Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-23
GOSSIP OF
THE STREET

while sentiment was greatly cheered
py the substantial rebound from the
depression In the earlier part of last
week, 1t was the consensus of opinion
among the more important trading in
terests that the real test of the inherent
position OF the market would come this
week. 1t was pointed out that the re-
covery was largely made at the ex-
pense OF the short interests. The con-
tinuation Of the rallies therefore will
dtpend in a measure to the extent of the
still outstanding bear accounts, and the
otherwise buying power of the market.
Confidence of maintaining the for
ward swing was greatly lessened after
the publication of the bank statement
disclosing the reduction of the excess
reserve almost to an extinguishing point
again. The inability of the larger in
stitutions to hold up the reserves, ac-
cordingly, gives little promise Of any
immediate change in money market
conditions. Money rates. 1t is true,
are no higher, nor as high. rs they
were a fortnight ago, but It Is ms diff-
cult, IL not more difficult. to obtain the
necessary financial accommodations for
market operations.
It is in September and October, as
a matter Of fact. that the real demand
for money develops. Cotton and ce-
reals require large sums in their move
ment to market, and, in view Of heavy
business loans already outstanding and
which are being slowly liquidated. 1t
seems inevitable that reserves will sur
fer considerable deterioration in the
fall.
That. in turn. apparently forshadows
still further tightening Of the purse
strings by the banks, in so far as the
stock market operations are concerned.
Strength Of d. and o. Stock
Tho unusual strength and activity OF
Baltimore and Ohio stock the last two
or three DAYS has come in for consider
able attention. The buying. according
to the board room reports. was OF the
highest type and was encouraged by
widespread belief in market circles that
IL will be one of the first rails to get
back on n dividend basis. Street Cos,
sin, however, has Il that influential
speculative combinations have been
formed in many Of the low priced rail.
road stocks. It was also said that the
movement in Baltimore and Ohio was
engineered by a pool which transferred
its activities from Southern Railway.
The same story was told about Read
ing that has been heard ever since the
S,,nremc Court handed down the dcci-
sion several months ago that banking
interests are accommodating the stock
With the intention Of retaining it until
the assets of the company are dis
tributed.
As n matter Of fact, in view Of the
extensive propaganda which has been
carried on to bolster up interest in the
rails, It is surprising that more ma :
terial results have not been accom-
nl;shed, Although many false starts
have been made in the bull campaign
ing of the group. It Is reasonably Ger
tnin that It will eventually come IN
for n big share of attention and prop
ably be made the real market leader
Establishing Losses
II seems rather like the irony OF fat'
| that MANY of the larger operators wh'
refused to cash in the handsome accru
| inc nrofits on the crest Of the buiilsr
wave last year in order to escape income
tar payments, are now compelled u
sell stocks for establishing losses TO
their income tax schedules.
The senior member of prominen
commission house, with a large clientele
in this city, New York and Washing
ton, advance the theory that one rea
son for dumping big blocks of stocks
on the market in the recent depression
was that both wealthy investors ant
| larger traders, who overstayed thei
mark. were using the depression t
stock. he said, were Immediately re
purchased, but in some cases switche
we're made from one stock to another
| or from ono Qroup TO another,