Evening star., 1920-01-04
MARKET INDICATES
SURF ACE STRENGTH
Conservative Quarters Mind
full of Domestic and For
eiqn Problems.

NEW YORK, January (by the AS
sociated Press).-Taking surface con-
ditions as criterion. the week in
the stock market suggested that the
financial community views the outlook
for the new year with equanimlty'
finged with encouragement.
In no conservative quarter. however,
was there any disposition to disre-
gard the manifold uncertainties which
still attach to domestic industrial and
economic conditions and the unsettled
foreign exchange market.
The high prices prevailing for com
modities, attributed mainly to under
production and the many cross cur
rents of international trade. are re-
peatedly emphasized as the chief op-
stacles to even a partial resumption
of pre-war conditions
Readjuxtment Going On.
The LEGAL money market is in process
of readiustment from its recent severe
tension, but few time loans are likely
TO he negotiated until most OF the
January interest and dividend ols-
bursements. approximating s4o".o"o.
coo. find their customary investment
channels.
OF the more important domestic
problems the prospect for the rail.
ways seems to sound the only note OF
disbursement. Aside IRON the
further heavy deficits reported by the
roads the various plans now under
consideration for their return to pri-
waite operations are held to offer little
hone of early solution.
Influences which are expected to
shape the course of the country
t,-;n nc
are already clearly defined. Advlces
gree that, barring unforeseen labor
difficulties, production of steel and
iron will run far beyond previous
records.
These conditions apply almost with
equal force to copper and other basic
metals as we'll as oils, tobaccos,
leather and textile product. in which
maximum prices are expected TO oe
firmly sustained for months to come.
Upward Movement Continues.
The upward movement in the stock
market which preceded tho uSher1ng
in of the new year made further
progress today on substantial ana
varied turnover
In the absence of actual develop
rnents, todavs npswing was attribut-
cd to prospects of p relaxed money
market as Indicated by yesterdays
sharp decline in demand loans and
the extraordinary activity reported
from leading centerS OF lnduStrN.
This was reflected in the confident ab-
sorption of steel and equinmert shares
also CORNERS. motors. motor acceS-
sories shippings and numerous sp"-
ciaIties. Gross gains extended from
to points in most of these issues.
a few scoring even greater advances
Rails Rise mt Finish.
There also was a marked revival of
INQUIRY for oils including the Mexi-
can and Texas groups, but rails were
under restraint until toward the
finish when transcontinenta1s rose
brisk1y under the lead of Southern
Pac'fc Sales amounted to $4,000
shares.
Liberty bonds and victory notes
were heavy to irregular, but else
where. including internationals. a
firm tone prevailed in the bond mar
ket Total sales tpar value) were
$500. 00a Old United States bonds
were unchanged on call during the
week
The bank statement was an index
Of the heavy transfer Of funds which
marked the advent of the new year.
Actual loans and discounts increased
by slightly more than s116 100000
with an increase of about s46.000.000
in reserves. which brings the total
excess Nun to almost s53. 1000.
against deficit in the third week of
December Reserves of members in
the federal reserve bank also ex-
banded by approximately $65. 100000.
increasing the total held by that in
stitution to almost sso0,ooo,o0o.