New-York tribune., 1920-05-11
Market Closes
Lower After an
Early Advance
Mexican Oils Among Lead.
ers OH Rise, but Gains
Are Wiped Out at the
Close; Call Money at 8

N"eeIi iuiheSS generated DY rising
prices for stocks in the early part of
the session at the exchange yesterday
gave way to more or less disappoint-
ment when the market sold off in the
closing hour. On the carly upturn many
issues displayed pronounced strength
and not a few shares developed real
: 'buoyancy. Indeed, it looked for while
as If the professional element had set
out to attract larger outside follow
ing by vigorously bidding up the specu-
lative favorites.
1t did not, however. take long to
, change the whole complexion of the
market. for when signs appeared of a
tightening Of money--the call loan rate
advanced from to s per cent in the
, afternoon stocks were quite freely of
fered. and an absence of buying orders
caused prices to recede rapidly in the
industrial group. The market seemed
to be largely an affair of the profess
sional traders. Less than million
shares We're traded in.
For good part of the session the
oil stocks, led by the Mexican issues,
particularly the so-called Doheny
group, which owns large tracts of pro-
ducing land in the Tampico district of
Mexico, were the center of speculative
interest. Mexican Petroleum advanced
above 1870 at the height of the days up
turn. while bullish operations were
plainly manifested in the forward
surge in The Pan-American Petroleum
shares, which continued the advance
begun last week. In the afternoon,
however. the selling, which caused gen
eral price recessions throughout the
list. brought rather extended declines
in these issues, more than canceling
the early gains. Mexican Petroleum
showed special weakness, falling more
than 10 points from the high made
earlier in the, day The Royal Dutch
and Shell Transport shares forged
steadily ahead in the forenoon, the for
mer touching new high, but they also
were weak at the close. Rails were
steady.
To most observers the market looked
thin on both sides yesterday 1t took a
comparatively small volume of buying
to put prices up on the early advance,
and likewise the am mount of selling re-
quired to force rather large declines
in the closing hour was not large. Such
a market could hardly be considered as
rejecting little more than the shifting
operations of professional floor traders.
Certainly it did not reflect any of the
news Developments over the end Of the
week. The trend of events in Mexico
no doubt stimulated some of the shorts
IN the Mexican oils but beyond that it
was not much of a market influence.
Action of Steel common, which
dropped swiftly to AIS on the morning
bulge, held more than usual interest
in view of the statement of untitled or
ders issued at midday This showed
that the corporation had increased the
orders on its books during April 467,-
612 tons, making it the twelfth cor
secutive month in which increases have
been reported. Obviously the gain
recorded in April was due rather to a
slowing down of deliveries because of
the rail strike than to any large rush
of new business. The drive against
Steel common in the final hour was evi-
IDENTIFY intended to induce selling in
other parts of the list
While stocks were displaying strength,
the Street professed to be much i'm
pressed over the improved outlook for
the winter wheat crop. The latest bull
letln dlscloses some betterment in the
condition of the growing crop, but the
indicated yield is far under the total
production of last year. Generally the
crop outlook is unfavorable owing to
age of farm labor. The view taken by
the financial community is that the
country is not likely to have much of
surplus for export this season
The amount Of money loaned at per
cent on call yesterday was not large.
Renewals and most of the loans we're
made at Z per cent. The foreign eX-
changes were irregular and quiet, with
sterling easier.