The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-02
FINANCIAL NEWS
AND COMMENT
Trading Is Unchanged and
Technical Position Is
Weaker at Close.
RAILS CONTINUE UPWARD
Industrial Issues Lag and Rise
of Better Grade Stocks
Slows Down.
RAILS CONTINUE UPWARD

There were very few incidents OF inn
portance in yesterdays stock market,
but what occurred tended to confirm the
conviction expressed in stock market
circles on the preceding day that stocks
had been temporarily oversold The in
dustrial section of the list. for Instance.
showed n better resistance to the sell
ing, in spite Of the fact that most stocks
went through their old lows. and there
was moreover. n disposition to rally the
market IN the last hour or so. Nothing
occurred, however. 20 indicate that the
market was meeting any more support
than usual from outside sources II
was simply case Of the selling haV-
tns been overdono for the time being
and, rs the market closed with the short
interest partially eliminated. the tech
meal position seemed to have been
Weakened as "a result. Otherwise there
was no change in the character OF the
trading whatever The rails cont inued
upward as the industrlals Jagged, but
there was at the same time distinct
slowing down in the upward movement
IN the better grade of stocks
There was very little in the way of
news to influence the market one way
or the other. that is 10 say there was
mo indication that the steel people were
ready to announce their price reduc-
lions. The Mercer and Locomobile COM
panies were added to the long list Of
companies that had reduced their prices,
and the Lee Tire and Rubber Company
made an announcement of the first re-
duction that has occurred in the rub
Der and tire industry. These items.
| however, were offest as market influ-
ences by the indefinite postponement OF
| the British miners strike. which was
Immediately felt In the foreign exchange
markets, and by the statement put out
! by the president of the Goodyear COM
pany concerning its financial position.
! There had been grave rumors all week
! IN the financial community concerning
mat company, and the statement set
TO rest all reports of the possibility of
another receivership in the rubber in
! dustry.
1t was noticeable yesterday that the
motor stocks did not go down with the
rest of the market because of the very
general opinion expressed in brokerag e
house circles that the selling of the
motors had been overdone that they
RAD. in other words. discounted the
worst part of the price reductions. on
the other hand. there was a very bad
break in the sugars. which carried them
down TO new lows for the year, and con-
tinued drives at the steels and eauip-
satisfied that the equipments or steels
Fave discounted the reduction in prices
that Is supposed to be coming from the
independents. The equipments, like the
steels. were constantly under pressure.
and Baldwin's response to the announce
ment of new locomotive order was only
slight rally. The rails were in a class
by themselves, as they have been all
along. They went up consistently all
cay, but toward the closing some Of
those issues appeared to have been over
bought. just in the same manner as the
.ndustrals seemed TO have beer over
sold.
The money market did not get above
per cent, as was the case on Thursday.
The renewal rate was : per cent. and
the high for the day s, notwithstanding
the fact that there was considerable cali
ing of loans and that the demand for
money was considerably larger than on
! the previous day. 1t is understood. how
ever, that not much money was called by
local banks, but that the greater part Of
the loans called was for the account of
Canadian banks. The furry in money
was due, just as /. was on the preceding
day, TO Government Withdrawals and to
the payment of the first of the month
interest and dividend disbursements.
But even though money went up in the
last hour. 1t had no effect on the stock
market trading If the Street had been
I troubled about money there certainly
( would have been no rally in the indus
! trial stocks in the last hour.