The Washington herald., 1920-06-13
STOCK SHORTS
RUN TO COVER
"Bsht Nominee at Chica-
60 Causes thrush Of Large
Buying Orders.
OTHER BULL FACTORS
News on Industrials Favor
able to Those Working
For High Prices.
OTHER BULL FACTORS

For High Prices.
Action of the stock market at the
close OF the week indicated that the
speculative and investment public
entertained hopeful and satisfac-
tory Views as to the likelihood Of a
suitable candidate being nominated
At the Republican convention In
Chicago. Some of the leading wire
houses reported the receipt of heavy
buying orders from the Windy City
and this was regarded as Of signif-
lcance because of the large number
or prominent Wall Street interests
who are there attending the con-
vention.
There were other factors, how
ever. which contributed toward the
better feeling which obtained, IN
|cludins the dismissal Of the govern
Iment suit against the American
|Woolen Company, which was fol-
powed by substantial advance in
the stock Of that corporation. An
|other factor of a favorable charac-
ter was that of the extra cash div
|idend of IS share declared by the
International Mercantile Marin.
Company in addition to the regular
semi-anrual 3 per cent dividend on
the preferred stock. bringing the
dividends in arrears on that issue
down to s42 a share. There also
was considerable talk of possible
consultations of independent steel
companies and IL is known that real
basis exists for these reports. It
has been known for several days
past that there has been quiet ac-
formulation Of some of the inde-
pendent steel stocks but IL was not
until Friday that the basis for such
purchase was that of the merging
OF several properties into one large
Independent organization.
Good Buying In steeIs.
United States Steel common was
feature in the late trading and
1t was stated that aside from the
covering of shorts there had been
what was regarded as an excellent
character of absorption. Lacka-
wanna Steel, Crucible Steel, Repuo-
lie. Nanadium and Replogle all were
active and recorded substantial
gains as compared with final quo
tations of the previous session.
Oils Strong.
Oil issues were unusually active
and strong under the leadership Of
Mexican Petroleum and the Pam
American issues which moved I'D
or points with an active demand
Tor these stocks as we'll as some of
the lower priced issues. The belief
obtaining in financial circles il
that with the right kind of nom,-
nation in Chicago, the stock mar
ket Will enjoy a considerable fur
thcr advance on the present move
ment in the standard issues, IncIuo-
Ing the better class of steel and oil
issues as well as the equipment
stocks. Baldwin Locomotive, Beth
lehem Steel, American Car & Foun-
dry End American Locomotive ad-
vanced from 2 to Q points in the
late trading.
Rails Unsettled.
Railroad stocks were unsettled
this being ascribed as being almost
entirely due to the action of the
directors of the Chicago & North
western Railway Company earlier
In the week in reducing its pre-
TERED and common stock dividends.
Throughout the entire session on
Friday the rails were practically
neglected with unimportant price
changes being recorded but yester-
day Northern Pacific was sold
heavily. the selling coming from
abroad Reading was spoken of as
likely TO enjoy improvement mar
Setwise at the first signs of an ad-
vance in the rail list as a whole.
The decision Of the court refusing
stay of proceedings Indicating
hat the company must liquidate its
holdings was interpreted bullishly
n Wall Street. but it may be some
little time before a concrete plan
S worked out calling for such a
development.
There was very little doing in
The copper group. while the steam
ship shares also were neglected. the
attention of the Street being more
generally concentrated on the steel
md oil stocks. There were, how
;ver, moderate gains recorded in the
| ,oppers. including Utah, Chile, In
Ipiration. Kennecott, etc. The leath-
Pr stocks also rose moderately in
sympathy with the rest of the mar
get, but the changes in these issues
we're not of sufficient Importance to
iirect much attention to them.
Stocks Advance on High Money.
The contention has been made for
sometime past in Wall Street thar
with stiff money il would be inn
possible for an upward movement
If any proportions to take place in
me stock market, but during the
present week the ruling rate for
.all funds has ranged as high as 12
ser cent on Thursday with the aver
lge rate for the week above per
cent, and yet a substantial advance
las taken place practically through
,ut the entire list. There was a
better feeling near the close of the
week as to the money market out
ook, the contention being made by
some of the leading bankers that
he higher rates for funds have re-
suited from an effort on the part of
he banks to provide for the June Is
disbursements which must be made
connection with income tax in
Jtalments. 1t was felt by thes.
same bankers that the coming week
will result in lower money rates
md that there will be a moderately
,reer movement of funds over a pc
'iod of the next few weeks until the
erop movement demands have to be
net. Even then bankers say they
EEL there will be a sufficient supply
o meet ordinary stock exchange re-
luirements.