New-York tribune., 1920-08-31
lnd'lstrials Sag,
Rails Hold Strong;
Call Money at 10
Professional Bears Use
Strike News as Argument
for Selling, but Fail to
Bring Out Amy Stock

wall street, on resuming operations
yesterday, found new cause for worry
or at least thought it did, in the local
traction strike and the threat of 9
walk-out of anthracite miners, develop
ments which occurred over the week
end. These factors, together with q
( less favorable banking exhibit at this
center at the closs of the week, were
enough to encourage the bearishly in
clined. professionals. who were still
smarting from the effects of the partial
recovery of the week before, to a re-
newal of selling operations on a mod
crate scale.
Flow of funds to the interior from
New York last week in connection with
the seasonal movement in that direc-
tion In preparation for financing the
marketing of the country's crops was
quite heavy, so that little surprise was
occasioned by the jump in call money
rates to 10 per cent late yesterday
This, nevertheless, made another sell
ing argument for the bears The in
part of the list lost considerable ground
for time. On the other hand the
rails continued to give an exhibition
OF vigorous strength, bearing out all
the good things that have been said
OF the railway issues lately. Strength
OF this part of the market was all the
more impressive, perhaps, In view of
the backward tendency Of the indus
trials and because of the fact that the
rails last week enjoyed rather pro
nounced recovery. Many of the old
line dividend paying rails that in the
prev years were classed among the
investment shares sold yesterday at
the highest prices in many months
The buying of the rails was as con-
fident as it has been at any time since
tho rally started, although it was not
so active. Indeed, the whole market
was rather dull, the total turnover OF
business not running very much In ex-
cess of 100000 shares.
1t is probable that the speculative
selling of the industrial shares would
have been carried considerably further
yesterday had it not been for the fact
that the rails acted so we'll. The pro.
1esslonals aligned on the short side
certainly had everything in their favor
yet all things considered, they did not
sharply and moreover brought out
practically no real stock whatsoever
This element held, however, that con-
dltlons were not favorable to a furthe Ell
recovery at this time, whereas it might
be possible to bring about quite q
substantial decline from current levels
50 long as this feeling is entertained
! and so long as it is found impossible
to attract a public following, it is tc
be expected therefore that the pro
fessional traders will work fo1
reactions
Gold import figures are interesting
Tor they indicate that the United
States Is receiving a great deal of
metal just at a time when it can best
be used in bolstering up impaired bank
reserves. Bankers here are buying
gold in London and so far have
brought in in excess of S3O00O,OOO on
that account, shipment of 81 800 OOC
being on the high seas en- route tc
New York at present. French govern
ment gold is also on the water, while
metal held on deposit in this country
to the credit of the Argentine govern
ment IS now being released to meet
the amount due American firms on
balance. French gold shipments are
expected in the course Of the next
month or two to reach q total Of at
least $50,O00,000. The foreign ex-
changes were irregular.
The commodity markets continued
IN a state of confusion yesterday. 1t
has been long time since the Street
has seen anything that would even
approach the current market in cotton
futures. A decline Of $40 bale oc-
Cured yesterday. During the past few
weeks violent swings of this extent
have been Of quite common occurrence
and the wonder is that the trade Is
able to operate under such conditions