The Washington herald., 1920-08-22
WEEKLY STOCK
MARKET STUDY
Important Interests Believe
Bulish Tone VIII Sur
vive August.
OPINIONS ARE DIVIDED
Skeptics Think Stiff Money
Rates VIII Prevail Dur
ing Next Month.
OPINIONS ARE DIVIDED


There was some important inter-
ests in the market who were IN
cIined to believe that the rally
which occurred in the trading of
Thursday and throughout Fridays
session would continue at least!
throughout the remainder Of the
current month, but some skepticism
was entertained as to the Likelihood
o. the maintenance Of consistent ad-
vancss I'D TO the close OF the year.
II was felt that in September money
rates would stifIen somewhat and
that this would act as a deterant
element stockmarketwise. Steel
stocks were frm and the advances
scored were well maintained in such
issues as United States Steel COM
mon, Crucible, Republic, Lackawan-
na- etc, while the equipment issues
such as Baldwin Locomotive. Amer
lean Car and Foundry. American
Locomotive, etc. enjoyed sUbstan-
tIal gains following tho losses sus-
tained earlier in the week.
Foreign situation.
The more favorable news emlnat-
ing from Europe reIative to the Rus
sia-PoliSh situation naturally acted
as an incentive for the re-estabIish-
nent Of confidence in the market
the reveTses Of the Reds being well
received and a signal for a cOnsid-
cradle covering of shorts. As a
matter OF fact bankers felt that the
short side Of the market had been
temporarily overdone and ii had be-
come self-evident that at the first
signs Of any constructive news there
would be a scramblinE Of shorts 10
cover. Il was remarked in some
conservative banking quarters that
whenever buying orders appeared in
the market there was very little
stock available except at higher
prices than the prevailing quota
tions. with the result that with any
degree Of bidding stocks were easi-
y marked up to higher ground.
Motors.
Motor issues which had been
weak for sometime past. gave a
fairly good account Of themselves
on Thursday and Friday easily
moving up to higher quotations than
any recorded in recent weeks. It
was recognized that a substantial
short interes- had been accumuIat-
ing in This group Of stocks because
of the unfavOrabIn reports which
we're coming to hand from day 20
day relative to the conditions Of the
trade. The announcement by Presi-
dent Chandler Of the Chandler Mo-
tor Company that earnings are hold
ing Up we'll. and that the present
so dividend on that Company's
stock can be maintained indefinitely
acted as stimulating influence for
the motor shares and gains of from
to points we're scored in a num-
Der Of the stocks included in this
Eroup. Il Is known, however, that
the motor companies are curtailinE. I
irrespective OF any statements that
may be maGo by interests identifed
with the trade There has been
some falling off in the motor car
business brought about by various
CsyclODme7ts and whereas a few
months ago il was impossible to OBJ
tain cars for delivery under from
three 70 fve mcntns. il is now pos
sihle to secure almost immediate de-
livery on practically every car
manufactured.
There was unusually bullish talk
regarding Crucihle Steel some care
fuI observers of the affairs of that
corporation strongly maintaining
that this stock will sell above 200.
within the next two or three
months. The company has declared /
several extra dividends and plans,
row under consideration are said 70 /
provide for further disbursements of /
this character. with the ultimate
definite plan of maintaining an per
cent dividend on the amount Of
stock that viii be outstanding after
the issues created through such dis .
public. Earnings Of the company
are said to he enormous with indi- /
cations Of t1ai- continuance at the
present handsome levels.
shipping shares.
Shipping shares eased off consid- ,
crably during the week following
the announcement of the cut in =
oce an freight rates by the French I.
line. Subsequently. however. there
was a partial recovery in this group
OF issues. although the present level .
Of quotations represents a decline
Of many points from the highs re-
corded earlier in the year. While &
the passenger business Of the steam /.
ship companies has held up remark /
ably we'll, il is no secret that |.
freight returns have been meager.' /
Taken a whole the shipping sit ,
Uation does not present a very at /
tractive aspect at the moment. al |
though as has been the case in the !
rsst change for the better might !
develop on comparatively short no
tice. /
Oils.
oil issues have not yet regained |
their popularity Of a few months !
ago. and there are many conflicting /.