The New York herald., 1920-01-11
News and Gossip
Wall Street
SATURATED WITH OIL.

oil stocks acted badly yesterday. Ros-
sibIv tho Immediate reason was a severe
decline in Mexican Petroleum due to ru-
mors that the United States government
had sent another sharp note TO Carranza
demanding punishment of the slayers OF
Americans. But apart from the Mexican
news oils were heavy because Of a grow
ing feeling that the market has been satu-
rated with oil stocks to an extent that
makes them undesirable investments. New
oil promotions have been very large. some
have merit, but the majority are pros
spects" so far as actual earnings are con
cerned Reports that some Wells In thc
Texas field are spoutng salt water has not
helped the market position OF oil shares.
TOBACCO STOCKS STRONG.
Tobacco stocks maintained their
strength TO the end OF the market not
vithstanding the reports of "A revolt III
lr;er,nanv. which caused the general
,n.r,set IN. sell off. Tobacco Products
and United Retail stores closed with net
gains. In connection with the activity in
tobacco stocks the analyst OF the 1919
crop renort shows a smaller production
despite Increased acreage. The 1919 crop
amounted to t.:ss, $500 pounds compared
with 42g011 900 pounds in 1?lS. decrease
Of t96l3oo pounds, or 3.i per cent. In 1917
nured with this. the 1919 crop shows an
increase Of 40 900 pounds, or IL per
cent.
EUROPE BUYING HERE.
While there is much current talk TO the
effect that F,Iropc is on the verge OF bank
ruptcy and that huge American credus
will bc her only salvation. certain faots
have come 10 light which do not bear out
that contention in its cntirct. II was
learned Yesterday. for example that there
| is a great demand for American goods
from foreign interests who are offering
30 nav cash for them in dollars at current
rates Of exchange. 1t is understood that
so eager are these foreign buyers to oo-
tain these goods they are offering pre-
miums over the quoted prices. American
manufacturers. on the other hand. are
experiencing such heavy demands upon
their resources from domestic buyers they
are unable to accept some OF this foreign
business The inference drawn from the
/ facts cited is that Europe Is not so inn
poverished as has been represented. More
over IL is quite apparent that there arc
certain American goods she must have at
any cost.
RAIL STOCKS MARKING TIME.
4 Railroad stocks are marking time pend
ing developments I'm the railroad con-
ference committee In Washington. Thus
far the confcrrees on the raiiroao plhs
have made constructive progress. The
latest point on which agreement has been
reached Is that of the period Of the gov
eminent guarantee Of q standard return
after the return of the roads. The con-
ference has accepted the six months
period fixcd by the IIsch bill, instead OF
limiting the period 60 three months az
provided ia the Cummins bill. SiX months
will be mono too long period Tor guar
anteed standard return. in the opinion of
railroad interests but IL Is much better
than the short period fixed by the Cum
Minis bill. The committeeman in Congress
have been deaf TO the agitation OF sup
porters Of the Plumb plan for nationaliza-
\ ton of the railroads This also Is an
encouraging feature OF the situation.