New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-06-08
Market Yields
As Money Rises
To 10 Per Cent
Professional B. ars Sell
Stocksin Afternoon; Trad
ing Dull as Street Waits
on Chicago Convention

Wall Street marked time yesterday
waiting for the Chicago convention to
get down to its task Of nominating q
Presidential candidate to carry the Re-
publican colors. The stock market con-
| tinued to move along the lines of least
/ resistance in desultory fashion. A
squirt in call money to 10 per cent in
the afternoon somewhat enlivened the
! proceedings and gave the, professional
| bears an argument on which to sell.
Stock prices declined in the closing
hour, after the market had given q
| fairly good account of itself earlier in
the day, although it was a thin session
both ways. Sentimentally the decision
of the Supreme Court holding the Vol
stead prohibition enforcement act con-
stitutional had an effect, although 1t is
doubtful if it really counted for much
as a direct market factor.
1t will be with a great real Of relief
that the financial community learns Of
the nomination of candidate at Chi
cago, for it is quite generally believed
that this will lift the market out Of Its
present condition Of suspended ANNA
ton. The convention naturally Is OF
paramount Importance at the moment
proceedings at the Western city are
being watched closely. In fact, there
is. more interest shown in that direc-
ton than in the day to day backing
and filling Of stocks. To-day the gov
eminent bulletin setting forth the con-
dition of the growing crops as of June
will be issued, and according to rri-
vate predictions is expected to indi-
cate considerable improvement.
For most of the trading session yes
terday stocks continued the recovery
IN CT of ha in
dustrial issues which have been dis
playing steady improvement advanced
further. Among them were Interna-
tional Paper, the Mexican oil issues
notably Pan-American Petroleum
shares, on which 10 per cent stock
dividend has been declared; United
States Food Products, United States
Industrial Alcohol, Corn Products, Re-
tail Stores, Crucible Steel and Baldwin
Locomotive. But on the late afternoon
recession all Of these issues fell OF
earlier gains, leaving a majority Of
substantial net losses at the end OF the
day. Steel common, which had not kept
pace with the other industrials on the
forenoon rally, dropped more than q
point at the close.
The run-up in call money in the at
ternoon tended to emphasize the short
ness Of the money rationS upon which
the market is operating. Because Of
the unsatisfactory bank showing on
Saturday, few Of the banks called
loans to improve their reserve position
and the brokers whose loans were
called on trying to replace the loans
elsewhere, found they had to bid the
rate up as high as 10 per cent to OBJ
tain accommodation. This Is not new
condition In the call money market.
Brokers in need Of funds have had to
contend with this situation of and on
for several months.
The immediate outlook for stock ex-
change money supplies 10 none too
bright Between now and the middle
of the month the banks will be con-
fronted with meeting the heavy drafts
on account Of payments on the second
installment Of Federal tAxea. while the
end Of the half year when corporate
disbursements Will run in excess Of
$300, 900, 900, is close at hand.
In the foreign exchange market the
tendency was downward with special
weakness in exchange on Hong Kong
and Shanghai, rates on China declining
rather sharply In sympathy with an
other severe fall in the price Of silver
metal in London and New York. Silver
was quoted in New York yesterday ct
94A cents an ounce, of 3M cents. At
the current quotation, silver 10 OF more
than 40 cents an ounce from the high
record level Of few months ago.