New-York tribune., 1920-07-01
Improved Tone
In Stock Market:
Money at Is P. C..
Many of Speculative Lead
ers Register Substantial
Recoverics, But Trading
Is Not Active; Big Pay
ments at Hand

One OF those inexplicablc changes in
sentiment so common to Wall Street
took place yesterday, and the stock
pansion in speculative activity, dis
played a much better tonc. In the
early hours the industrial shares
underwent general improvement, with
prices Of the more speculative issues
registering substantial recoveries on
comparatively light buying. After mid
day the demand slackened and the
market relapsed into dullncss. there
after moving narrowly, but at the close
the majority Of stocks showed net
gains.
Action of the market demonstrated
to the satisfaction of the bullishly in
clined traders the sound position of
the market. While the buying repre-
sented largely the covering operations
feature was the ease with which prices
moved up. To those who have taken
the constructive side this indicated
that the market was in position to
respond favorably to a revival Of bull
| lish operations should the developments
in the immediate future warrant.
A psychological factor which doubt
less played a part in shaping the
course of prices was supplied in the
optimistic statement credited to one of
the largest speculative operators in
to the gossip of the Street, has been
numbered among the bears. The, bull
lish outgiving from this sour4 in
duced the covering of short contracts
in many of the speculative leaders and
impaired strength to market which
for couple of weeks has been Gagging
from lack of support.
The strain imposed upon the banks
by the extraordinary payments Incl
dental to the end of the half year
settlements caused some unsettlement
in the money market, and the rate on
call loans, after renewals had been
made at 9 per cent, rose steadily in the
afternoon until it touched Is per cent.
This established a new high for the
current period of credit stringency,
overtopping the high of IA per cent
made last week. 1t is the popular be-
lief that after the July l payments
have been completed and funds with
drawn have returned to their normal
channels the money market will settle
back into a somewhat easier position.
AS emphasizing the present condition
of credit strain, the advance in COM
mercial paper rates was an interesting
and highly significant development.
Prime bills were discounted on a
straight per cent basis, against a
recent rate of tx per cent 1t is a
great many years since business has
had to pay such high charge for
credit.
Among the strongest stocks yester-
day were the Mexican oils, some Of the
tobacco shares, the chemical issues
and the railway equipments. Vanadium
held first place in po;n. of activity on
reports Of the discovery of a new ore
deposit on the company's Peruvian
properties. Baldwin Locomotive moved
above 119 on the forenoon upswing
and closed more than a point up at
1875. American Express loomed up
with an advance Of 16A points on q
turnover of 1000 shares.
Reports Of conditions in the iron
and steel industry indicated that
trouble due to poor railway service
continues. Steel mills are said to be
operating at a fair rate, but finished
products are piling up rapidly for lack
of cars to carry the stuff to delivery
DOiptc