New-York tribune., 1920-08-11
Stocks Without
Clear Trend as
Pressure Is Lifted
Polish News Relieves I'm
easiness and Induces
Some Covering; Time
Money Lent at 911 p. C..

AS an articulator of opinion regard
ing world events the stock market
was hesitant yesterday. The fluctua-
tons were without definite trend and
told nothing except u story of uncer-
tainty. However, it was obvious that
tor the time being at least the market
had been liberated of the intense SELL
ing pressure which has proved so dis
astrous to the prices of industrial
stocks in the last fortnight.
The Polish advices which were avail
able to traders were to degree con-
Trajectory and yet they indicated that
new general war in the Old World
was unlikely in the immediate future
The overnight dispatches revealed op-
position on the part Of British labor to
direct military aid for the Polish, but
indicated that munitions and supplies
would be sent and that the rigidity of
the blockade against Russia would be
heightened. In that the Polish news
forecast no drastic change in the stua-
tion it tended to weaken the selling
pressure, but still was not regarded
by professional traders as being one
sided enough to justify sustained
upward movement Of stocks. Early in
the day additional shorts who have
gained muniticently from the recent
breaks in the market decided to take
profits, and their covering operations
impaired an element of firmness to the
market. After these transactions were
performed the market tended to ease
off again, but the improvement over
previous days was revealed in the fact
that the market tended toward dullness
when pressure was brought against
the list. The volume of trading was
on curtaled scale.
The bear groups, however, were not
completely restrained. On the other
hand, they kept up their search for
weak spots, and their quest was not
wholly in vain. The sugar stocks
and the tobaccos were the main tar
gets, and losses Of several points were
established
Call money opened at per cent,
and then eased off to per cent. Since
a week ago Monday, bankers have
asked no higher than 8 per cent for
call money, and on all but one day
the renewal rate was per cent. The
ease was in part caused by the liqu-
datiOn in the market which automat
cally reduced the demand for this par
ticular kind of credit, and bankers
were inclined to agree that any broad
ening in the inquiries for call money
would quickly be reflected in a higher
rate. In the time money market, for
the first time in many weeks, limited
quantity of new money was available
at 912 per cent. a new high. 1t was
reported that brokers were ready to
take time money without regard to
rate, but the supply offered was ex-
tremcly small in proportion to the
want. Some bankers yesterday ex-
pressed the view that a revival of
lending of money for stock market
purposes on time on a large scale is
unlikely, because of the evergrowing
desire of the lending institutions to
keep their assets liquid Such loans
arc neither callable nor rediscount-
able at the Federal Reserve Bank.
Like the stock market, the European
exchanges were quiet, and revealed
only slight changes. The general
tone, however, was steady. Corn and
wheat prices were higher on the basis
of the favorable government crop re-
port, and an excess of rains caused a
rally in the cotton marts