The Sun and the New York herald., 1920-09-21
FINANCIAL NEWS
AND COMMENT
Stock Market Continues Rise
In FOrenOon--Has Setback
In Final Hour.
INDUSTRIALS SELL OFF
! Rail Advance Makes Good
Progress at 0utSCt-Affccts
New Line Of Issues.
INDusTRIALs SELL OFF

Az was the oAse on Saturday, the
stock market yesterday had an outward
appearance Of strength, hut actually
there were ms many weak points as
strong ones The rise In Erie on mat
day brought out new crop Of possible
railroad mergers under the new cum
mlnk act and these reports yesterday
had the effect Of injecting life into the
entire list Of low priced issues ~
trading progressed this activity also
spread To some extent 10 tho better
grade ~ rails and Ia the Mexican
shares and apecialtleA Elsewhere, how
ever, the market failed 10 respond 10
the ovor.Sunday developments, The steel
shares, Tor instance, we're bid up sharp
~ 10 start with. hut their rise ala not
hold nor dill Il IN the case OF the copper
or motor shares, With the steel ana
motor shares II seemed TO bo case OF
having eliminated the short interest
and, as the pront taking set In In inc
nnnl hour, stocks OF this type went down
very easily, particularly steel common
which gave a very poor account OF W.
self on the day M whole IT.
The setback In tho rails ana onH'
however did not 80 any fnrther thnn
, the limits ot a normal reaeuon' Ins
was because there had been good puH.
ing. Where the rise had not Deeh pu,l.
on such a good foundation, ana Whouu
II had been entirely TOO faht ahSwn S,
s,orITs melted away easily az the selling
hepan 10 make itself felt In the last
hour, II was very foolish anyway TOT
wall street 10 think II could break away
from the trading area, In so far as inc
Industrlal stocks were concerned WIN
out the usual prelimlnaries, The money
n,arket IA still FAR too delicate to per-
vii a austaIned movement In the IN
austrIals and II would be 70 too IN INC
case of the rails II the fact were NOT
tfrown that the banks are anxious to
gst more collateral In back OF m,W
,oans The street H. full OF lndustrihN'
h,, ,horo are very few railrond shares
| Ir tho street, which accounts 'ol w.
,ac, that the banks arc anxious TO sot
more railroad collateral ana ulSu W,
the fact that rails move ior"nru ~
| easily, .....a. ycrv good
! ,.,,,.,ss nj tho outset, hut an entl'olN
| ,,s p,gs ,,no ~ issues participated In INC
80 The advance In Eric ana surn
,ssnes ON Saturday had undouotedF
| I,scourted the preliminary nego'h-
t,ons that nre being carried ON uE
! seyerai roads looking toward mergers
| , 90 a, was "A cnse OF finding new
,ssues "a keen the ball moving 80 10
"noaL In their place tho traders tooN
~ ono by one, Rock Island New
Haven and Southern Railway all OF
| ,,I,toh were connected In some "hE
,,ith merger talk. Meanwhile. how
aver tho industrial shares had lost inc
hest nart OF their opening advance ano
son,s ~ them a good deal more Thc
cather stocks werc very weak from
,he outset. on report that Central
leather would cut Its dividend to-day
hnt the most dIscouraging thing, 80 far
aa the Industrial ytocks we're con-
| cerned. was tile failure OF Steel com.
mon 10 hold It's gain. This issue acted
very poorly all day and " was notico-
\ abIe that such issues were the weakest
In the afternoon, when the protit thH-
ink set In.
| There was no change In the money
market, although Wall Street expected
A higher rate In the afternoon, This
was because no notice OF withdrawals
by the Government had been sent out
up 10 last night II had been ex-
pected that the Government would
withdraw approximately SsbOOo'oOo
from the banks to-day, but apparently
this will not be done until later In the
week. The renewal rate was per
cent, which was the same as on Fri
day, and that rate prevailed all day,
Some further time money was loaned
at per cent. for sixty day periods.
but none OF II Is coming from local
institutions. Thus far all that has been
loaned has been for the account Of
out OF town banks, which heretofore
have been putting their surplus money
out on call The local banks are not
expected TO enter the time money
market until later on this fall---not until
the demand for crop funds Is out of the
way, at least