The Washington herald., 1920-05-04
STOCKS SHOW
FAIR RALLY
Easier Money and Steel Dis
solution Denial by SUI
preme Court Factors.
woOLEN FADES AWAY
Stock Reaches New Low
Level on New Financing
And Strike News.

NeW 1orks may r. Tne week
started on with the stock market
displaying the much-discussed rally.
practically all of the leaders show
ing substantial gains at the close.
Easy money and the Supreme
Courts refusal to reopen the Steel
dissolution suit were the main fac
tors working toward higher quota
tions.
However. In conservative banking
circles prolonged upward move
ment In speculative stocks 10 not
anticipated II the rally should run
for the coming week IL would be
a surprise to these interests. From
their point of view underlying con-
ditions do not warrant prolonged
bullish operations. while on the 9TH
er hand there are many indications
of a lower price trend.
LIquldation Continues.
There is no denying the fact that
liquidation Is taking place in many
stock groups whenever they display
the least strength. This liquidation, n,
II Is said, is coming from sources
far better posted on general con-
ditions than the so-called public
element. In fact, II Is the latter
element that Is doing most Of the
buying at the present time, outside
of those pools whic hare endeavor-
ing to get out from under.
Another indication of a lower
price trend Is that heavy short SELL
ers of stocks are not at all worried
when prices rally. On the other
hand. they show signs Of elation and
double their commitments at the
~ a.. - 81
en- by close market observers that
the shorts have come to the conclu-
sion that the time is ripe for an
eventual killing.
Motors Under Pressure.
The consensus of opinion seems
to be that many of the motor COM
panies have about reached their
peak. and for this reason extremely
heavy sales. both for long and
short account. continue noticeable.
Studebaker has been under pressure
from 125 down, and the shorts seem
to have no fear of placing ad-
ditional large commitments at its
present quotation The stock divi-
dend will come OF of Studebaker
this week. and traders believe the
issue will be as good. IL not a bet
ter target to shoot at the lower
level.
WooIen.
Il was Q week ago that Woolen
made its sharp upturn from III to
around 1s2. woolen was the center
Of bullish talk at that time. Stock
dividends. liberty bond melons" !"
and various other benefits were go
ing to accrue to woolen stockhold-
ers. But today's talk was decided
ly along different lines. woolen
seems to have turned "shoddy" on
those who were unfortunate enough
TO purchase the stock at much
higher figures. Instead of q melon"
1t Is now said that the company
may be forced to call on share
holders for more money in the form
of additional financing. It Is men,
aced By q prolonged strike. not
only the fault of the workers. but
the company itself. inasmuch as
President Wood is said to have re-
marked that the company will close
shop for good rather than submit
to higher wages. Another bearish
fact on Woolen. and one that
should not be overlooked. Is that
instead Of marking up its quota
tions on goods for the coming sea-
son. 1t Is forced to accept business
on q scale down whenever q sale
is possible.