The Washington herald., 1920-06-06
STOCKS MAY
BE 0VERSOLD
Speculative Ell e m e n t
Creates Renewed Inter
est at Weeks Close.
EASY MONEY RATES
Large Amounts Unloaned
At Sessions End on
Several Days.
EASY MONEY RATES

There was n tendency on the part
Of the Wall Street speculative ele-
MEN, to create renewed interest In
the stock market near the close of
inc week. il being stated that a
weli-kncwn plIEger had re-entercd
b the market on the bull side. rather
extensively in the equipment issues.
including American Car & Foundry,
Baldwin Loco motive and one or two
other issues included in this GROUP.
1t is well known that this operator
has made a great ceal OF money in
these stceks In the rast. both on the
bull aid bear side of tho market
The equipment issues were all
strong on Friday. many CT them
moving UP to levels considera bly,
higher than those obtaining earlier
iU the week when some unsettle-
ment obtained ss a result of the ad-
vance in discount rates by several
Federal Reserve Barks and the
Washington announcement that the
soldier bonus bill lad been passed
by the House by an overwhelming
vote. 1t developed later in the week
that the Senate vas not likely to
take action on the bonus bill at this
session and a steadier tone devel-
opsd throughout the list as result.
Money rates also became easier
and II was said that large amounts
remained unloaned at the close of
business en- several days of the
week while some loars were said to
have been put out at rates slightly
below the quoted level on the floor
of the New York Stock Exchange.
Ths opinion OF prominent bankers
was that fairly easy money will OBJ
tain fo- some time tC come, par
ticularly as there has heen a dras-
tic cUrtailment in commercial activ-
tiles generally throughout the coun-
try. This has relieved the demands
for credit to an apr eciable extent
and as expectations are that further
narrowing down of commercial pur-
suits will take place in the future.
some went so far as to express the
opinion that money might he drug
On the market before the crop-mov-
ing period begins. Ii was also be-
lieved that there would be no ap-
preciable squirt in money rates over
the June Is irccme pa;ment to the
government, although some enter
tained the belief that slightly higher
rates might Chtain around the latter
part of the mcnth when the banks
would be preparing for the July I
,interest and divide nd disbursements.
The manner ir which United
States Steel common moved up on
Friday to 81 which in reality was
the equivalent of ssA was inter-
preted as of the greatest signiti-
cance. as this is one of the issues
which is looked upon as selling at
prices much lower than The intrin-
sic merits back CT the issue war
rant. United States Steel commC n
Il is known to possess a book vaIre
many points above present market
quota tiCns anC those who have
studied the situation carefully main .
tain that eventually the stock will
sell much higher. other OF the steel
issues also were in greater favor.
including Republic, I.ackawanna.
etc, ard il was said that there had
been fairly good buying of them on
the recent declines.
Motors.
The entrance OF ]. P. Morgan &
the Bsnkers Trust Company in the
financing affairs of the General
Motors Cooperation during the week
tended to strengthen confidence In
the motor group as a whole. al
na1
reflection of such a condition in
quotations fo- this group of issues.
The argument was advanced that
when a strong group of bankers Of
this character saw fit to enter upon
a situation Nhch had been the sub
ject Of widespread c, niment. it was
because OF a belief that the crn6i
tions were such as to warrant con-
fidence in the outlook. According to
a member of the Morgan firm. much
conddcnCe is entertained in the
branch OF the motor trade confired
to trucks and tractors and this Is
one Of the reasons why this impor-
tant tsnkiLE concern became asso-
ciated with the uIderts king. Earn
ings of motor companies this year
are expected to be larger than ever
before and there is every reason to
believe, 1t Is argued. that current
dividend rates Will be maintained
ey the producing companies.
Oils.
Oil issues displayed considerable
strength near the close OF the week.
Mexican Petroleum, Pan American
and Royal Dutch moving up to
Isyeis considerably higher than
those obtaining a week ago. Sin
clair Consolidated and IRA nscon-
tinental Oil as " ell a. Middle States
were termed as the weak sisters
in the oil group ard there apparent
w was Considerable selling. of
them during the week. Railroad
shares were ir favor. particularly
!. the low priced issues such as Rock
zIsland, Missouri Pacific, New Ha O..
ven, etc. while some interest was
shown in Union Pacific, Southern
Pacific and Reading. Bullish talk
was heard regarding st. Paul prsS