New-York tribune., 1920-06-23
Stocks Continue
Inactive; Money
Rates Up Again
Call Loans Touch IL Per
Cent; Street Hears Ru-
mors of Investigation of
Oil Stock Flotations

High rates for call money, rumors
of sensational developments in con-
nection with the fotation of oil secur
unscttlng reports of revival of rail
way labor troubles, we're the principal
factors bearing upon the speculative
security market yesterday. They
served mainly to check constructive
operations rather than to induce any
vigorous selling for tie short account.
the market continuing in the state of
inertia, which has been its chief char
acteristic for several days. Such fav-
orable developments as the arrival of
s4,000,000 in gold from Canada and
rise in sterling exchange to 81 brought
no appreciable response.
Once again the market displayed
moderate degree of strength in the
early hours when some professional
buying lifted number of the specu
lative issues higher. But as soon as
call money rates began to work up
ward the demand from this quarter
fell away, and the list sagged off. AS
indicating how utterly lifeless the
market was. less than 900 shares Of
United States Steel common changed
nduOS III tNe 1ull HVe nOuTS
Steel, normally one of the leaders.
had to give way to stocks like Trans
continental Oil, Studebaker, General
Motors. and Vanadium. 1t was mar
ket which showed no definite trend;
some issues moving up and others
down, the changes in no case being
large. Chemical shares, under inAu-
ence of the same merger rumors that
have been in circulation for a fort
night, maintained firm tone in the
face of general lrregularity, while
certain of the low priced oils, notably
Transcontinental and Middle States
we're in demand at rising prices.
One of the restraining influences in
the market had to do with rumors that
the Federal authorities after search
ing investigation are about to proceed
against certain Wall Street houses
active in the distribution of a number
of unlisted oil promotions. 1t has
been known for more than a week that
important developments along this line
we're impending How the Street has
escaped an investigation as long as it
| has is question in view of the huge
outpouring Of questionable issues last
year when the public absorbed any
thing and everything.
The rise in call money to II per
cent in the afternoon. duplicating the
performance of the day before. did not
occasion any surprise in quarters IN
touch with the domestic monetary sit
uatcn. The banks are still laboring
under the strain of the June Is opera
tions and at the same time are running
into the period around July when
credit demands are exceedingly heavy.
Prospects of a tying up of additional
credit by increasing transportation
congestion due to labor difficulties
naturally add to the uncertainty.
An advance in sterling exchange to
ST. for the pound. esta blished the rate
on Hondon at the highest level since
April when sterling reached S4.03.
The movement was followed by de-
cline at the close, but this did not
Offset the favorable impression made
by the sustained Improvement in
sterling over period of fortnight.
In this connection the May statement
of the Department of Commerce was
interesting for it disclosed an increase
of s55.ooo,ooo in. exports and de-
crease Of $64,00O,OOO in imports com
pared with April. May exports reached
total of s739,0 900 against $685.
100000 in April. The figures run con
trary to the predictions of many trade
experts who have been talking since
the beginning of the year OF a
steady falling off in exports due to
the instability of foreign exchange