The evening world., 1920-08-19
/ FINANCIAL NEWS AND PRICES
WALL STREET

while dealings IN tho stock market
to-day continued TO be highly profess
sional, an improved tone was exhib-
tied, and at one time leading favor
ties showed advances ranging to as
much as three points.
a greater feeling of optimism re-
gardtng the immediate outlook was
Icngendored by reports that the Red
armies had been driven back fifty
miles from Warsaw, and that Britain
ana France had cleared up all differ
encoa regarding Poland.
But the rally in the stock market
was probably due in greater measure
to the fact that II has been in very
much Of an oversold position. The
short interest has become unusually
large. Technically, its position Is ex-
trcmely sound and it evidently does
not require a very important volume
Of buying to llft prices.
This was demonstrated to-day in
several Instances. When Baldwin
Locomotive fell to 100 - yesterday,
few II any stop loss orders were un-
covered on the break. This encour-
aged professional buying of the issue
to-day and 1t quickly ran up to
1O4 w. on a light volume Of trans
actions
The favorable character OF the re-
port issued by the Chandler Motor
Company resulted in u three point
gain in that issue and the easy man
ner In which II rose stimulated buy
ing Of Studcbnkcr, and other rubber
and motor shares.
SteS and oil shares quickly re-
sponded to buying by floor traders
and professionals, and gains Of
point and more were by no means
uncommon.
Although sugar issues were among
the weakest issues yesterday they
failed to display much recuperative
power to-day. Brokers profess TO be
puzzled by this, but the cause OF
their weakness Is not difficult to as
certain.
It Is TO be found in the trend OF
the raw sugar market. Raw sugar
has now dropped approximately nine
cents per pound from It's recent hlSh
mark. Optlmists on sugar shares
point out that the sugar crop has
now been marketed and dropping
sugar prices will have no effect on
earnings. This Is true in some cases
and not in others. And they lose
sight Of the fact that 1t is the func
ton OF the market to discount hap
penings far in advance of their ac-
tual occurrence. Big Cuban pro
duccrs used to be satisfied with an
average price OF less than five cents
per pound for their output.
Should sugar prices drop anywhere
near this level it will be practically
impossible for certain OF the biggest
/ companies to maintain dividends on
their present capitalization, And
there are many shrewd judges who
profess to believe that raw sugar
prices are destined for a materially
| lower level.
Strangely enough the apparent i'm
pr6vement in foreign conditions failed
to be reflected in Foreign exchange
rates. Demand sterling dropped &c
$SG21-4, loss Of II cent to the
pound, and German marks dropped tC
below 2 cents, the lowest figure since
the early part of May.
can money renewed at Z per cent.
the same as on Wednesday, but fund
are scarce at this figure. A tru
gauge Of the money market Will b.
| found in the cost of money TO tn,
| French Government. which Is cndcav
oring TO arrange a loan of between
800 .OOO. 600 and $l25,000,O00 here. 1t 1
best banking opinion that the Frenc'
Government viii have to pay not les
than per cent. for this now money.
Although cotton dropped approx
matcly $500 per bale yesterday,
added $500 per bale to It's loss to-day
Trading was extremely active, par
Nculnrly In carlydcalinGs. Wheat wa
slightly easier ana corn lost abou
three cents per bushel,