The Washington herald., 1920-09-19
UPWARD TREND
DUETOPOLITICS
Republican Victory, Which
Wall Street Expects,
Is Bull Argument.
OIL OUTLOOK BRIGHT
Their Excellent Condition
And Liberal Earnings
Justify Price Increase.

There appears to be a growing /
feeling in Wall Street that the Re
publicans will carry the country by /
storm on November next and this |
belief is said to have been largely
responsible for the general upward I
movement which has developed in
the stock market. The gains re-
corded were not confined to any /
special group but well distributed
throughout the list, including oils,
the sugars, motors, the steels and
the rails. The sensational advance
of more than ten points in Mexican
Petroleum on Friday was in keep I
ing with the general expectation of .
those who have been following the
stock market situation closely and .
who have expressed bullish Convic- /
tions recently with respect to this
particular issue. The Pan American /
Petroleum stocks also were active .
and easily scored advances of sub |.
stantial proportions. The affairs of
these oil producing corporations are /
stated to be in excellent condition |.
and earnings are of such liberal I.
proportions as to warrant the eN-
peCtation of considerable price ap-
probation in their stocks within /
reasonable time Only a short time /.
ago the Mexican Petroleum increas- |
ed its dividend rate to 12 per cent
per annum and 1t is felt in important
banking quarters that similar steps
will be taken by the Pan American I
in due season.
Motors.
There was considerable bullish
talk heard relative to the motor
stocks, Studebaker being promi |
uentIy mentioned. while it also was
said that some of the strongest in
torests in the street had been heavy
buyers of General Motors common.
Those who sold several thousand
shares of the stock at around 40
some time ago, on Friday were re-
ported as having repurChased a sub I
stantial part of the issue which they
had liquidated at the higher figure
The automobile companies as
whole are cndCavoring TO reduce
heir inventories and already have
taken steps to Curtail output in or
der to be in a position to cope with
any favorable situation which may
develop in the trade later on.
Rails.
In the rail list, considerable bull
ish talk was heard relative to st.
Paul preferred. Lackawanna, South
rrn Railway, Pierre Narcotic, New
Haven, New York Central and the
Uiu STOCK. There was a firm tone
in all Of the rails throughout
Thursdays trading and the feeling
most general was that this group
,C isses will be market leaders after
the turn of the new year. On the
basis of the provisions of the new
railroad law, this class of corpora
lions will be in n position to earn
g. living return and at the same time
-chabilitate their properties.
\ banker who is familiar with
affairs relative to the American In
tcrnational Corporation said that in
his opinion. this issue should do
much better marketwise particular
1v as the corporation stock possess
an actual book value in excess of
$50 A share. With improvement
.Isowhcrc in the list the stock of the
american International naturally is
entitled to advance, particularly as
IL is well known that its holdings
Of the securities of numerous other
corporations are extensive. It was
aid in banking quarters that the
National City Bank crowd had been
heavy purchasers of \. l. c. stock
during the past fortnight.
Steel and Equipments.
Steel issues and tho equipment
stocks were well bought on Friday
and easily moved into higher terri
tory. American Beet Sugar was the
rcaturc in this group of issues. hav-
ing scored an advance OF several
POINTS on a moderate volume of
transactions. The outlook for the
-ugar stocks is said to be favorable.
Oils.
Oi issues have been q factor in the
hCttcrment that has been displayed
IN the stock market recently, par
ticularIy the low priced securities
included in this group, such as
TranscOntinental Oil. Sinclair, Mid
dIc States, and Union. The high
priced oils also have been eXCep-
tionally strong, Mexican Petroleum
and the Pan American issues as well
as Houston Oil and Royal Dutch dis
rrIayinE a strength which has not
been noted for some time past.
those who arc familiar with the oil
situation professcd to believe that
during the coming year there will
nc considerable degree of activity
in the oil issues as a whole and that
.hCse stocks will at times be the
leaders from market point of view.
Money Outlook.
Much depends on the money market
situation, and the opinion most gen
cral in financial quarters is that an
easier tone will be in evidence from
now on with frcer supply OF funds
Significance is attached to the fact
that the September Is income tax
dividend and interest payment date
was passed without so much as an
upward furry in rates. As a mat
ter Of fact the call rate as we'll as
that for time funds was somewhat
lower on that date and this has
tended to strengthen the belief that
the stock market as a whole is now
on the eve of a general upward
movement.