Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-20
FIRM TONE Shown
|NSTOCK RALLIES
BY STUART p. WEST.

BY STUART p. WEST.
WALL STREET. N. Y, July 90
The market lost today much of the
hesitation of the previous days. and
while not becoming at all active,
showed distinctly more confident
tone. For this there were three
causes responsible. First. the labor
wage award made known at Chicago
this morning was largely unexpected
1t was nearly a $500. 000, 900 increase
whereas 100000. 900 had been looked
for. The fact that the labor board
had been more liberal with the unions
than anticipated made the street less
uneasy than it had been yesterday re-
garding the possibility of a vast rail-
way strike. Secondly. money was
easier. The call loan renewal was
marked down from to s per cent
and the new demands OF the day were
all quickly met at the latter figure
There was a better supply of funds
than there has been at any time in a
week. this following the very sub
stantial Improvement in the credit
situation throughout the country de-
noted by last Saturdays federal re-
serve report Third. there was the
fact which had been made pretty
clear yesterday that the market it
self was thoroughly sold out. and
that bear operations. so effective last
week, had been overdone.
Factors Are Favorable.
This combination OF favoring cir
cumstances was strong enough to lift
top of the gains of yesterday after
noon. The leaders were Crucible
Steel. Republic Steel, Vanadium,
Stromberg. Baldwin Locomotive.
American Locomotive and the Mexi-
can oils-in other words. the stocks
sstently in last weeks decline
When this short covering ceased, as
it did around midday, the life went
out of the trading. There was very
little fresh buying, because every
body was waiting to see whether the
and whether there would be refer
endum on the question. the result of
which would not be known for an
other month.
The two features in the minor oil
group were Union Oil and Invincible
ment made here yesterday that new
property had been acquired which
would add capacity of between 5000
and 5000 barrels a day to the CON-
pany's production.
The buying in Invincible was of the
quarters as the buying which put the
stock across Al last week
SpeciaIties Feature Trading.
The specialties group provided the
main interest of the day There was
the usual talk of short interes,
trapped" in Stromberg Carburetol
that has accompanied all previous
jumps in the stock. There are no de.
velopments of any real Importance ir
the Stromberg situation. The stock
is simply so closely held that it car
be moved either way ten or fifteer
points at a time with the greatest ease
The buying in Canadian Steel al
through the depression of the las
week has been very good and those
who have been correct regarding pas
movments in the stock and thought
that the rise had been temperate,
overdone when the price was around
go. are again talking bullishly. Ir
International Paper the buying con.
tinues to come from the Canadian in.
terests which have been making a bis
play in Canadian paper stocks.
Bond Market Stronger.
While there were no very important
price changes the bond market wa:
pronounced by dealers today as hav'
ing rather stronger tone than yes
terday. This meant that there was &
larger and more dependable demand
at current figures. The new $4,000,
900 offering of the United States Rub.
Der notes. which were put out on g
TX per cent basis, were quickly
snapped up.
Inasmuch as the Rubber compan,
earned last year five and half time.
its entire fixed charges and has 6
surplus of current assets over liza
bilities sufficient to pay off the notes
many times over. this is one of the
ments that has been offered at all
The notes sold today at a slight pre-
mium-9s%. as against the offeret
price of ssA.
The long.awaited Pan-Americar
Petroleum financing was made public
today. There will be a note issue o
81 100000 to run ten years and bea
interest at per cent. The notes arr
to be offered on little better than
|7Z per cent basis and are convertible
at 145 into class B common stock
The proceeds of the new issue will g,
to provide funds for marine tanker
and will be first mortgage on thi
fleet. Liberty bonds were irregular
The third ANS were quite bit strong
err than yesterday, while the fourtl
ANS weakened still further, getting
down close to IS. Swiss government
IS were strong, crossing 1913 agail
and finding good demand above tina
figure.
Curb Market Firmer.
A decidedly firmer tone prevailed OF
| the curb market today. The demand
especially for the oil shares, was con
siderably broader than in some time
mission business reported good buying
| for outside account at the highe
| levels.
| Price movements were smaller il
! the miscellaneous list, although Gen
! eral Asphalt recorded a substantial
gain on an excellent scattered demand
United States Steamship, Aetna Elk
, plosives. Retail Candy, Hercules Pape
and several others scored fractiona
| advances.
Dealings were fairly active in tn
| mining group. but changes were mar
row. There was a better demand TO
the bonds and the tone was steady.
| Trading Slows Down.
! The afternoon trading was quit
featureless. AS a rule prices retaine,
| for the greater part of the groun,
gained during the morning. but di
| more. Sentiment was inclined to loo]
| for a further rally if the Chicag
labor difference decides in favor O
accepting the decision Of the wag
board. There were many who say
a more than a mere coincidence be
tween the handing down of tn
railway wage award and the Penn
| sylvania railroad announcement tina
| 10 per cent Of the working force wa
| to be laid off.
This might easily have been an into
| nation to the labor heads that on tn
Pennsylvania, at least, and presume
bly, on some of the other roads, Their
was labor surplus instead of
shortage, and that this surplus woul
be duly brought into play in tn
event of strike.
At all events the Pennsylvania &C
ton had very Statutory effect upo