The Washington herald., 1920-09-11
INTEREST LOST
IN WALLSTREET'
Outside Matters of Greater
Importance Demand First
Consideration.
STERLING COLLAPSES
Oil and Coal Stocks Strong.
Business Entirely Pro-
fessional.
STERLING COLLAPSES

New York, Sept lO.-Wall Street
was much concerned today over the
political conditions in Italy and the
coal situation in England. All other
Considerations were secondary in
the minds of traders. Sterling
broke to $3-5I which is the lowest
price il has touched since last
March and the oil and coal stocks
were strong, particularly Mexican
Petroleum, which furnishes large
quantities of fuel oil for English
consumption, and Pittsburgh coal,
The Mexican per cent loan con-
tjpued advancing under the influ-
eECc of President elect ObTegon's
conservative statement. The pri-
mary election news was regarded
az bUlIish as indicating a defect
q the league Of nations and the
ELECTION Of Harding.
Some time money made its ap-
DsaranCe and was loaned at SI2
- So per cent.
sThe steel corporation reported a
slrinkage in untitled orders of 313,-
49D tons
Business was aIm,.' entirely
professional The market was un-
steady at the opening and some
reactions were seen in active
stocks. In the early afternoon
strength Of the oil and cOai shares
brought everything back, bit the
close was unsteady.
The Italian situation ia ONE
thing that Wal Street finds, lifi-
cult to appraise in the stock mar
ket because it may mean 50 many
different things.
Dangers of British Strike.
The English coal strike that is
called for September - is a definite
event that can be measured in dol
lars on the exchange. If the Brit
ish cease to produce coal for any
extended period they will have to
import larger quantities of coal
and fuel oil from America and will
also have to let their ships leave
England without cargOes. Many
are doing that already. American
shipping, on the other hand, will
be able to leave home loaded with
coal or oil which can be disposed
OF in other countries in a market
without competition. The shipping
situation thus suddenly turns to
favor the United States.
Before the war Great Britain
=
of her own imports and exports in
British bottoms and the United
states only 10 per cent of her own
commerce. 1t is now argued that
the United States is in position to
demand so per cent of her own
business with all foreign countries
md the present coal strike is the
key to the whole situation.
This strike may make a material
change in the market sentiment
regarding shipping shares.
steel Tonnage Report.
Wall street refused to take today
the reduction in the tonnage Of un-
flied orders on the United States
Steel Corporation books because
it is well known that the demand
Tor steel is practically beyond limit
IL is true, however, that consumers
are holding off in expectation of a
reduction in prices. There is no
"fiicial warrant for saying thar
prices will be reduced but consum-
rs persist in waiting for a redUC-
ton, chiefly beCauce other commod-
iticS have been reduced in price.
Authoritative denial of reports
that the United Fruit and the
American International would in
in both the stocks but both held
remarkably steady considering the
extent OF the recent advance. The
real reason for the advance prob
ably is that the stocks went too low
n the big break and are now going
through the process of a normal
recovery.
Mexican bonds were again a fea-
. ture Of the market. rising to a new
high price.
Call Money Becomes Freer.
Money did not go above per cent
and in the afternoon it was per
cent, thus demonstrating the cor
rCCtness of the view set forth in
this column that the approach of
the income tax payment date means
eEsier cali money for a few days.
Money Is being accumulated for the
purpose of paying taxes and as the
banks cannot lend it on time they
are using it for call purposes. Tax
payers have learned by experience
not to certify tax checks The
government by rcdcpositinS these
checks does not, in reality. take
the money out OF tho market at all