The Washington herald., 1920-09-29
STOCKS RECORD
SLIGHT GAINS
Improvement Attributed to
Short Covering in Absence
Of Constructive News.
BOSTON WIRE PLEASES
Federal Reserve States Fun
damental Banking Position
Is Perfectly Sound.
BOSTON WIRE PLEASES

New York. Sept. 2s-Quoted prices
for stocks rallied somewhat today
from the low levels recorded yes
terday but the Improvement was
attributed more to short covering
than anything else inasmuch as
there were no new developments
fundamentally to warrant higher
prices. Perhaps the most optimistic
niece of news received during the
day came after the close of the
session. when the Federal Reserve
Bank of New York, announced that
il had received a telegram from the
Federal Reserve Bank of Boston,
stating that the fundamental bank
ing position in Boston was per
fectIy sound" and that none of the
federal reserve members were in
volved in the difficulties experienced
by trust companies which posted
ninety-day notices relative to saw
ings deposits
While the financial district mani
Tested considerable interest in the
price cuts made by some of the au-
tOmobile companies, general opin-
ion was that the reductions had
been discounted in the recent de-
probation in the market prices of
motor shares.
General Undertone shown.
The general market showed a
heavy undertone at the opening. but
lower quotations were taken adyan-
tage of by the bears to cover out
standing commitments so that by
the end of the first hour of the ses-
sion the trend was distinctly up
ward. Toward the middle Of the
day quotations hesitated and re-
ceded slightly, but a good part of
the gain was maintained up to the
close.
Call money ruled throughout the
stock market session at 7 per cent
but after the close 100000 was
loaned at . per cent.
Rails.
Railroad shares were again in
good inquiry but the improvement
in prices was more marked in the
dividend paying issues. Several
railroad consultations are again
being discussed as possibilities.
Most significant of these is the eX-
pectation that in order to provide
for the 1921. 900, 900 of Chicago, Bur-
linEton and Quincy joint As which
mature next year a plan is expected
to be outlined for the consolidation
Pacific and Chicago, Burlington and
Quincy. Prominent local bankers
admit that the task of providing for
this large maturity is a most diff
cult one.
Motor shares Improve.
Despite announcement of reduc-
tiOn in prices by several automobile
companies, the motor shares showed
slight improvement. indicating that
the price cuts had been largely dis
counted. Other reductions are eN-
pected to be made public in the near
future. Maxwell Motor shares
touched new low levels. the COM
mon and second preferred selling at
the new bottoms Of 5.
Important banking interests are
keeping a close watch on develop
ments in Mexico.
. Interests continue to grow in the
shares of foreign oil companies and
important developments are ex-
peCted to be announced shortly with
regard to Royal Dutch and Shell
Transport and Trading.
The outlook for the Copper shares
is much less optimistic than it was
two weeks ago, according to the
best information obtainable. I'm
pOrtant producers declare that the
demand for the metal is now less
than one third Of production so that
there is a steady accumulation Of
the metal.