Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-19
BY STUART P. WEST.

NEW YORK, June 19.--The stock
market situation. taking it since the
first of the month. has hinged upon
three things-the republican nomina-
tions at Chicago. the progress of the
crops and the outcome of the meas
ures taken by the federal reserve
authorities to restrict bank credits.
Wall street is entirely pleased with
the result of the nominations.
Reports from the wheat fields have
been uniformly favorable.
They all indicate the considerable
Improvement in the condition of the
fetal figures at the beginning of the
month, and a much brighter outlook
for spring wheat than a. year ago.
The trouble with the corn crop is
that it was late in getting tarted.
This makes it liable to injury from
frost later in the season. But other
wise the corn prospect is good. There
is a smaller. acreage but higher
condition than at this time in 1919.
The extremely poor status of the
cotton harvest has to be recognized.
but taking the agricultural outlook
generally and considering tne large
carry-over of wheat and corn from
last years crops, it appears to be
well up to the average. With this
assurance and with the extremely
high price level the chances favor
another very prosperous season on
the farms, and this is the main con-
sideration from the standpoint of
businessmen and from the standpoint
of Wall street.
Efforts Fairly Successful.
The success of the efforts made to
inf Hal nd fC
strengthen the banking position in
advance of the crop-moving period
has still to be determined. But the
preliminary evidence has been en-
| couraging.
1t looks as if the new scale of fed
! eral reserve discounts will prove eff
| fective in limiting fresh bank loans to
| enterprises which are necessary to
| bring about liquidation in the less es-
sential lines.
At the same time it is very clear
that another considerable transfer of
gold from England to this country
| will take place in the near future.
| The addition of some $26,000,000 with
1 in the last three weeks to the Bank of
| Englands stock of gold, the rise of
| 10 cents in the pound in sterling ex-
| change and the established fact that
American houses have been promi-
| nent in the recent bidding for gold
in the London market-all point to
| the early beginning of large move
| ment to this side. They are the same
| combination of incidents that pre-
| coded the fifty million dollar gold i'm
| ports of February and March.
| stock Market Closed Firm.
The stock market. particularly to-
! ward the end of the week, commenced
/ to make some response to these ia
| voring developments IT has been
| feeling its way slowly. as it always
| does at this time of year But the
| drift is Enthusiastically upward, and it
! has been pronounced in the case of
individual groups of stocks which
| have the prospect of good earnings
| for the next six months or year, and
which are not confronted with the ne
cessity of adjusting themselves to
! less active conditions in business that
| are present in certain lines Among
! these are the better grade of oil
! stocks the equipments, the sugars,
| the alcohol shares and the tobaccos
| Naturally the market for the rails is
| awaiting the decision of the Interstate
Commerce Commission as to the amount
OF rate increase which it will grant after
the hearings have been completed at
Washington. Those who have followed
the course of these hearings cannot but
be impressed by the comparatively small
opposition that has been made to the
appeal of the roads for a rate schedule
which will. allow them to- properly dis