The Washington herald., 1920-04-29
STOCKS RALLY
TTHECLOSE
Government Action IN Steel
Case Hurtful to-
Market.
STERLING IS STRONG
U. S. Steel's Failure to De-
clare Dividend a Dis
appointment.

New York, April as.-After a Sc
we're decline In which nearly all
issues participated today. the stock
market rallied sharply just before
the close Sentiment was pessimis-
tic even with that rally. for IL meant
nothing more than a covering moye-
uent on the part OF the profession
ais. The Street firmly believes that
important labor troubles are at
hand. and that the policy of the
reserve banks in forcing an immedi-
ate curtailment Of credits will bring
about many business failures along
with the lower cost of living that
II is theoretically intended to force.
Money went to 10 per cent. and the
gold imports talked OF yesterday
failed to materialiZe.
Action of the government in ask
ing a rehearing of the Steel case
was hurtful to the market. because
IL boded no good for the proposed
new combination. The steel indus
try has been hard hit by the SWITCH
mems strike
American W0Oiea.
Mexico also furnished its quota OF
dOlefulness- Although the American
woolen report has been common
knowledge for weeks. its actual ap-
pearance has started much talk of
abnormal profits and indirectly IL
hurt the sugar stocks. So the close
was confusing. The short interest
Is Increasing rapidly and with
everybody hopeless. the market Is
getting into shape for a rally OF
Importance
z. g. Steel.
Advice to buy u. g Steel had
come to 50 many persons from such
high authorities that the failure
90 declare a stock dividend was a
severe disappointment. One had
practically been promised by per-
sons who were in position to speak
for the management and who were
understood to be SO speaking. 1t
was not the speculative element
that was misled, but some OF the
most important investment inter-
ests. The excellent report Of earn
ings failed of marked effect because
Il is well known that the industry
Il suffering more from a switch
mems strike than il suffered from
the steel strike. The threat of q
strike of anthracite miners was not
given much publicity. but it seems
that there is considerable reason
for fearing such a development.
II a coal strike really takes place
on top of the decentralization of
railroads. industry will be in Sc
rious condition. That is why Read
ing was sold SO freely in the face
of a possible melon" growing out
of the Supreme Court decision.
Another factor that hurt the
market was expectation that the
exchange would be closed on Sat-.
msIa In L. T. ~
condition that traders will be
afraid to commit themselves over
the holiday. Oficial announcement
was made after the close of busi-
ness that Saturday would be a hol-
iday.
Oils. r.
Middle States Oil got it's so per
cent stock dividend, but declined
more than 2 points in spite Of it.
There was evidence of pool work
In Sinclair. done to help sale of the
new bond issue. With a coal strike
threatened. the outlook for oil
companies is excellent.
The talk of possible exhaustion
of oil supplies is all moonshine.
The only important feature of the
oil. situation just now is the COM
plete command of the worlds oil
that the British have secured. The
American government may in the
near future be compelled to pay
tribute to the British government in
order to get oil enough for its bat
tie ships.
The strength of sterling exchange
was not due so much to any i'm
provement OF the international sit
uation as to a plain covering move
ment on the part of spectators who
had sold sterling short.