The Washington herald., 1920-10-23
STOCKSRETAN
STRONG TONE.
High Call Money and UpcAaased
Strike News Fad to Depress
Ardent Supporters.
TECHNICAL POSITION STRONG
Quickness Of New Bond Absorp-
tons Denotes Confidence in
Stability of Prices
TECHNICAL POSITION STRONG

New York. Oct 22-Stocks held
relatively firm today in the face
of an advance in the call money rate
to 10 per cent, and no change for
the better in the labor situation in
England. Price changes were ir-
regular. but the close was steady.
with many issues showing gains
ranging from a fraction to a fuli
point The resistance shown by the
general market to Unfsvorable news
was considered another illustration
OF the strong technical position OF
shares in general
IrregUlarity characterized the early
trading. An effort was made TO use
Judge Gsry's Utterances on the pros
pect Of lower prices in general as
an excuse for Offering shares In
the second hour OF business. but
the professionals were unsuCcess-
full in inducing offerings. On the
whole. Judge Gary's address before
the Iron and Steel Institute was
considered favorable in that he de-
cIared the outlook for business ts
be bright
General List Turns Strong.
The general list turned strong in
the early afternoon and gave every
indication Of a resumption OF the
upward movement when the call
money rate began advancing. This
resulted in irregulsrity. which pre-
vailed when the session ended.
Confidence in the stability OF
prices for securities is increased
daily by the remarkable QuiCkness
with which new offerings OF bonds
are absorbed by the general public
The huge amount OF new issues ab-
sorbed during the last three weeks
is considered significant in that tt
reflects a steady transfer OF cor
porate borrowings from the banks
to the investor. This is gradually
but steadily releasing more credit
and making for ease in the indus
trial situation.
Call Money Scars.
The rise in the call money market
to the highest point in weeks fur
nished much surprise TO Wall Street
district. inasmUCh as il came after
the government had withdrawn a
total Of about $5lOOO, 900. The sd-
fvance was attributed to the calling
ef a large number Of small broker
age loans. The extent Of the recent
transfer OF funds may be realized
from the fact that recently the clear
ipgs Of one prominent bank one DAY
amounted to one-thirdof its total de-
posits. The advance in the call
money rate today is considered tenn
porary and bankers look for easier
money.
A revival Of activity occurred in
I United Fruit. Buying was so urgent
: that II quickly advanced more than
/ six points 10 a new top for this
movement. Rumors that the COM
pany proposes declaring a stock div
idend Of from twenty-five to nifty
per cent this year continued 10 be
the incentive for the buying move
menJ
Predictions early in the day that
the shorts in Studebsker would be
run in" came true in the afternoon
when a concerted buying movement
on the part Of insiders advanced the
issue more than a point and closed
| il a shade under the best figure
I The engineers OF the squeeze were
aided by statements that the dlrec-
tors Of the company al their meet
I ing next week would declare the
regular quarterly dividend Of SIS
J share