New-York tribune., 1920-10-16
Stocks Rise Again
As Anglo French
Loan Becomes Due
Realizing Sales Cause Reac-
iion Toward Close, When
Call Money Rates Drop
to s Per Cent

In its perverse. contradictory move
ments yesterday the stock market re-
vcaled several fundamental facts about
the machinery of finance. Speculative
securities continued to leap forward In
tho morning in the face of high rates
for money, and in the afternoon. when
rates declined, the fluctuations, meas
uring the market worth of stocks, tend
ed definitely lower The rise was in
anticipation of relaxation in the
credit mart, but when the expected
oosening was realized the effect had
been discounted and operators sold Sc
curities to establish their profits.
Another important exhibit was the
facility with which the bankers paid off
the largest loan American investors
ever made to governments abroad. AL
tfough only slightly more than 40 per
cent of the 5OO,000,O00 of Anglo
French bonds remained outst,E1'ng be-
fore 10 o'clock yesterday--the date of
maturity--even the $200,O00,O0O or
more awaiting redemption set a new
high record. The coordination of
banking resources in the Reserve sys-
tenn made it possible to pass through
the day without any sensational signs
Of stringency.
The renewal rate for call loans was 9
OF climbing, as on the previous day,
the rental charge for money at the loan
oesk on the floor of the exchange re-
ceded as the day advanced-frst to 8
Yer cent, then to 7 and at the last half
Eour to per cent. The first easing,
which game at l o'clock, stimulated
speculative buying, but later in the ses-
sion reductions were accompanied by
realizing sales. The appearance of 6
per cent money was partly due to the
iact that, IN its operations, which in
vowed withdrawing funds from the
local banks, paying off maturing certfi-
Gates of Indebtedness and disbursing
interest on the fourth Az, the United
states Treasury paid out an excess of
S22 100000 over what it drew in, set
ting free new funds here, which will be
taken from other districts. Besides,
the Anglo-French payment involves
huge float, which, until checks drawn
against the maturity are cleared, tenn
porarlly left the banks with a surplus
of funds available for Stock Exchange
leans.
In spite of reaction from the high
levels attained earlier in the day the
general list showed gains of from one
to two points for the session. Reading
hrst preferred and general mortgage
As We're conspicuously strong, and the
high grade railroad stocks generally
moved upward. According to The Tri.-
bune averages, rail stocks Yesterday
equGlled the peak for the war and
railroad bonds attained new high
mark for 1920. Despite the prevailing
strength at the railroad posts some
rall stocks were off for the day, partic-
ularly those of roads of poorer credit,
and Texas Pacific stock was again con-
splcuoNsly weak. Among the indus
TRIALS steadiness was general, with ex-
ceptions among special stocks, such as
American Sugar, American Wooden and
Marine common. The apprehension
which kept down the volume of trans
actions at the exchange all week
diminished yesterday when the actual
shifting Of funds in the money market
Although the walkout of the british
coa miners to-day affected yesterdays
market little, if any, it was probably
the cause of break in rates on
sterling exchange and quotations on
British bonds, and no doubt contrib
uted to the weakness in the cotton
market, which carried quotations to
new low levels. The news that Presi-
dent Wilson, following the suggestion
of Governor Allen, had asked the f ID
eral Trade Commission and the Depart
ment of Agriculture to investigate the
decline in wheat prices caused a st1k-
ing rally in quotations for this cereal.
Quotations were up Is cents from the
low prices of the morning, and net
gains for the day varied between 01h
and 10$4 cents.