Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-26
STOCKS LOWER;
TRADING L|STLESS
BY STUART p. WEST.

| IIu1OuvQ IIVIIIOU
BY STUART p. WEST.
] WALL STREET. New York, July
| 2S.-That the Russian Polish crisis
had not been the big factor in last
weeks market which many had
/ thought was clearly demonstrated by
| the course Of the dealings today.
There was no reason to bubble about
the armistice announcement. 1t was
] perfectly definite and final. The soviet
| government proved that it was as
| anxious for peace as was the rest of
| the world. The correspondents in
| London who painted a lurid picture
| Of another great European war were
| made to appear sensationalists of a
very objectionable, not to say mis-
| chievous type
Yet with all this the market raj
| lied only very feebly on Saturday, and
( this morning opened lower. continued
to droop during the first hour or SO.
then settled into complete inactivity.
1t was clearly established that it haul
not been European politics that were
giving the main concern, but the
alton
Bank Statement Factor.
Wall street professed to be very
much discouraged because of the
heavy shrinkage reported by the New
York Clearing House banks and the
ensuing deficit of over s., 900, 900 in the
| reserve. but this pessimism was not
well considered. Nowadays. with the
complex operations between the
regional banks and the member in
situations, violent changes as between
week and week are customary. We
have seen more than once during the
last few months a deficit at one week
INV q a r.
plus at the next. The only safe guide
to the money and credit situation is
the combined statements of the
federal reserve banks. 1t does not
seriously matter il the position at
New York Is weakened so long as it
is correspondingly strengthened some
where else. and the main thing about
the bank statements of Saturday was
not the apparently very poor showing
of the New York institutions, but the
cent-of the twelve regional banks
was the highest reached since the
early part of the year.
Rate Increases.
Wall street heard from what was
described as an important Washing
ton source that the freight rate in
creases may be announced almost any
day; that they have been whipped
into final form and, best Of all from
the standpoint of the investment
community, that the wage advances
recently granted had been fully taken
into consideration in making up the
new tariffs.
Friends of the copper stocks were
heartened by the word which emanat-
ed from the most important group of
copper interests in the street that the
surplus supply of the metal had been
reduced nearly 250,0O0,OO0 pounds
between January 1 and July 1.
Market Opinions.
Most of the market letters today
took more optimistic view of the
European political situation, but
helpful effect this might have upon
the market would be offset by Satur-
days unfavorable bank statement.
The United States Steel report, due
tomorrow afternoon, and the railroad
rate increase decision. which is ex-
pected some time this week, were
pointed to in some of the letters as fac
tors which would probably play i'm
portant parts in the market situation
during the week. One house had this
to say: THE Improvement in the
European situation is slightly encour-
aging, as this factor was largely re-
sponsible for the bear selling of
stocks last week. Money rates prob
ably Will remain high, as the bank
statement was not very satisfactory"
Rumors that ten million gold is on
the water for this country from Eu-
rope may help the situation il it is
true. 1t is generally expected that the
advance in freight rates will be an
nounced the last of the week. This
should help many of the railway
stocks. They seem to have the best
speculative possibilities at the present
time.
Sugar Stocks Prospects.
One of the stock exchange houses
which is bullish on sugar stocks and
takes the view that the talk that
sugar prices in 1921 will be ma
terially lower than at present" as
propaganda to force down the selling
price of the coming crop of American
beet sugar, points out that very little
improvement oan be looked for in the
world sugar situation for some time
to come. The sugar consumption of
the United States has shown an alb
normal increase SO far in 1920" it
says in areview of the sugar situa-
ton. competent authorities estimate
this gain at between Is and 20 per
cent.
1T may slow down in the second half
year. especially if unemployment in
further ties up shipments to distrib-
uting centers-
''Meanwhilet the increase in production
Of European sugar is exceedingly slow.
Germany in 1920 will make by rs per
cent as much sugar as in 1914. Poland
is importing sugar. Austria is i'm
porting. Only Belgium and France
promise large 1921 increases, and even
the 35 to As per cent gain in France
will still leave it a sugar importing
nation. Europe. excluding Russia, has
increased it's sugar production in 1920
by 10 per cent. 1t may do little bet
ter in 1921, but until the German crop
is back to 100000 tons and until Ger
many and Austria and Hungary are
supplying England with 20 to 80 per
cent of her sugar the Rrifish- EIrroneap