Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-23
STOCK PRICES WEAK
ON FOREIGN SELLING
BY STUART p. WEST.

BY STUART p. WEST.
WALL STREET. New York. July %
The considerations Immediately
confronting operators on the stock
exchange this morning are very con-
f1icting. On the one hand the decision
of all but one of the big railway
unions to accept the award of the
labor wage board was cause OF
much satisfaction. 1t virtually dis
posed of all fear of a great railway
strike, although the fact that some OF
the unions are to have referendum
means that the matter is not alto
gether disposed of. The interview
with Judge Gary. in which he dwelt
upon the improved labor efficiency in
the steel mills and expressed himself
look than at any time in the last six
years, naturally made a favorable i'm
preston.
At the same time attention was
once drawn to the wonderful posi-
,ioh IN the foreign trade by the pub
lication of the statistics for the fisca
year. There was the record breaking
export total of SSH. 900. 900, although
the June shipments were $4,000. 900
less IMAM May and nearly $500, OOO, 900
uhoer June year ago. There was
the excess of $2.S72,o0O exports over
% "ihch was a measure, OF
course, OF the increase in our foreign
credits during the twelve month
PERIOD, despite the abnormal condi-
lions in the exchanges.
Foreign Factors Depreasinr.
On the other hand, the morning dis
patcnes from London and Paris regard
ing the possibilities of the Russian Pol
ish embroglio were decidedly disturb
ing. With the course of the day word
I,,l
armistice and had admitted socialist
representatives to it's cabinet pre-
sumably in order to placate the so
Vlet government. This made the sit
uation appear somewhat better
sun the London market. which had
peen very weak yesterday, was I'M
settled again today and one of the
nrSt episodes to attract attention was
the heavy selling of Royal Dutch and
or Shell Transport, two stocks which
most fairly reflect day by day con-
ditionS in London.
What really checked and sustained
upward tendency quite as much as the
european political uncertainties, how
ever, was the continued uncovering
or weak spots in the share list. There
was pressure again to sell the sugars
although in the raw sugar market it
self the downward movement went no
further. The leather stocks broke
badly to new lows in anticipation OF
the publication next week of their
reports for the fiscal year, which will
show the full effect of the severe de
cline in the price of hides upon their
inventory accounts and earnings. En-
dlcott johnson likewise made new
low Tor the year. rejecting the un-
favorable position in the boot and
shoe trade.
Reaction Is Discounted.
All this was a reminder that while
the general market has undoubtedly
discounted very largely the industrial
reaction now in progress, stocks of
individual companies which have been
hardest hit by the changes of the past
year still have to make further read
justment
The net result of this mixture of in
nuences was a very irregular and
uncertain price movement. That the
European political situation was not
being taken as seriously here as it is
abroad was indicated by the fact that
despite the somewhat alarming news
dispatches of the morning and the
weakness in London Specialties prices
generally went higher at the start
1t was not until the weakness began
to crop out in the various specialties
that the rise in the general list was
checked.
Leather Stocks.
While the reports of Central Leath-
er and American Hide and Leather to
be made public next week, are not
expected to be pleasing to the stock
holders. it was pointed out today that
the underlying conditions in the leath-
er industry in this country are sound.
Leather was one of the first commod-
tiles to break in price. 1t was in De-
cember of last year that the leather
trade began to slump, and it was not
until March and April that other
commodities began to break. Ger
many, with her 200 factories, was the
largest exporter of shoes and leather
goods before the war, but she will be
eliminated for long time as a world
producer. The United States has
taken Germany's place as the largest
exporter. England has never been
an exporter of leather, but was the
largest customer of the United States
and Germany. With Germany out of
the field. England must secure the
bulk of her leather imports from the
United States.
Mining shares were about as active
as usual, and price changes slightly
irregular. Bonds were quiet and about
unchanged.
Bond Market.
There was very little change in the
bond list today. Liberty bonds were
almost stationary around yesterdays
final prices. The Belgium tx S were a
trifle firmer just above par. Swiss gov
eminent IS held just above 1913. In
the other recently floated securities
prices were little changed. 1t was,
however, not benefiting the subscriber
to the United States Rubber notes and
the pan-AmericanS to have received
his allotment from the syndicate. He
could have done just as we'll in the
open market-in fact, little better
The Pan Americans were offered to-
day at 94% and the rubber notes were
easily obtainable at 9Sh, as against
SSH, the price at which they were
brought out. The Armour Is contin-
ued in demand at 95%. 1t is expected
attempt loan in this country will be
Denmark. Negotiations are under
way for a Danish issue of somewhere
between s25,000,0 900 and $35, 900, 900,
which will be put out on terms SIM
liar to those of the Swiss loan. 1t Us
probable, however. that Denmark will
have to concede more than Switzer-
land, judging by the relative selling
prices of present securities.
slump in Sugars.
The prices of both raw and refined
sugars can undergo a much greater
decline without causing the produc-
ing and refining companies any alarm.
1t should be borne in mind that both
producers and refiners made money
when sugar sold at retail at 10 and
Ii cents a pound, as it did during and
after the war, while the Sugar Equal
ization Board controlled the price and
A decline in sugar prices
affects producers more than it does
refiners, because the latter base their
w n 20