Evening star., 1920-03-15
HOLD Up
IN FACE OF NEWS
BY STUART r. WEST.

Special Correspondent of The Star.
WALL. STREET. n. Y. March ID
Wall street brushed aside all obstacles
in the way of resuming its upward
movement today. Some doubt was eX-
pressed as to how the news from Ger
many over Sunday would be received,
but all idea that this might be an in
f1uence in the trading was soon dis
PEELED. The only effect at all was felt
very naturally in the German eN-
against 10 on Friday. This meant
the loss of the entire recovery from
the very lowest.
But while mark exchange was thus
rejecting the belief that a civil war
in Germany was impending, the rest
of the financial markets continued to
assume, as they had on Saturday, an
attitude Of Indifference and even to
reflect a secret undercurrent of salts
faction in the shift of power away
from the radicals. Even sterling was
not sensitive; it held most of the day
well up to the Saturday final.
Money Rate No Restraint.
The call money renewal was fixed
at Fer cent as against Z at the close
of last week and this was the prevail
ing figure on new loans also. But
that these higher quotations We're due
to the income tax requirement and
would undoubtedly not outlast the
week. they had no restraining effect
upon the operations on the stock eX-
change. In fact, the 9 per cent re-
moderate under the circumstances and
therefore in a negative sense en-
couraging.
The fact that for the third week in
succession the federal reserve bank
ratio showed an increase, even al.
though a slight one, made very ia
vorable impression. 1t bore out the
contention that the peak of the cred
1T troubles was reached at the out
set of the month and that since then
the tendency to improvement has been
well defined.
Inasmuch IS the credit situation has
been since November the great out
standing difficulty back of the stock
market. ii is not at all surprising that
trading in stocks should have been
very responsive to the indications that
the turn for the better had come.
All classes of stocks were taken up
in the course of the days upward
movement. In the early part of the
session attention converged upon the
industries. But in the afternoon the
buying spread to the public utilities
and the rails.
CfucibIe Strong Factor.
The most powerful specific stimulus
of the day came from the upturn in
Crucible Steel. which got up very close
to its high record for all time. This
was a reminder of the speculative pos
sibilities involved in the recent Su-
preme Court decision and the conse-
quent ability of the big corporations to
go ahead with their program of stock
dividends.
Ill
to put it's plan through, and this was
the reason. of course, for the sensa-
tional advance in the stock Saturday
and today. But it was natural that
the great strength in Crucible should
rearouse enthusiasm for all the other
Wool, United States Rubber and so on
that are in the position. if they chose,
to cut melons for their shareholders.
The main reason for the recent
strength in Industrial Alcohol. which
made the stock one OF the leaders
again today. lies in the export busi-
ness which the company is doing.
Those in position to know describe
this business as enormous. 1t is one
OF the things which is not being held
back exchange conditions, because
commercial alcohol Is one of the prime
necessities and is particularly neces-
sary to Europe in its industrial up
building. Nothing much is being said
nowadays about the new alcogas. but
this Is not because the new product
is disappointing. On the contrary,
the new motor fuel is entirely salts
factory in it's development stage; the
only thing is that it has not yet
reached the commercial stage.
Bethlehem Steel.
With the revival of interest in the
steel shares, it is worth calling atten-
ton again to a discrepancy between
the present selling price of Bethlehem
Steel A and Bethlehem Steel b. The
b. stock is selling in the market and
has been right along some four points
above the a. stock. Yet both share
alike in dividends and have the same
status in respect to assets. Moreover.
the issue OF "A" stock outstanding is
smaller than that of "B" stock, and the
"A" stock has the voting power which
the "B' stock does not have This
the better market in ''B' shares as
compared with the "a" shares, but on
the basis of actual value the latter is
worth more.
saHon Motors.
Saxon Motors was one of the fea-
lures Of todays trading. opening up
more than a point on heavy buying
orders. The stock came into promi-
nence toward the end Of Last week.
situation in Saxon can be readily ex-
plai ned by the statement that the new
management is profiting by the mis-
takes OF it's corporate predecessor and
that the inside position of the COM
pany has been very much improved
since the reorganization. The new
company started in business with
working capital of over s2.000,000 and
is said to have perfected it's car to
such an extent that it has again come
back into public favor.
Crucible Steel shorts were pinned
again today, some of them. at any rate,
being forced to cover their stock put out
last week from 20 to 80 points higher.
inside that Crucible earnings at the
present time are running close to $S4
q shars on the common for the year
before taxes In the month OF January