The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-07
FINANCIAL NEWS
AND COMMENT
Speculative Situation Not
Changed-Technical COndi-
tons Rule Trading.
RAIL ISSUES TEND TO SAG
Dealing Is Mixed-Sugars
Gain While Other Indus
trials Lose Ground.
RAIL ISSUES TEND TO SAG

| There was no change In speculative
conditions IN Wall Street yesterday. II
was again a matter OF technical condi
i lions entirely and the question whether
! the rally had gone far enough to at
| tract fresh selling or whether the re-
covery would be continued and how far.
| AS it turned out. the market did
not do much in either direction except
in special stocks. The rails were in
clined to sag under influence OF the
profit taking that began at the close OF
last week, but not a great deal of pro-
gress was recorded except in Texas an
Pacific. the break of which was an
outstanding feature of the trading A
reactionary tendency also predominated
In industrials. those Issues in which the
short interest made It's hasty retreat
earlier in the week. being rather weak.
On the other hand industrials, in which
covering had not been so marked. were
strong. but the strong spots were hardly
numerous enough to offset the weak
ones.
What the market indicated was that
the rails simply were having normal
reaction to which they were entitled
because of Their months advance, while
in the case of the industrials 1t looked
as II these stocks, having had their rally
from the low point, had started down.
ward again with the idea OF making a
double bottom. The break In Texas ana
Pa cific furnished the railroad shares
very important test of their underlying
position and the fact that they held up
as well as they did under such break
tended to encourage the average OBJ
servers who had been looking for bet
ter things for railroad shareholders.
With the industrials. however, the short
covering seemed to have run its course
in active stocks and although they did
not go down very far, they presented a
very heavy undertone throughout the
day. indicating that the bear party was
taking advantage OF the rally to put
out fresh lines Of stocks with the idea
OF taking them back on what would be
considered the last break In industrials
If 1t should come.
In the indust.taIs and the rails. how
ever, trading was very much mixed. For
instance while Texas and Pacific was
having it's violent decline. Reading came
to the front with a fresh advance to
new high for the year, and the same
sort OF movements occurred among in
dustrials. Sugars. In that department,
made progress, while other stocks de-
clined. There were also strong spots
among the motors, Chandler getting
into new high ground on the recovery,
while others of its group stood still or
lost ground. The industrials of the
type OF Steel common, Baldwin. Repub-
liz Steel and LaclSawanna, however.
were consistently weak during all OF
the session. and their final prices were
practically the days lows. Oils. except
Texas Company, were inclined to sell off
with steels and equipments. The
strength Of Texas Company, however.
was based on special consideration.
the declaration OF a 10 per cent. stock
dividend on Tuesday.
| The money market went through
about the same performance as 1t did
on the preceding day. Renewals were
made at per cent. but that rate was
advanced later in the cay to per cent
The Street paid no attention, however,
| to the money situation as the furry
was due entirely to preparations for
| Government Withdrawals OF approx
mately $4,000, 600 from the banks to-
| day In connection with the money
market, Il was rimored again during
the day that the BANK statement would
make a poor showing on Saturday, that
there would be another decline in re-
serve ratios OF the local institution and
OF the combined statement issued In
Washington by the Federal Reserve
4 Board. The decline. however, will not
he AS marked as was the one last week
II IS understood. The foreign exchange
market was hrmer with sterling above
1850. Further gold received from
Great Britain amounted 10 $9,500.O00
but as that gold has been earmarked
It will not count In the reserve OF the
local Federal Reserve Bank