The Washington herald., 1920-05-09
STOCK VALUES.
MAY GO HIGHER
Belief Generally Is That
Present Rally Has Not
Yet Run Its Course.
MARKET IS oVERSoLD
Technical Condition Still
Favors Buying Side;
Heavy Short Interest.
MARKET IS OVERSOLD

u .
Heavy Short Interest.
Some Of the so-caIled tape read
sers after the close yesterday main
tained that the action Of quotations.
following the severe break of last
week and the partial recovery dur
ing the early part of this week, in
dicated that prices are about to
move to higher ground 1t was ar
gued that the market had been
oversold in the fortnight of declines
aRnd 1t was but natural to expect a
nbstantial recovery within the next
few weeks. and 1t was insisted by
those included in the more enthu-
dastic group that the trend of the
market over the next three~or four
weeks will be upward.
The action of United States Steel
eommon was looked upon with IA
For, particularly as most of the re-
toyery from last weeks low quota
L
Nose Of business yesterday. Con-
ldering the large amount of money
at has been put back in various
~ Nperties during the period of
prosperity, 1t is safe TO assume that
fhere are many stocks in the list
Ehich are now selling at quotations
which render those issues highly at
1sractive. The good steel stocks, the
equipment stocks, and some of the
rail issues. at the moment are IA
Sorites with the rank and file, al
though there still is an unusual de-
gree OF bearishness entertained in
some Of the more speculative cir
cles.
West Turns BuIIIsh.
There has been a substantial
amount of selling for Western ac-
count during the past three weeks,
but some Of the large wire houses
stated on Friday that there had
been a. reversal of the situation in
this respect and that during the last
couple of days there had been a
moderate amount Of buying for
Western account.
The easing off in quotations for
Baldwin Locomotive stock on Fri
day was said to have been due to
liquidation of speculative accounts
by individuals who had paid higher
prices for the stock earlier in the
week and became apprehensive re-
garding the market situation and
thrown over their holdings.
strike Talk Resumed.
In some brokerage circles there
was a report current that we are
on the eve of a large railroad
strike. but in the best informed
quarters little apprehension was en-
tertained as to the outlook in this
respect. Just what a big railroad
strike would do to the stock mar
ket is prOblematical at the moment,
although there are some who pro-
fess to believe that It would have
a dampening influence over senti-
ment generally. Notwithstanding
the reports of this character all
operations there appeared to be
good buying of the rails, with a
result that quotations for these is
sues moved up rather sharply. This
IN itself was interpreted as indl-
eating that the railroad situation
Is not as serious as many believe,
or desire to believe, because OF their
possible stock market commitments
to the short side.
OIL Issues Prominent.
Buying of Royal Dutch stock was
a feature in Fridays market the
issue moving up a new high quota
ito no nthe present advance. Some
of the brokerage houses with for
eign connections said that most of
the buying orders in this issue rep
resented purchases for foreign ac-
count. there having been an eXcep-
tionally bullish demonstration in oil
stocks generally in London and Am
sterdam. Atlantic Gulf and West
Indies steamship lines stock was
another strong feature, moving up
TO 174, but later reacting to 171S,
as against a closing quotation of
l69% on Thursday. This issue dis
played strength on the announce
ment that the company's oil sub
sidiary had brought in a $4,000
barrel well on Monday last. bring
ing its total production up to over
500. 900 barrels. The buying Of the
stock at times throughout Fridays
session was urgent and it was said
Il represented accumulation by
strong interests.
Virginia Iron, Coal & Coke was
smother feature near the close OF
me week. moving UP to-aboFe 10S,
ns against a quotation of around 95
only a short time ago. The advance
m this issue was thought to have
resulted from reports that this cor
poration is on the eve of declaring
D substantial extra disbursement. 1t
b understood that earnings of the
evaporation are of unusually large
proportions and the outlook is more
favorable than IT has been for any
time in many months
Buying of Steel Stock.
While opinions stock market
wise were decidedly mixed in the
financial community at the close Of
the week. some of the best posted
Wall Street interests professed to
see signs of accumulation of many
issues which held firm when the
reaction took place near the close
of the week. The fact that dullness
obtained on each occasion when
heavy buying ceased indicated that
nquidation for the time being had
bbout run its course. Lackawanna
steel, Bethlehem 'B," United States
Steel common, American Locomo-
live. American Car & Foundry. and
certain other issues included in the
so-called steel group, were conspic-
nous features in this respect
Money Factor.
Money rates. which had been fair