The Washington herald., 1920-06-05
STOCKS HAVE
DULLSESSION
Practically All Business
Transacted by Profess
sional Element.
U. S. STEEL FEATURES
Tobacco, Crucible, Baldwin
And Mexico Petroleum
Show Strength.
U. S. STEEL FEATURES

New York, June 4.-Business was
on a small scale again today, and
while about 100 stocks showed net
gains nearly that many showed net
declines and half as many did
nothing at all. Business was al
most entirely professional except In
few specialties, where there was
special reason for buying. The
tobacco stocks were a strong fea-
ture, particularly Retail Stores.
United States Steel was the big fes-
ture of the last hour. It sold up
to 81, thereby convincing the pro-
fessionals that IL viii probably 60
four or fve points more. Crucible,
Baldwin and the Mexican Petro-
leum issues were strong.
What strength there was in the
market was due partly to shor,
covering and partly to a report
that the political leaders at Chi
cago had united on Coolidge for
President If betting means any
thing, the Coolidge chances are
vastly improved, for the odds
dropped from Is to 1 against him
to z to 1. With Coolidge as head
of the ticket. Wall Street would
feel confident OF the elimination of
all undesirables in Washington.
Money hung around per cent
all day.
The Belgian Loan.
Success of the Belgian loan is
based almost entirely upon the lot
terry feature. Back of that is a
feeling that the great nations would
not permit Belgium to default on
a loan, but would get behind the
country If such a thing were prob
able. The American people love
to gamble, and this is the first
time a really rich prize has been
held up for them in a legitimate
way. Sale of these Belgian bonds,
therefore, does not mean anything
so far as credit conditions are con-
earned. Belgium had to have the
money, and the bankers adopted a
method that was sure to produce
IL.
General Motors.
1t was admitted today that the
General Motors outfit would take
all its steel in the future from the
United States Steel Corporation. 1t
is almost enough to make one won
der how much fact and how much
bluff there was in the recent talk
about an independent steel combi-
nation to be identified with General
Motors Wall Street wonders just
why ]. P. Morgan & Co. suddenly
manifested a desire to do the bank
ing for the General Motors. The
identity OF the underwriters of the
new General Motors stock would
make an interesting exhibit United
States Steel Corporation has a lot
q of cash. So has the American Car
and Foundry Company.
The Railroad Situation
Report from Washington today
was that the Interstate Commerce
Commission could not finish up it's
investigation of railroad needs un-
til September at the earliest and
that therefore no advance could be
granted until that time. The ad-
vance, when it does come, will prob
ably average 80 per cent for the
whole country. Wages will absorb
a large portion of this. One bad
feature of the railroad situation is
that so many men are leaving the
service and going into other work.
This fact has been stated in this coll
umn before and now 1t is oficially
proclaimed by the union labor lead
ers. There is no doubt that the men
who are leaving the railroad .serv-
ice hace not received a square deal
but the failure to receive such a
deaf is the fault Of the union leaders
who gave the money to favored
classes of labor. Nothing but high
er wages will bring sufficient labor
back to the railroads.