New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-03-30
II Per Cent Rate
For Call Money
Induces Selling
Stock Market Action Dis
appointing, in View of
the Arrival of $780,
600 Gold From London

Twelve per cent call money induced
general selling of stocks in the closing
hour yesterday. To interests working
on the constructive side of the market,
the failure of prices to make q more
vigorous and uniform response to the
news Of the actual arrival of s9,300,000
in gold from London, was disappointing.
For this was the development upper
most in the mind of the trading ele-
ment since it confirmed in a measure
much of the rumor and gossip that has
been going the rounds Of the financial
district for several weeks.
The market, however, labored under
the handicap Of break in its lines
of communication to the West and
South, due to the storm which inter-
rupted Geographic connections for the
greater part Of the day. AS result,
practically no business came through
from the West which has been such
an important factor in the market since
the rise started. The wire trouble was
mainly responsible for the falling off
change dropping under the million
share mark.
Stocks started out with fair degree
of strength and there was again plenty
of action in the highly nervous motor
and motor accessory shares. But the
movement was not general nor well
sustained, fact which was soon
seized by the. the professional traders
as basis for selling operations. Selling
became widespread in the afternoon
when the market encountered stitfen-
ing money rates. Call money renewals
were made at 8 per cent and the rate
held there until after midday, when
it moved up to per cent. A short while
after 1T was again advanced to 10 per
cent, followed by another rise in the
flnal hour to IL per cent. Preparations
by the banks to meet government with
drawals to-day probably accounted for
the short supply of call money, which
caused the tightening in rates. 1t is
believed, however, that somewhat easier
money will be experienced before the
from England was turned into the local
Federal Reserve Bank and should
therefore, reflect in this weeks state
ment.
Individual movements of stocks were
interesting, but not important. The
further spectacular rise in StutZ
Motors, which scared to a new high
of 337, after early weakness was. per-
haps, the outstanding feature, although
Cruclble Steel attracted attention by
suddenly squirting to 261, thereby
equallng it's top price of 1919. Steel
common displayed early firmness. but
yielded with the general run of stocks
in the final dealings. Oil shares were
rather weak at the close, while among
the specialties Columbia Gas and Elec-
trio responded to the publication Of the
annual report with spirited advance
Ever since the first intimations that
England and France were considering
shipping gold to this country as one
way OF meeting the $50OO0O,o0O Anglo
French loan maturity of next October,
the argument of the stock traders has
been that such an influx could not
help but be beneficial to the general
credit situation, since large 20 Id I'M
ports would tend to build up impaired
gold reserves. Now the first gold has
come through. Another shipment. csti-
mated at $10,000,000, is reported en-
route to New York. How extensive the
movement will be cannot be learned.
1t would not be surprising if $50, 900 900
were to be shipped from overseas in
the course of the next few months
1t is believed England can spare the
gold. 1t is only a question of whether
such large shipment would be wise
proceeding. for while it would undoubt-
e,dly help here, it also would weaken
the position in London. Bankers in
touch with the domestic credit situa-
ton held that it does not necessarily
follow that such gold as arrives viii
be used for basis of additional credits
such as the stock market following
might desire. The thought is that
the gold is needed to bolster up present
reserves. which have been reduced TO
dangerously low level through a
rapid loan expansion at a time when
gold. was being lost on export The
foreign exchanges were easier yester-