Evening star., 1920-07-01
STRONG UNDERT0NE
WEAK IN ACTION
No Disposition to Accumulate
Stocks Over Holidays.
Money Is Firm.
BY STUART p. WEST.

NEW YORK, July 1.-The curious
part of the Wall street situation to-
day was the practical unanimity OF
houses regarding the immediate out
look for the market and yet the en-
tire unresponsiveness of the market
itself.
Nearly all the letters which went
out from brokerage offices this morn
ing took a favorable view OF the pos
sibilities after the Fourth OF July
holiday They predicted that while
money would not be cheap. it would
be in more abundant supply, and they
expressed the opinion that TINS would
encourage the resumption of opera
tions for the rise, not in any general
way. but in numerous individual
stocks which are especially strong in
their earnings position-present and
prospective.
1t might have been supposed where
his view of things was SO widely
disseminated that it would nave IN
duced some advance buying on the
reasoning that it would be cheaper
to carry stocks over the holiday than
to run the Sisk of competing at
higher price fevels with those who
were delaying action until they saw
the market actually start TO move.
But as matter of fact there was
very little evidence of new buying in
any quarter. On the other hand
there was still less evidence of any
desire to sell. Where prices moved
at all they moved forward, as a rule.
The tone was consistently strong, ana
even the highly speculative element
the class that is most Keen 1or sur,
face changes-were not perturbed
by the high money rates tnat con-
fronted Wall street borrowers
No Buying Movement.
If was plain. however, that the pro-
fessionals on the floor of the exchange
and around the offices were fighting shy
of taking on more stocks over the three
day suspension of business during which
time they would be paying 10 per cent
for their money. The marking up OF the
call loan renewal from 9 to 10 per cent
pccasioned no surprise. Everybody real
lied that it reflected scarcity that
would not last beyond tomorrow; there
fore, while the higher rate restricted
buying it did not provoke selling. Trad
ing was even duller than on the two
preceding days.
Alcohol Stocks.
While those who are most bullish
on Industrial Alcohol say that the
real move has not yet started. it is
very noticeable that it is constantly
working higher. The record of the
last few weeks in the stock has been
series of little ups and downs sell
dom exceeding / 1a to points either
way. But each little upswing carries
the price a bit higher. Today going
through 93A, Industrial sold at the
highest 1t has in some time The only
danger about the bull position in the
stock is that so many people are bull
ish on it. knowing the enormous
profits which the denatured alcohol
III =, wi nf
the product at SLIP gallon.
United States Food Products usually
moves at a more leisurely pace than
Industrial. but 1t, too. Is reaping the
benefit of the extraordinary demand
for commercial alcohol at what are
virtually famine prices. There was
a little buying in United States Food
today in anticipation Of the dividend
which comes off the price of the stock
tomorrow.
Market Acts Well.
Every one of the market letters sent
out by the wire houses before the
opening of business today used the
practically same term in describing
the market situation. This was to
the effect that the market acted re-
markably well yesterday in the face
of high call money rates. These
same letter writer's also took the
stand that a better and more active
market is looked for next week. 1t
was further pointed out that there
is a scarcity of offerings of stocks on
any little buying movement, while on
the way down there is good demand
for stocks. 1t is the belief that it
would not take much buying to start
a definite upward movement and that
under such circumstances the large
short interest would have a hard time
buying back any large amount of
stocks.