The Washington herald., 1920-09-12
STOCK TONEIS
MORECHEERFUL
Best Banking Quarters Be-
lieve Present. Outlook to
Be Favorable.
OPINIONS ARE DIVIDED
Belief Also Expressed That
Reaction Is Due Before
Upward Trend.
OPINIONS ARE DIVIDED

Although money rates may pos
sibly work a trife frmer between
now and the middle Of the month
because OF the unusual demands
that will be made on the banks for
accommodation in connection with
the income tax payments, dividend
and interest disbursements, II was
felt in the best banking quarters
that the outlook for the stock
market as a whole was favorable. .
In some quarters. however, the /.
opinion was expressed that there .
might take place a reaction in quo .
tatfons before another pronounced .
upward movement takes place .
throughout the list. 1t is well .
known that some large and in1u-
entail financial interests are buy
ing stocks. including some of the .
mills as well as certain of the iu- .
dustriaIs. and therefore on any set /
back which may occur it IS thought .
that the character Of buying will ,
he such as TO prevent any COntin- I
ued downward movement in the /
security list.
There was further bUllish tain |.
regarding American International T
which at present quotations shows /
an advance OF more than ten points /.
over the low levels touched earlier /
in the year. II was pointed out
that this company is in a perfectly .
comfortable position. and unQues-
tionabIy will be able to maintain |
its present per cent dividend .
without difficulty Possibly the
strength displayed in this issue
may have been due in some meas
Ure to the sharp rise in United I
Fruit stock. which scored an ad-
vance of more than ten points dur
ing the past week, most Of which |
was maintained up to the close Of
business Friday evening. The
American International Corpora !
tiun. as is well known. owns large
block Of the Fruit Company's stock .
and 10 important developments are
pending in connection with the at n
fairs OF tnat corporation. naturally I
the American international Cor
poratIOn would profit to an appre-
CiabIc extent
In usually weu-informrd quar-
tiers the opnigG was expressed that
movement Of considerable proper |.
tions will take place in the oil is ,
sues. particularly the lOw-priccd .
stocks included in this group. T,
Transr0nJinan-aI. Caddo. Sinclair.
etc. have displayed a marked de .
ErrsS of strength for several days :
passed. and have easily moved into .
new high territory on the present. .
rise. ON the Curb White oil and
GiuUand OH wcrn feature. while 4
Simms Petroleum was traded in in
large volume although the price
change was not ol as large a pro
portion as that Of the other two .
securities. on the board the MeN-
lean Petroleum and Pan American
Petroleum issues were strong with
a heavy turnover being recorded in .
them. this being particularly true f.
in the case of the Mexican Pc .
JroI-Um following the announce .
men- of TN, dividend rate being
placed on a i per cent per annum
level.
Stc-I sto.k were active and il
was said that fairly good buying
took place in United States steel
common. NOT wirEstanuing that pres
ent quotations represent a recessionf
from those obtaiLinE d week ago.
It was stated in good banking
quarters that the buying OF steel
had been by "a strong group of in
tvTeSts -hp drr now aCCumulaJinE
thar issue in the expectation that it /
later on will rnJOy marked better f.
menr baldwin Locomotive. Cruci-|
BILE Steel L1ckHwanna and RcpUb-
tc Iron and Steel were popular
with investors. although the volume
Of buying was mot sufficient to
create any pronounced advance in .
these issues
In the rail list such issues as
Southern Pa fife Union PacifC,
New York Central Rock Island. st.
Pau and Frisu" were the favoritrs, .
while it also was reported that
Southern Eailwas common was
gradually being absorbed by som"
Of the strongest banking interests
in this city. The rail list was looked
upon with greater favor than indus
trials il bnIu- asserted that rail
road stocks have been so thoroughly !,
lICuidItcd uv..~ long period Of I.
time AS 20 render them attractive
even at tho slightly improved tone
which has been reflected in that de-
partmCnt I3r the past few weeks
\ factor which should not he
overlooked IN connection with the
stock market situation is that Of
the large volume Of gold which it
is known is On route To- the United +.
States at the moment with the as
sUrance that still further substan-
tial totals are to be sent from the
other side within the next. few
weeks This is rot bpariSh fac
tor. and while il does not assure a
continuance Of advancing prices il
Is interpreted as indicating that
money rates ShO-ld not stifrfn to
any appreriAblc extent Another
factor which would rather tend to
Indicate easier money conditions
was that of the pronounced success
Of the French government $780,
00h.""o loan W - n was offered for
subsC riDti0n by a syndicate headed
by J. p. Morgan & 60. Tho fact
that more than Sl5O.0OO. 600 Of boni-
f ad subscriptions were received
for this issu" speaks well with re-
sp,Ct to the money market situation
generally throughout the country
Another factor is that the average /
subscription received was for
amounts aDD-ISimately g.. 500 per,
subscriber This is an accomplish
mCnt which has never been recorded
in Wall Street in the past.