New-York tribune., 1920-05-29
Higher Prices
Rule lin Quiet
Market Session
More Liberal Offerings of
Time Money Prove Help.
ful Influence; Sentiment
Is Much More Cheerful

Higher prices were the rule in the
stock market again yesterday, where
the movement toward recovery begun
at the outset OF the week carried fur
ther ahead. The market was a rather
dull affair, all things considered, the
dullness being accentuated by the ap-
preaching holiday and the fact that
little is expected of speculative shares
until Tuesday, since large part of
the speculative following will not come
down to business to-day. But to those
traders who have taken the position
that the trend of stocks is at least
temporarily toward higher levels the
showing made by the market yesterday
was considered indicative of still bet
ter things ahead.
Wall Street, by reason of number
of developments during the past few
days, not the least of which has been
the evidence of an easier credit stu
alton as seen in the more liberal offer
ings by the banks Of both call and
time money at this center, has become
decidedly more cheerful over the i'm
mediate future OF stocks. The change
from a few days back, when panic talk
was to be heard on all sides and gloom
munity, has been striking.
Conserva tism is still the rule in
financial circles, as is indicated by the
narrowness of the stock market, yet
signs are not lacking that the specu
lative element which took leading
part in the recovery that followed the
February smash in stocks is again be-
coming active. This lis particularly
true OF the speculative pools, which
have resumed operations in a number
o( individual stocks. 1t is believed that
,lo banking interests are not averse
to seeing a moderate recovery in stocAs
81 this time, especially in view of the
lact that they have many new pieces
or financing to arrange. At the same
time, however, it is quite certain that
any efforts to stage d broad bull mar
kct under present conditions would
meet with an obstacle in the form of
another jacEing up OF money rates.
During the last day or two the banks
have shown a disposition TO increase
their offerings of time money. Yestcr-
day the supply of funds for fixed
periods secured by Stock Exchange col
lateral was the most abundant in
weeks. The banks appeared to be will
ing to put out several millions at S12
per cent on all industrial collateral for
period of sixty days, whereas here
to1ore the rate has been around 9 per
cent, with practically no time funds
offered. The changed attitude Of the
banks toward time loans has given rise
to the belief that the banking com
munity looks for q condition of mod
crate ease through the summer months
Call money, hardened slightly in the
afternoon when the rate went to per
cent after renewals had been made at
per cent.
Railway equipment shares, tobacco
stocks and motors were among the
strongest groups in the days stock
,oarket Railway issues also moved
forward on light buying, based upon
the progress made in the hearing be
lore the Interstate Commerce Commits
sion on races and valuations. In the
foreign eXcnange market the tendency
was toward reaction from the high
much of the ground gained in the sharp
squirt of Thursday.