Evening star., 1920-06-02
STOCKS WERE SLOW
At SHADED PRICES
Motor Group Under Pressure
on Financing Plans of
General Company.
BY ART r. WEST.

NEW YORK. June e.-Tsc course o.
today's trading on the sto@k exchanc.
fitted in entirely with the view held
b. good judges that there will be ,er,
lltti" doing in tho market at lcss,
uutil after the republican, NOMINATION
Tne immediate point or interest wa.
whether yesterdays decline had an.
serious significance following as !,
did the raising of federal ;icserve dis
counts or whether il was simply ono
of the little surface fiucI LatioDs IN .
very narrow professional >peculatjor
Answer TO this question: was given
plainly enough. Operations for tn,
decline continued against certain in
dividual stocks in the eArly part OF
the day. but without occasioninr an,
renewal of the general downward
movement. AS the tradetS saw thaf
they were bringing out rS real stool
to speak of they set about cover
ing their short contracts, and price.
hardened in the afternooR
II was very tedious Gay Trad
ing most OF the time was intensely
dull and there was veryt little Incl
dent as there usually is ieN.n in an
inactive market in the Operations i'm
special issues.
While the new S65 900 ,0tlO stock of
fering of the General Motors Corpo-
ration had been expected and whil.
il had been known that Sthe under
writing price for the American part
of the Notation was to be $50 a share
the actual announcement occasioned
some selling of General Mbtors which
finally developed into a raid upon the
motor group in general.
Tire shares went down with the mo-
tors. None of these stocks is in any
thing like the same position as tn"
Goodyear shares. which declared big
stock dividend last week.
Consequently their run. up on this
nf the Gnodyear acCiop M.
| logical
Endicott johnson and American
Hide and Leather preferred reiect-
ing their conditions preseht and pros
pective were under some pressure but
on the other hand American Wool
showed that it had reached selling
price which has pretty well discount
ed the showdown in its business.
Tobacco showed aaertone.
Tobacco stocks. under the lead of
United Retail Stores, were again in
demand at rising prices whenever the
| general market gave them any en-
| couragement.
directors regarding a stock dividend
had not been made known up to the
| close of business. Sentiment continued
| optimistic regarding tn r prospects
yesterday and again today they seem
to have run into good deal of profit
| taking.
! The steels and equipments displayed
a rather better tone.
| What happened today bore out the
analysis that yesterdays market
would have gone down anyway for
| technical reasons. and that the rails
ing of federal discount rates was
merely an excuse.
| Even the speculative crowd who had
/ Jumped at the conclusion that this
was a very bearish development were
ready to acknowledge that the fixing
of the new scale of federal reserve
discounts was merely bringing these
into line with existing Quotations in
the general money market and were
no indication at all OF any fresh
| strain.
Not Due to Aetion.
The furry in call mc,ney al last
/; nights close was, of couSse. not due
at all to the federal reserve action
but was the result of 4he drawing
down of government funds on deposi,
with the New York banks The sup
/; ply was sufficiently cuftaiIed Tn
| morning to warrant an vs. per cent
quotation on call loan renewals a.
against yesterdays 6 peF cent But
new loans after starting IN at wer.
offered at 6 soon after.