The Washington herald., 1920-08-29
WEEKLY STOCK
MARKET STUDY
Professionals Believe Up
ward Trend Is About
90 Per Cent Spent.
EXPECT TIGHT MONEY
Others Predict Present Ad-
vance Will Continue Well
Into Next Year.

unent is about 9S per cent sPeht oN
that within the next week the Ten
dency of stock prices will De down
ward for a period OF two OF tnL
weeks following. They base TINS
sartion on the assumption that
money will be tight during Septem-
bar when the crop mOvinE season
S-o,,, the West and Northwest Will
he we'll under way and that there Is
not enough available money TO per-
,,it Of a continuance in the lmlhe-
5ja+a future. of a bullish demonstraT
tio7 ~ any proportions. Two weeks
40 these same bankers accuraIely
DTsdicted the upward movement
which has taken place and whlch
they believe is now about at an emu
On the other hand there are many
in the street who insist that pre-
dictfons Of this character are
rroundless and entertain the Dellet
that the market is in the MIDST CL
an advance which will continue wei
into next year. They insist that the
very drastic CUrtailment which mas
taken place in Commercldl eh'El
prises generally throughout Ie
country will release such large
soTSounts of cash that there will be
annie funds to meet such so-called
wall Street requirements as may De
demanded by the speculative or IN
vestment group. Some careful stu
dents of financial affairs, however
saw that a pronounced rise in prices
would not be viewed with equanlm-
ity by the banking community, par
tfcuIarly as the effort is being made
to hold the loan position of the
hanks down to a level which VIII
stabilize the banking situation gen
orally throughout the country. The
efforts Of the banks to bring about
commodity liquidation. already nave
met withNa marked degree OF sue
cess and there recently has taken
place a greater degree Of contraction
than most people have been willing
TO believe could possibly occur in so
short A time. Conservatism appears
to be the key note generally
throughout the East. Middle West
and West and there has been
marked falling off in business fol-
lowing extensive cancellations of or
ders in different lines with the re-
suit that large numbers of employer
have been laid off all over the COun-
try In a way this has been bene-
fetal because il has permitted a re-
distribution of labor to channels
where it is most needed and this has
been particularly true in the matter
Of providing an adequate supply of
men to harvest the crops. In the
Southwest no difficulty whatever
has been experienced in obtaining
farm labor and recently there has
taken place substantial improve
ment in this respect in the West
and Northwest, although liberal
wages are being paid men to engage
in this line Of activity.
Railroad Stocks
Those who are usually well post
ed on the general situation enter
tain bUlIish views with respect to
railroad securities, predicting that
1921 will be a banner year in this
respect, particularly as regards
many Of the Iow-priced issues.
Southern Pacific is regarded as one
of the railroad stocks which will be
favOrite once the upward move
ment in the rails has begun and it
was said that there are special rea-
sons for entertaining this belief
Union Pacific has given an excellent
account of itself. recently advancing
to a new high quotation on the
present upward movement and it
is felt that most of the gain which
already has taken place in this is
sue will be maintained even though
a general temporary reaction occurs
in the stock list as whole. Rock
Island. Frisco, New Haven, Erie,
Pere Marquette and other issues in
cluded in the sO-called lOw-priced
rails are spoken Of as likely to be
favorites when the expected move
ment gets under way. 1t was said
also that the buying Of Reading
stock recently has been most i'm
pressive.
Oil issues, some observers feel, are
in line for a renewed upward move
ment. particularly as most of these
stocks have been thoroughly liqui-
dated in recent months. Practically
all Of the oil stocks have undergone
drastic declines and are now quoted
at levels from fifty to sixty points
below the higher quotations Of a
few months ago. Some of the newer
offerings Of oil stocks have under
gone an even greater degree of loss
propOrtionately than have the older
and more seasoned securities. Mex
lean Petroleum and the Pan Amer
lean Petroleum issues were spoken
Of as likely to be among the first to
respond to any constructive upward
movement Inat may take place
throughout the list 1t is felt. how
ever, that the present is the time to
exercise extreme conservatism in the
matter of fresh commitments be-
cause the general situation has not
yet reached a point which will per-
init positive predictions as to the
immediate outlook. Obviously Wall
Street will not wait for a thorough
reCuperattOn Of business conditions
before discOunting what is to take
place later on and for that reason
the opinion most general is that on
any recession in stock market quo
tations purchases may be made with
a view to riding the market upward
Tor a substantial move.
Motors.
Motor stocks, following the re-
ports from numerous sections of
drastic curtailment and overproduc-
tion of cars have sustained a con-
siderable drop and those who have
held aloof from purchasing the Sc
curities included in this group are
again beginning to make inquiries
as to the probable course of activi-
ties in the trade six months hence.
II il is established to them that the
recuperation Of the motor industry
will begin at a date as early as six
months from now. il is not improb-
able that accumulation of motor
stocks will begin at the present or
possibly slightly lower levels than
those now obtaining.
Steel.
United States Steel common ha.
III a, -,