The Washington herald., 1920-06-20
HIGHER PRICES
MAY SCORED
Inside Distribution Under
Way Which May Mean !
Further Advances.
WATCH INCOMING GOLD.
Pool Operators Use This as
a Basis for Temporary
''Bullish" Propaganda.
WATCH INCOMING COLD

There was the usual weekend
rally in the stock market on FRI
day and Saturday, and many care
full observers of the situation ex-
pressed the opinion that during
the coming week there will again
take place a reaction throughout
the list. although It is regarded as
improbable that many of the lows
recorded during the early part or
this week will be exceeded In what
ever general downward movement
develops. The money situation con-
tinues an absorbing topic and poll
tics also has been and still contin-
ues a factor in general market af-
fairs. 1t Is contended in the bes,
banking quarters that there will
be no pronounced stock market
movement until after the Demo-
cratic convention on June 20 at San
Francisco. Much will depend on the
nomination at that time and 1t Is
felt that after IL Is definitely
known who is to be the chief op-
ponent of Senator Harding. there
will be a more definite trend to the
market.
Prepare to Unload.
While the general opinion at the
moment Is that irregularity will
characterize stock market transac-
tions over the next couple of weeks.
there are many careful observers of
the tape who take the position thar
in July there will be an upward
movement of considerable proper
tions and these interests contend
that when prices have Den ad-
vanced to several points higher
than current quotations there un-
questionably will be a distributing
movement. because 1t is felt that
the so-called big interests have
substantial amounts of stock which
they will feel impelled to hand to
the public when buying from this
source develops later on. The pub
lie always waits for a big rise in
the market before participating to
any appreciable extent and expec-
tations are that there will be a
repetition of past performances in
this respect.
Gold Movements.
The receipt of gold from Canada
during the week was regarded as
of some significance and predic-
tions were made that within a COM
paratively short time there will be
a liberal movement of the precious
metal from Europe to this country
in connection with the Angio-
French bond maturity on October
Is next. The fact that Great Brit
ain has purchased in the open mar
ket an amount of. the Anglo-French
bonds said to total in the neighbor-
hood of $780, 900 is a significant
factor having a direct bearing on
the gold movement situation and IL
would not be surprising to many
careful observers IL there should
take place a further absorption of
these bonds so that by the time or
the maturity Great Britain will
have provided for its portion of the
loan in its entirety. France. how
ever, has not yet indicated the
manner in which IL will meet its
half Of the obligation on the ma
turity date, In the best banking
quarters it is regarded as a GER
tainty that that country will send
gold to America to cover a part of
the amount and possibly arrange a
short term note issue for the re-
mainder.
Estimates of the probable amount
of gold that will be received range
all the way from s50,0oo.o00 TO
s10o. 900. 900. the receipt of which
should have an important infu-
ence over the local money market
situation. These are factors that
market operators are following at
the moment with keen interest.
oils and Sugars.
Those who follow financial af- |
fairs closely are known to have |
been picking up the oil and sugar |
shares in recent weeks in the ex-
pectation that a little later on there |
will be a substantial advance in !
this group. Recently the buying !
has been such as to have resulted [
in substantial rallies in such Is
sues as Mexican Petroleum, Pan
American Petroleum, Sinclair Oil, |
Texas Company and Santa Cecilia |
Sugar Companies stocks. The San
IA Cecilia issue of 900 shares Of |
no par value has been listed on the |
New York Stock Exchange. trading |
having been begun on Friday at 1
from "a to 25. these quotations rep
resenting a nadvance of about 6 |
points from the levels obtaining a |
week ago. The company, accord
ing to those best informed, is earn
Ing at the present time an amount
sufficient to permit an extra distri-
button to stockholders which 1t rs
expected will be made about July |
Is. Cuba Cane Sugar was bought |
by strong interests and there was
feeling that both of these stocks
will enjoy substantial degree of
betterment during the coming
week.
Crucible shorts Worried.
Steel stocks under the leadership
of Crucible Steel and Baldwin Lo-
connective were firm near the close
of the week with fairly substan-
tial advances having been scored
In a number of the stocks included
In this group. 1t was said that the 1
buying of both Baldwin and Cruci- I
bic had been by interests usually
associated with some of the strong
est banking groups of Wall Street 4
and therefore was looked upon as
of considerable significance. The
declaration OF an extra dividend by
the Crucible during the week was
a signal for selling of the stock
which Immediately declined several
points following the annouce-
nent, but later in the week recov-
cred large part of the decline. U.
8. Steel common although quiet dis
played a firm undertone and held
well on all drives that
were made in the market by the
bear crowd. The buying of Steel
common Is said to have been ex-
cellent for some time past.
Rails Favored.
Railroad stocks are looked upon
by many careful students of stock
market affairs as being in line for