Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-30
TAKE COGN|zANCE
OF SLACK IN TRADE
Bear Traders Are Working in
Stocks Where 0verporduc-
ton Is Reported.
BY STUART p. WEST.

4
BY STUART p. WEST.
| NEW YORK. July 30.-Today's market
may have been disappointment to part
OF the speculative following, the part
which had looked for yesterdays recov-
| cry to go further. rejecting the better
feeling over the credit outlook. But its
action was quite in line with the pre-
dominant view that while credit condi-
tons have unquestionably improved
| there is no room for any fresh expansion
in Wall street loans and therefore the
pest that can be hoped for is for the
better class of stocks to settle down
some where near the present price level
SIhere had been enough short covering
Yesterday to render the general market
position less strong than it had been a
couple OF days ago. Bear raiding was
resumed and met with quite bit of
success in numerous industrials stocks
The suggestion carried all through
the trading was that there was some
thlng more than the credit pinch at
work in the market
The stocks that weakened under the
pressure of short selling were those of
companies which are known to have
suffered reduction in earnings or else
those which are believed to be facing a
business recession
In this group were the leather
STOCKS. the wool shares. the motors
the rubbers and one or two of the
SteelS.
Facing Conditions.
The weakening of these particular
stocks where the rest of the list
held com paratively firm showed that
the market is inclined to take cogni-
zance of the differing conditions in
individual industries and to discrmi :
nate against the stocks of those which
are believed to be in less favorable
position.
In a word. the market is taking ac-
count of something else than the
credit strain and that is the reaction
which has already set in or which is
expected in various industrial lines.
Steel common. Baldwin Locomotive
the Mexican oils and few others
stood up well against the weakness in
Trading Was Slow.
Trading was not at all active on the
decline. indicating that it was lack
Hof buying power rather than the
presence of much real selling which
shares did not justify the food of OPP
timistic comment regarding what
they were likely to do on the rate
decision. Some of the predictions
made during the last few days as tc
the size of the increases which the
Interstate Commerce Commission will
allow have seemed altogether ex-
travagant.
Drive on L. $. Rubber.
United States Rubber broke through
its previous low point of the year
1t looked like bear drive at the
start. but the main thing was that
there should have been so little re-
sistance opposed to the activities OF
operators on the short side.
The weakness in rubber is the more
remarkable because of the favorable
report for the first six months OF
the year, which was issued some
time ago. The substantial increase in
earnings certainly indicated no heavy
loss on account of the rectif1cation OF
difference in this respect from the
melancholy experience of the leather
concerns.
Those who have been selling United
States Rubber for the last week or
more have had lot to say about
the necessity of the company issuing
$50. 100000 notes. and this has been
the main bear argument put forth
ever since.
on the other hand. by raising this
new money the rubber company has
greatly strengthened its working cap
ital and correspondingly made itself
less dependent upon the vicissitudes
of the autumn credit market.
The Bond Market.
There was still much irregularity
in the movement of bond prices today
with about an even distribution OF
gains and losses. Liberty bonds hac
to give up most of their little rise
! in the Belgium tbs continued. carry
| ing them down to less than point
! of their issue price.
1t is not expected that this down
ward movement will go further thar
| the 97H level if it goes as far, because
at this level there will be no more
lprofits to take.
Swiss government IS were not at
fected by the drop in Belgians: they
| continued to hold around 1O3- In the
equipment group the Delaware ant
| Hudson Is were slightly better, get
which at the start of the week were
under 81. sold today at 93A.
This recovery may have been {
! reflection of the efforts to strengthen
the French credit position and to NEE
Frances share of the Anglo-Frenci
loan.
United States Rubber notes We're
| not affected by the weakness in tbs
! stock. They were quoted 90 bid
| offered at the issue price. ssh. Among
| the fractions. the lnterbOrough Raple
| Transit SIS rallied slightly from yes
| terday's extreme low. and there was
| a revival of interest at higher prices
| in the United Railway of San Fran
| cisco As, suggesting that some de-
| velopments were impending in these
| securities.
! There was a report that American
! bankers were to underwrite - loaI
! guaranteed by the allies and secured
| by the monthly German coal deliv
| eries, but local bankers professed tt
| know nothing about such an under
! taking and expressed themselves al
| skeptical about the entire story.
| The Curb Market.
| The curb market today continued
: generally heavy and dealings wer
! small, being confined practically t
| the professional element. Pric
| changes for the most part were con
| fined to small amounts, but the ten
dency was downward during tn
greater part of the session.
International Petroleum, Maracaibc
National Oil of New Jersey, White
Skelly, Leetone Petroleum and severa
others were quiet and about steady
The traders appeared to have neglect
ed the oil department and gave NOR
| attention to the miscellaneous list
! General Asphalt led the miscella
! ct hajpp Sliphf1y tiDhor a