Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-03
BEARS IN CONTROL
Of STOCK MARKET
Few Exceptions in List.
Money Seems to Be Domi-
mating Factor.

IldlIIlY TdClUI.
NEW YORK. May s.-There seems
to be no balm of mercy for the hold
ers of securities listed on the New
York Stock Exchange Many Iuar-
cined stocks have been throw over
board. more are going over tie side
each day as declines follow after ::
feeble attempt of the bulls !" max e
the shorts cover.
Many investors have been com PEELED
to part with some of their holdings
in order to give the needed protac-
ton to those they still hold.
The atmosphere Of the street. after
the drastic clean-ups for 10. 20 and
30 points decline. ard in some cases
for much more. seems to be just -
surcharged with gloom as il va I,
week ago
Old-time operators. watching the
ticker day after day. decide that the
reactionary trend is grinding on tha
bottom, and that this is the tim. 10
buy stocks. because they cannot @
much below their present levels and
then in a dav or two they add the
weight of their recently acquired
holdings to the offerings and further
declines are in order.
Strong for n Few Minutes.
For few minutes this morning
the market was strong. Some shorts
anxious regarding the. big brofi:; in
sight. covered and fractional advances
were in order. but the strength peter
ed out in short order and gains were
turned to losses
II is admitted that earnings Of cor
porations ar" being maintained at a
great pace; that the demand for goods
mas by no ni"TnS been met while the
May day devel"nm-uts did not appeal
TO the averaE" reader as a matter of
serious impor..
Financial +. ports. however, note the
increase of $3S.G0o.o00 in loans Of the
Federal Reserve Bank of New York
and a decrease in the ratio of re-
serves TO net deposits. The actual
hank statement showed $4,000 600
loss in excess reserves and number
OF federal reserve banks are using the
sliding scale against government Sc
curities.
Authorities continue to urge con-
traction of credit. Attention is Gale
10 the fact that the banks of the
leading cities will soon have to pre-
pare for July disbursements, which
VIII probably amount to $450. 900.
Close observers predict that the
present irregular trend is likely to
continue. with rallies largely affected
by increased dividends stock divi-
bends and special news affecting par
t.cular stocks.
Talk of steel Merger.
There was insistent talk of steel
merger tlIS morning. carried over from
last week. Bethlehem I.ackawanna
Midvale and other independent steel
companies are mentioned as likely
TO be in the merge and the theory
is the fact that the big steel corpora
ton has been the better able to meet
strikes and may have the advantage
in the matter of buying. but the sin
gle management of the big corpora
ton is its big card and has enabled it
tc accomplish much.
soldiers bonus.
The street is at sea regarding the
soldiers bonus plans, hoping that
there will be no retroactive features
adopted. but dreading it as certain to
cause more liquidation IL the retro
active feature is introduced.
Money opened at per cent. All
advice is to go slow and be very eau
tious until such time as money rates
become easier-and there are no in
dications that the time is near at
hand. The controllers call for
statement will probably be made to-
morrow. and this may release some
cash.
General Motors lost l. points when
II dropped from 293. Saturdays clos
ing. to $50. and rallied to 2S3 u
Stude baker was very firm early on
good reports of earnings. but turned
weak and dropped from 1101a to 10!.
Chalmers was point lower and other
motors soft.
Action in the stcels was generally
Steel common the leader. 1t sold to
95ss early. u point net advance. and
then II turned and dropped to 9sb.
new low on this movement Crucible
Steel fell back from 1f5 to 1876 and
made small recovery: Vanadium.
much better. early lost all advance
and 3. additional. Republic was firm
early. but lost most of its advance.
Stromberg carbureter. nearly points
off. Bethlehem held part of its earlier
gain.
Miscellaneous stocks.
Baldwin Locomotive was firm early.
selling to 114S 212-point advance.
then turning and falling to 1uA:
american Locomotive lost -: Car
Foundry was firmer; Press Steel Car
1. off. and Central Leather, . points
lower.
Columbia Graphophone apparently
vas deserted by its sponsors and left
20 seek it's own level 1t found ii for
the time being at BAR ex-rights. 2
points few days ago, 1la points to-
day.
Railroads Were slow.
There was none of the weakness
noticed in specialties in the rail
coup. but they were decidedly slow
from the start. Slight advances were
scored in New York Central. Chesa-
r-ake and Ohio and Reading after
al early easing in the last mentioned.
Closing Materially better.
The low prices and the large profits
In sight started the bears to covering
tteir contracts IN the final hour and
iccOveries of considerable importance
we're scored in everything on the list.
r'any small declines in the earlier part
o the day being turned to modest net
gains.
l. was simply spasm Of profit
taking that caused the improved feel
ing. Steel common WAS back to % and
some Of the oil shares made new highs
for the session crucible Steel and
General Motors, the Weddings of the