The Washington herald., 1920-09-08
SLIGHT GAINS IN.
WALLSTREET
Trading Is Resumed on
Moderately Heavy Scale
After Long Layof.
RAIL STOCKS HEAVY
New French Loan and
Mexican Pete Dividend
, Outstanding Features.
RAIL STOCKS HEAVY

New York, Sept 7-Oficial an
nouncement Of the new French loan,
increase Of the Mexican Petroleum
divided from ten to twelve per cent
and a sharp advance in cotton op-
tions were outstanding features OF
the stock market today. Money re-
newed at seven per cent but rose to
eight per cent in the late afternoon.
Sterling was inclined to be weak in
the morning but braced up in the
afternoon. Announcement was
made Of the terms of the new chem
ical merger which provided for a
corporation with a capitalization
equivalent to about 5000, 100000.
Trading was on a moderately
heavy scale. In-the morning there
were advances all along the line
but in the afternoon profit taking
made its appearance. In spite Of
this profit. taking many issues
showed gains for the day.
significant feature Of the day
was thS heaviness of railroad
stocks. The professionals had ex-
pected them to continue advancing
but as soon as the direct manipula-
tion of these shares was withdrawn
all became quiet, thus indicating
that they have no public following
as yet.
This market has gone up nearly
ten points without attracting the
public but there is already evidence
that the public is getting interested
for it is asking for quotations, al
though not buying anything Of i'm
portance. Brokers say their loans
are still very small because stocks
are in the hands Of the big inter
ests.
Another factor in the market that
tends to back up the belief of
bull campaign is the strength of
Mexican bonds. This, taken in con-
nection with the increase today Of
the Mexican Petroleum dividend Is
significant.
1t is understood that there will
be developments soon in regard to
their iron products company which
is a merger of the old Continental
foundries and the Essex foundries.
New French Loan.
Announcement of the French loan
pleased Wall Street because of the
fact that the French government
agrees to buy up the bonds in the
open market up to l1O. This will
tend to keep the market for the
bonds above par and it is a fine
way to employ a sinking fund. II
was the failure Of the United States
government to adopt some such
measure that caused the heart
breaking collapse in liberty bonds.
After FIVE years the French will re-
tire bonds at 10 by lot at the rate
of $4,000. 900 a year. The issue
went well with the street. In or
der to encourage the transfer Of
old bonds into new ones the French
government will on October l pay
the full principal and interest on
the old bonds to such holders as
buy new bonds with the money.
This gives them fifteen days in
terest as a bonus.
L. :. Steel Runners.
Every few months Wall Street
hears that the United States Steel
Corporation is going to pay a spe-
cial dividend in liberty bonds. 1t
is only reasOnble to expect that
this will be done. Today the old
story was varied. 1t was said that
instead of paying a dividend in
bonds the company would sell the
bonds in the open market, use the
money for working capital and give
the stockholders a scrip dividend
representing it. There is no official
confirmation of this report and It
is given for what il is worth.
Terms Of the chemical merger
provide for a new company with
S4.616,56O Of per cent preferred
stock and 2.621.977 shares of COM
mon without par value. However
this common stock is being ex-
changed for stock which is of 800
par so that the new company may
be considered as being capitalized
at just under $500. 900 900. There
were some slight changes in the
prices of the constituent companies
today in order to reduce them to
the common denOminator which
were offered at 81 on the curb.
This advanced Barret more than 4
points and Aniline nearly points
but reduced General Chemical