New-York tribune., 1920-04-28
Stocks Decline
After Displaying
Early Strength
Forenoon Rise Pronounced;
Call Money Touches 10
Per Cent in Afternoon;
Steel Earnings Favorable

Violent fluctuations were the rule
in the stock market yesterday, where
prices rose strongly in the forenoon
and fell back in the afternoon. The
early upswing in prices, which reached
large proportions, saw further strik-
ing recovercs in the majority OF the
standard industrial shares, as we'll as
moderate gains in the rails, on spirited
bidding by professional shorts and
resumption of operations for the ad-
vance.
The movement was we'll sustained
until after midday, when selling orders
began to appear in increasing volume
as call money rates started 10 mount.
This pressure became pronounced in
the final hour, when it served to un-
steady the whole list, causing declines
that more than cancelled the ground
gained IN the earlier upturn. Call
money touched 10 per cent at the
! close. The market was of such pro
fessi character that the setback
, from the forenoon rally caused little
excitement and no disorder. The de-
cline sort of dashed the hopes of the
stock market bulls. who were begin
ming to believe that stocks had re-
covered from the unsettling effects
of the smashing fall in prices of last
week.
For a time during the forenoon the
market developed many of the char
acterlstics of the trading of a fort
night ago, when pools were operating
and special issues were rising sensa-
tionally. A number Of the recent spec
ulatlve favorites came back with
rash, among them being Baldwin Loco
motive, which at one stage Of the fore
noon rise got above 120 General Mo-
tors, American Woolen, Vanadium
Steel, Stromberg, Carburetor, Chandler
Motor and Crucibe Steel The buying
OF these issues appeared to be rather
urgent at the height of the movement.
Reading common stock, which had such
a sensational advance the preceding
day after the decision of the Supreme
Court, went to new high of 94%,
while the first and second preferred
issues also recorded large gains, which,
IN contrast to the common stock, were
held to the close. The selling in the
afternoon brought swift decline in
practically all of the industrias, and
Reading common dropped points
from the early high. The closing price
range Ti, was , extremely irregular,
yesterday suggested that the main sup
port on the recovery since Monday
has come from purchases for the short
account. For as soon as this buying
slackened prices tended to work lower
Action of stocks in general indicates
that the confidence necessary to make
possible sustained recovery is still
lacking. The trading element now
working in the market is given to
quick shifts in position and apparently
has not yet made up its mind with re-
1o
still have considerable stock to dis
tribute and are likely to do so at the
first opportunity.
The splendid showing made by the
United States Steel Corporation for
the quarter ended March 81 last, when
balance applicable to dividends
amounting to more than S42 100000
was earned from operations, cannot
help but have beneficial effect upon
sentiment The figure represents an
increase Of approximately $1,000, 900
over the earnings for the December
quarter of 1919. Earnings were better
than the average unofficial estimates.
The directors declared the regular
dividends
The Street did not take kindly to the
proposal of Congress to impose a re-
troactlve tax of 80 per cent on war
profits to raise. funds for soldier re-
lief. The feeling in the financial dis.
trict is that some alternative should
be found to meet this problem 50 that
the burden shall not be thrown upon
productive enterprise, which is already
carrying an onerous load. Withdrawals
of $17,o0o,o00 from the banks for gov
ernment account were RESPONSIBLE
mainly for the rise in call loan rates.
Announcement was made of the with
drawal of s6,ooo,o0 in gold for ship
ment to Argentina. Exchange moved
against London for time and there
were reports Of additional large i'm
ports OF gold from England, after
which it rallied above s3.Sl