Evening star., 1920-07-06
STOCKS ARE FIRM;
MONEY IS STRONG
Politics Not a Factor-Credit
Accommodation Import
tant to the Street.
BY STUART p. WEST.

NEW YORK. July 6.-Despite the
fact that the federal reserve bank
statements issued Saturday did not
come up to expectations, and were. in
1act; quite a disappointment, the
stock market today went ahead with
the program which nearly everybody
in Wall street had laid out for it to
follow after the holidays
Prices opened higher and continued
to move forward in a way which was
suggestive OF a real desire to buy
rather than mere marking up
process. At the same time there was
a slight, but, nevertheless, distinct
let-up in the strained conditions
which had existed in the money mar
ket all last week. and which, as was
generally recognized. was due to the
temporary tie-up of funds needed to
pay interest and dividends at the turn
of the half year.
1t was too early, of course. for the
loan market to feel the full relief
from the return of this interest money
to the repositories.
The call money renewals per
cent-was still pretty high: it prob
ably will ease off to per cent within
the next few days. But the fact that
there was an abundant supply for
fresh borrowing purposes at 8 per
cent and lower was entirely satisfac-
tory to Wall street. 1t showed that
the money strain was passing in the
manner anticipated.
Politics Not Influential.
The nominations at San Francisco
hardly exerted much influence one
way or the other. The main thing
was that there was nothing of rad
ical nature in the democratic plat
form and that no candidate of a rad
ical type had ever stood chance.
All this was known when business
was suspended last Friday, and what
ever hesitation there had been on ac-
count of what might happen at San
fectually dispelled. 1t was not poll
tics but money that the market was
mainly concerned about and the
prospect that for the next month and
half, at least-that is, until the
crop-moving period. there will be
purposes. was what counted in the
calculations of the day.
Trading More Active.
Trading was much more active as
the upward swing got under way.
All sections OF the list, moreover, came
in for their share of attention. It was
the high-priced issues like Mexican
Petroleum. Pan-American, Crucible
Steel and Baldwin Locomotive which
naturally had the largest gain. The re-
treat of the remnant of the short
interest was revealed in the sharp up
turn in such stocks as American Wool
and Central Leather, which have had
to contend with unfavorable trade
conditions and which have therefore
been special objects of bearish attack.
The motor and tire group, in which
operations for short account have
likewise been active, were in demand
conspicuously.
The real leaders, however, were the
Equipments. the Oils and the Inde-
pendent steels. Baldwin Locomotive.
which had been prime favorite of
large speculative interests which
turned on the market last week,
forged ahead consistently. American
Locomotive again crossed par, Haskell
high. Vanadium Steel selling ex-divi-
dend easily made it up. Replogle
Steel. which has never been distributed,
had one of it's characteristic jumps.
Bond Market Strong.
The bond market again today was
under the influence of the reinvest-
ment demand which is a regular fea-
ture after the half-yearly disburse-
ment of corporate interest and divi-
dends. The fact that these payments
were larger than usual this year was
Oil ehNNiNiohoA SSle'OAA ~. SAAS 0~N >HNo
and activity displayed in all parts OF
the bond list.
United States libertys were the lead
ers. The third ANS crossed 80 and got
up practically to their high Of their
first rally a month ago. The fourth
AZ crossed S6 again. In the for
eign government division the princi-
pal demand made. itself felt in the
Belgian issues. The SKIES of 1921 and
the skies Of 1925, both came on the
board for the first time. the former
selling at 9SAa and the latter around
81. The TVS were very active be-
tween 99A and 99k and it is expected
that before the public appetite for
these bonds is satisfied they will be
well across par.
Among the corporate issues the
favorites were the Equipment Trusts
and short term bonds put out within
the last few months. The Louisville
and Nashville sevens made new
high at 101A. The Pennsylvania
sevens at 1929 were back within less
than point Of their top.
The Curb Market.
An accumulation of buying orders
over the holidays caused advances on
the curb market today. However.
many Of the professionals appeared
to be against the trend and sold some
Of the leaders on the upturns- This