New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-02
Railway Shares
Advance Further
On Active Buying
This Group Assumes Market
Leadership; Industrials
Do Better i'm Late Trad.
ing; Time Money Loaned

Accumulation of railway shares went
on yesterday in the stock market in q
most convincing manner. Indeed, the
buying of the rails was so confident and
we'll sustained that 1t not only carried
the group to new high levels for the
recovery, but also had a most bene-
-ficial effect on the rest of the list, re-
sulting finally in causing a substantial
move for the better in the industrials
before the market drew to close.
For the first time in several DAYS
Wall Street experienced the pleasure
of borrowing call money at lower rates.
Call loans renewed at per cent, as
has been the'cas for some time past,
but in the afternoon the banks became
quite liberal with their offerings-so
much SO, in fact, that brokers found
an abundance of funds available at 7
per cent. This development, together
with the maintenance of strong tone
in the railway end of the market, dis
for the time being, and was steady
ing influence in the industrial list.
The active turnover in the rail
shares yesterday recalled the old pre-
war days in the stock market, when
the railway issues held first place in
speculative favor The active leaders
were the rails, with Reading, St. Louis
& San Francisco, New Haven, Balti-
more & Ohio, Denver & Rio 'Grande,
Rock Island and Missouri Pacific the
more prominent. Union Pacific, SELL
than recovered the amount Of tho dis
bursement. something that was Of fire.
quent occurrence in the old days. but
which of late has been rare. The man
ner in which the low-priced rails were
taken in hand indicated a growing be-
lief in the ability Of the weaker roads
to improve their financial position as o
result of the new railroad legislation.
Gains in many Of these rails exceeded
g point, and in some cases points.
1t was the same kind Of buying which
has been putting new life into The
whole rail group for more than 81 week,
and was not based upon any new de-
velopment in the news. Railroad bonds
also continued their movement toward
higher prices on active trading.
The rally in the industrials toward
the end of the day seemed to be largely
the result of desire on the part Of
the professional bears to cover in a
portion of their short lines. This was
only natural, in view of the surprising
strength displayed by the rails and the
fact that the market will be closed
for three -day period beginning Satur-
day. Steel common moved uD point
in the late trading, while other specu-
lative leaders like Baldwin Locomotive
and Sinclair Oil were actively pur-
chased on rising price scale. Early
heaviness in the industrial department
was featured by special weakness in
the motor share group, which was ad-
vcrsely affected by the announcement
of the appointment of receivers for
another automobile concern. The mo-
tors were backward most of the SEES
sion, and failed to rally with the rest
of the industrial list, even on the late
The developments in the money mar
ket were interesting and significant
For the first time in months brokers
found substantial amount OF time
funds offering, and loans were placed
for four months period at 8A per
cent. This was accepted as indicating
confidence on the part of the banking
community in the immediate future:
Call money was quite plentiful at 7
uer cent at the close.
The governments bulletin on the
cotton crop. indicated yield of 1888,
900 bales. If this promise is fulfilled
the crop will be the largest in five
wears