stocks were
heavy all day today and closed at the
low prices IN nearly every issue. Tho
losses were not large except In n few
OF the speculative favorites. The de-
elmo seemed to he due more to n
TACK OF support than to any agrees
sive selling. Dealers in textiles re-
port that their banks are warning
ITEM To prepare for a panic--not the
httle banks, but the big Wall Street
pohks. Panic literature Is being cir
,niatcd industr!nlly by statistical bu-
ieaus. There seems to be unanimous
agreement that "a panic would be n
good thing to have.
even travellers who return from
trips through the AGRICULTURAL regions
report strange inactivity on tho
part of farmers. Tho farmers have
apparently read what tho statist clans
hsre 10 say and arc convinced that
the use OF planting? Meanwhile the
mad marking up OF rents continues
and brokers who refused to renew
leases at IS and Sc square foot for
Offices arc being compelled to pay
from that price up to 50 for accom-
modations. Money was marked up to
10 per cent again.
Money Rate 1. Trouble.
The fact that all the stocks acted
about alike seemed to Indicate that
the trouble with the stock market
trouble with the money rate liz cx
planned in The Cashier "a magazine
published by the cashiers section, AS
ISOLATION Of Stock Exchange Firms
In this months issue II says:
For years the stock exchange had
money post. at which money was
dealt in according to supply and de-
fun,s their demand. nr reT HANDED dd To-
bank representative on the floor, who
deals out tho money as he deems fit
OF a. his principals instruct. Funds
such as brokers' balances. or supplies
from independent sources. can find no
market In one day during the month
IL was reported that S2,o00.000 In
brokers' balances could ind no bor-
rowers, although money ruled at high
rates. As at present conducted, the
money market is not alone artificial
but arbitrary as well. The settlement
system or some other means should
be adopted 20 diminish the power
which has done so much to stifc the
progress OF legitimate investment
business"
Needs Education Campaign.
This from the cashiers. They know.
How far IN the New York Stock Ex-
change going 20 get in It's campaign
Of education with such a condition In
existence? The stock exchange liz In
desperate need OF reform, but to kill
the exchange as the bonus tax plan
provided would be going TO dan
|
SO little money was wanted today
that the call rate could have been
G per cent. but tho banks are "edu-
eating" the public to high money
rates Perhaps this Is nece' AIRY since
stockholders OF the banks nave been
educated to high dividends on their
bank stocks. Investment interests OF
the country are paying the costs Of
this education.
Sugar shares were heavy with other
issues today on announcement that
the government would not permit a
retailing profit OF more than 2 cents
n pound. The big sugar companies
are making their money on the pro-
duction Of the commodity. The out
look in this direction Is not bright.
RepioRie's Secret Out.
One OF the secrctas of Replogle
Stecrs remarkable rise became known
in Wall Street today. 1t seems that
the company is large holder Of
Vanadium and other steel alloys abb
solutely necessary to the automobile
and the military Industries. Replogle
and Vanadium between them are be-
licvcd to have absolute control of all
the high grade steel business because
OF their control Of the alloys without
(which such steel cannot be DrOduCed