The Washington herald., 1920-10-20
MILD ADVANCES.
IN WALLSTREET
Small Gains and Strong Close Re
corded, But Foreign News
Fails to Improve.
CALL MONEY MARKET EASY
Professionals Almost Entirely Re-
sponsible for Light Trading,
Which Lacks Interest.

New York. Oct. 19.-Although
there was no Improvement in the
foreign news and declines were
registered in wheat. corn and provi-
sions, no irregular recovery oc-
CURED in the stock market today.
The close was strong, with most
issues showing small games.
While the government withdrew
$4,000, 900 from the banks in the
second Federal Reserve district and
proposes to withdraw S20rOOO,OOO
additional Thursday. the call money
market ruled easy. After opening
and renewing at Z per cent the rate
eased off to s, where it closed.
Very little attention seemed to be
paid to the British coal strike and
the riots in London. A decline of
nearly two points in demand sterl-
ing also apparently went unnoticed
marketwise.
Trading was on a. reduced scale
and indicated a lack of public inter-
est. Transactions were almost en-
tirely for the account of profess
sionals.
The Money Market.
Important bankers do not look
for any pronounced ease in the
money market until after the first
of the new year when the crops, au-
tumn trade and Christmas business
will, have been financed and the in
terest and dividend disbursement
completed. One significant develop
ment in the money market is that
every new piece of financing an
nOunced by a corporation marks an
other step taken in transferring the
- burden of floating debt from the
banks to the investor. This, in the
opinion of bankers, should grad
ually relieve the credit situation
and release funds that could be
loaned to people having securities
for collateral. The eagerness with
which investment bankers are will
ing to float new foreign municipal
and government offerings in the
United States also demonstrates the
existence of many millions of dol
lars which are seeking investmenr
in the security market.
Sugars
Sugar stocks were a strong fea-
ture, advances being scored in prac-
tically all issues, one reason for
their strength was a rise in the
price of raw sugar. Many sugar in
terests are of the opinion that the
bottom has been reached in the raw
sugar market. The steady decline
was due to competition from Far
Eastern producers.
Dispatches from Washington stat
ing that American bankers would
finance the sugar planters OF Cuba
was also contributing cause for
strength Estimates of the amount
of money to be loaned ranged from
S2O.O0O,OOO to S5O.OOO,OOO. The Bank
Of Cuba is expected to head the
syndicate that will do the new
financing.
A strong bull tip was circulated
throughout the day on United Fruit.
Urgent buying of the issue forced
il up about : points and it closed
within a fraction of the best figure
of the day. Heaviness of the cop
per metal market and an unwilling
ness on the part of the consumers
to make purchases was responsible
for the ease in the copper issues.
COco-COla gained a fraction, not
withstanding that rumOrs stated the
directors proposed cutting the divi-
dend
Foreign Loans
Foreign governments continued to
come to the American money mar
ket TO obtain their financial re-
quiremenJs. Cables from Rio de
Janeiro stated that Brazil was ne
gotiating with American bankers for
a loan. The money. it is believed,
is to be used in financing the coffee
crop. the price of which has re-
emily broken severely.