Omaha daily bee., 1920-03-18
Financial
Gbe Nem D ork Gimes.

Chicago Tribune-O Omaha Bee Leased Wire.
New York, March 1.-THE stock
market was divided along a sharply
defined line of cleavage between
period of weakness and one of
strength. Call money got as low as
o per cent, but it seemed as though
the consideration of reduced carry
ing charges for shares on margin
had less to do with the rise of the
late afternoon than some other fac
tors. Prices turned from an uncer-
tain and weak trend after Washing
ton dispatches recounted Secretary
OF the Treasury Houston's comment
on future taxation needs before the
ways and means committee of the
house.
The stcretarys opinion. as the news
tickers presented It, to the effect that ex-
cess profits imposts should be abandoned
ana other forms OF taxation found in
stead. brought stimulus to speculative
purchases of stocks and the movement
broadensd when the street considered the
secretarys proposal that undistributed
prorlts or corporations be made subject to
heavy taxes under new revenue law.
Traders deducted that the carrying out
OF such plan would mean both large
stock dividends and increased dAtribu-
tion of cash dividends.
Locomotive Stock Advances.
Baldwin Locomotive responded TO stock
dividend talk with an advance of more
than IL points. Motor and railroad equip
ment issues rose from to points in
the final hour and steel and petroleum
shares moved forward. The close of trad
ing came with industrial stocks around
their best quotations of the day, their
r.ny L ri,,y ya1 raSt with
their flabby appearance half way through
the session.
Concident with the rising OF demand
ioans to 6 per cent occurred a trifling
easement in the tone of time loans. Col
lateral loans, which had been firm at Sh
per cent on Tuesday, were offered for 60
and 30 days at per cent by few
lenders, and six months funds were also
were not large From banking comment
the time has not yet arrived to speak OF
a permanent decline of money rates, ana
1t is not too much to expect that before
a new complexion comes over the market
the Federal Reserve banks statement Will
have to show a decline of borrowings OF
other institutions. The aggregate OF such
leans to the local institution. mentioned
biity as indurser of bills discounted with
otker federal reserve banks stood last
Saturday at mere than ss4,5o0.oo0.
Much Product in Preparation.
Steel trade surveys of the week showed
today that a tremendous amount of prod
ucts are being prepared for market despite
the handicap of car shortages and its ef-
feet on moving materials and fuel. The
Iron Age noted that the ingot output OF
February averaged $4,000 tons daily,
figure close to the highest record Pre-
sumably the increase of manufacturing
during the last four years had something
to do with so large a production at
time when transportation facilities were
below par At the same time, the report
discloses exceptional activity which evil
IDENTIFY is having counter part in fin ed
lines The fabricating shops were bt %ed
in February to 95 per cent of capacity,
the largest months business for two years:
Tho trade periodical notes that much of
this business is for conducting industrial
plant extensions, but 1t Is fair to assume
that the housing and office necessities of
the country are also a driving influence
behind the big structural orders.
The foreign exchanges We're reactionary,
a decline being not unexpected after Tues
days substantial rise.