Evening star., 1920-03-18
VERY BROAD AND
STRONG MARKET
By STUART p. WEST.
special Correspondent of The star.

March Is.-Today's fairly boiling bui
market was a terrible shock to the
theorists, the much quoted repre-
sentatives of banking opinion and th'
numerous professional following II
Wall street, all of which element:
have been maintaining for the las
three or four months that there couIt
he 40 Improvement in stocks. nc
loOseninE Of the credit strings for the
benefit of spectators. until the gen
"ral banking position was III very
much stronger shape.
Those who have ciunC to this theory
found il very hard to explain to them
selves today how there could have been
such q heavy buying movement with
such violent price advances and Yet with
The federal reserve ratio not much over
] per cent above its absolute bottom.
To be sure money rates continued to
sag with the renewal : per cent, as
against y per cent yesterday and per
cent the day before
But this realization had been fully
anticipated when the tax money
should begin to come back to the
market. II could not have been said.
therefore that todayS rema rk a bic
upturu was a result of easier money
conditions except that these counted
in minor way.
Predictions indicated.
The days market vindicated The at
t!tade of those who have perSiStentiy
maintained all through the months OF
depression that while credit difficulties
might temporarily put stocks down.
and put them down considerably. they
could not prevail in the end over an
investment position that was based
Epon inside knowledge of values. The
:;o-called inside interests in the war in
dustriais-that is, in the stocks of
companies which had made most
money out of the War--did not sell in
last autumn's boom and held firmly
through the entire break from Novem-
her to the end of February.
Consequently, while prices alto
Eether had very extensive decline.
the recovery has been reached and
complete. Since the Supreme Court
decision of ten days ago values have
redSSerted themselves because the
big industrial companies now have a
chance to demonstrate the reality of
their great treasury surpluses. and the
stock market has u chance to dem
onStrate that this. after all. is "A far
bigger consideration than the credit
question and more important even
than any conceivable downward turn
that may be going to take place in
the countryS trade.
Treasury View Substantin,ed.
Those who have consistently main
famed in the face of much criticism
that the big treasury surpluSeS were
the vital factor in the situation and
that their influence would tell above
ali other factors in the long run have
found their judgment fully substan-
fIated by the extraordinary rebound
which reached it's climax today.
Disregarding all warnings that the
authorities might shut down upon
SnTb La isn HI. RI, rms el
forward today witk Il display of en-
thuSiaSm which has not been equaled
since the termination of the rise in
the first week of last November.
All classes of stocks We're swept for
ward. although more spectacular gains
were recorded in shares of companies
which are in position to follow the
example Of the Crucible Steel direc-
tors and distribute stock dividends.
With Steel common back to where il
was selling four months ago and with
many of the high priced industrials
back all the way from two-thirdS to
the whole of their entire loss in all
this long period. il WAS not surprising
that Wall street should have been SO
enthusiastic.
United States Rubber.
United States Rubber is another of
the stocks which can cut a melon at
almost any time. and this fact sud
denly daWned on Wall street this
morning. The short interest which
had collected in the stock was given
iuite a beating when the stock
plunged across l10. which was the
point al which stop orders were be-
lieved to have been put in because
Of the short interest. Once the stock
got up across ll2 il ran UP easily.
Rubber. in addition TO its present 81
quarterly rate, is likely to declare
another stock dividend of the same
size as that declared recently-12l.
per cent.
Pressed steel Car.
Pressed Steel Car is one of the
equipment companies which hopes to
make big profits out of its automobile
accessory plants. 1t is learned that
the company is now making a new
type auto wheel for both pleasure cars
and trucks which it is said will in
time supplant the present type OF
wheel. The new wheel is made of
steel. and the company hopes to add
at least $40 a share net profit TO its
common. stock earnings this year.
These wheels are being turned out in
TWO plants.
HaskeH and Barker
The strength in Haskell and Barker
today indicated that the accumulation
which has been going on for several
months past has been for the account
of strong interests. This buying has
had as its incentive. first. the splendid
financial condition of the company
which Will be revealed in the annual
report to be issued within the mex,
lew weeks and which is expected to
snow about $50 share earned for
The stock. There is still another rea-
son. Wtich came to light today The
company has closed u contract with
the Belgian government for railroad
equipment of gross amount OF
*-2.Voo."o0. Payment for this equip
-.
ork funds, SO that the COMPANY does
not run any risk of loss.
American Hide and Leather.
American Hide and Leather stocks
principally the preferred moved for
~ard again today on the report that
the plans for the funding of the ia
per cent OF back dividends on the pre.
TERED are well under way and may be
announced in the near future Sine,
The retirement by the companv of its
sN,3u".eon per cent bonds last Sen.
t+mber the company has been able 10
make considerable headway on its re.
Capita iiZation plan. The elimination OF
the c'hipah! bonded debt reduced its
capital by about 30 per cent II is nm.
derstood that the back dividends vii
bt PAID OH III some form of new So.
curitieS.
-. Louis Southwestern is.
In a special letter put out TODAY
on railroad bonds. Shonnard NiII>
60. had the following to say or
~" st Louis and Southwestern 3s
For som" years prior 10 TN, ara.,
war IN" first consolidated rnortyap.
S"ld per cent bonds of the 81
Louis Southwestern railway fuctu
at"d between low Of 12i, and .
hish OF ~ = In other words the,
Gould not be bought on II basis I,
weld more than -. per cent in IN,
IaSi wears. while in the better wear,