The Washington herald., 1920-07-14
. MILD RALLY
ATTHE CLOSE
Squirt Comes After Most Of
Important Issues Reach
Low Prices.
PROFESSIONAL TRADING
British Report Causes Opti-
mism, Which Is Promptly
Checked By Morgan.
PROFESSIONAL TRADING

New York, July 13.-Stocks
closed in the midst of a mild rally
today after most of the important
issues had made new low prices for
the movement Mexican Petroleum
and Invincible Oil were notable ex-
ceptions. both showing strength
throughout the session. Reading
turned weak in the afternoon caus-
ing traders to sell all the railroad
shares, but a few of the low priced
issues remained strong. Trading
was almost entirely professional.
1t is evident that there has been
excellent selling of long stocks by
strong interests en- the recent rally.
High money rates are expected by
most OF the Street. There are some
optimists who believe that after
certain government plans are work
ed out the call rate may fall. 1t is
officially announced that the United
States viii receive some s15c,OOO.-
900 in taxes for July. The financing
CT this sum is complicatinG a mar
Ret situation otherwise delicate.
Congestion of freight Is one of the
chief reasons for the scarcity of
banking credit and that in turn
waits on action by the Interstate
Commerce Commission. Wall Street
is beginning TO worry about the
Labor Board award which may be
announced any day now. and which
may take up all the increase to be
allowed by the Interstate Commerce
Commission, thus leaving the roads
very little better off. But even
should the wage award take all the
increase that will be some help be-
cause II may enable the roads to get
back to normal working conditions
so far as labor is concerned.
In regard to the congestion Of
steel products at the mills it can be
said on high authority that there is
no present danger of any mill shut
ting down.
British Report starts Rally.
Early today quite a rally waS
started in the market by a rv-.Srt
that the British government had
agreed to take over the Fren~r re-
sponsibility for the Anglo French
loan in return for an agreement on
the part of France to withdraw OBJ
jectiorf 10 tr-idFff=s- with Soviet Rus
sia. The report stated thai this
would release s3OO.00O.O00 of gold
for British account and that $780,
900. Of this would be cent to New
York. This report was circulated
1t was published in any newspaper
nr tfnLr u-hnr, ff
]. +. Morgan & Co. promptly denied
il This prompt denial. coupled with
the earlier circulation. led the Street
to believe that the whole yarn was
invented for stock -jobing purposes.
and there was free selling Of stocks
Immediately. On this decline the low
prices Of the day were made and
in no section escaped. Even Read
ing and Mexican Petroleum went
down. When L. S. Steel broke
through % there was some buying
of stocks and the final rally was uu-
der leadership of Mexican Petrol
cum. The Street had report that
Mexican Petroleum had brought in
its new well. but this is not correct.
The well has been cemented and will
proba bly, be drilled in within ten
days or two weeks. The gas pres
sure is such as To justify eXpeCta-
tions Of q gusher.
Capture Of Minsk by the BOlshe-
visits was considered in Wall Street
to be a very serious matter. Money
is the chief obstacle to a rising mar
ket. but the foreign situation is
being watched carefully by the
banking leaders. There are signs
of 4 new dispute between Japan and
California that may Cnmplicate
trade relations in the Far East.