The Washington herald., 1920-08-15
MARKET LINED
UP FOR RALLY
Money Remained Compare
lively Easy Throughout
Past Week.
DEMAND Is MODERATE
Professionals Believe Lower
Levels Will Be Estab-
lished Later.

AASAAONA -~<N$As
After the close of business on
Friday the general impression in
Wall Street seemed to be that the
market as a whole was in line for a
substantial rally before any further
recessions take place. although
in the year there probably would
be a lower level Of quotations es-
tablished than have been recorded
at any time this year. Money re-
mained comparatively easy through
out the week. large amounts being
offered each day at 8 per cent with
only q moderate demand being in
evidence. The steel issues Were a
feature Of the late trading on Fri
day, CruCible taking the lead with
a gain of six points for the day.
closing at 1874 United States Steel
common maintained an even stride
throughout the session, closing at
the top of the day. or a small frac-
tiOn under IS. Baldwin LocOmo-
tive, and in fact all of the equip
were active and firm with substan-
tial gains being recorded in this
group.
Motors.
Motor issues also experienced a
liberal upward movement. nOtwith-
standing the unfavura BILE reports
which have continued in circulation
recently relative to the drastic
falling of in business in this line.
General Motors. after selling below
20 early in the week, closed at -,
with a fair demand for the issue
being in evidence at that quota
tiOn. StUdebaker was another fea-
ture in the motor group, but the
Maxwell Motor issues were soft fol-
lowing the announcement of a new
plan OF readjUstment Of the affairs
Of the MaxwelI-Chalmers Company.
Obviously the foreign situation
had much to do with the declines
which have been sustained through
out the list over a period Of the past
few weeks. but the London adv1Ces
on Friday that an armistice had
been arranged acted as a stimulat-
ing influence stock market wise. it
being interpreted as indicating that
the primo difficulties incident to the
Russian-Poish situation will be
overcome without serious difficulty.
This, however. remains to be seen,
and in the event of a turn for the
worse in the foreign situation bank
ers are of the opinion that a further
sharp setback may take place in
the stock market.
Foreign situation.
There are many in Wall Street
V no profess to believe that the for
eiEn situation has had but little to
90 with the declining stock market
which has been underway for sew
eraI weeks past They maintain
that general conditions in this
country have been such as to bring
about such a development. and that
It unquestiOnably would have taken
place even in the absence Of the
unsettlement abroad. Sterling ex-
change naturally declined to con-
siderable extent. this condition be-
ing directly attributable to eondi-
ti0ns On the eastern front. and this
acted as a dIsQUieting stock mar
ket influence. but near the close of
the week there was a substantial
rally, sterling advancing to 1854
for cables and 3.64i= for demand.
Argentine cables advanced to the
highest quotation of the week -
I14.OO.
The speculative element Of the
Street advanced the contention that
an OversOld condition had been Gre
ated through the activities of the
bear crowd, and that a covering of
shorts movement had been respOn-
sible for much of the advance re-
corded during the latter part of the
week This was particularly true.
It was asserted, with respect to
some Of the oil issues. which were
forced down to new low quotations
during the week. Many of the is
sues included in this class declined
TO almost unbelievable quotations.
but at the lower levels established
1t was said excellent buying took
place which brought about a quick
snap back to prices well above the
lowest quotations recorded. The
oil issues were vuInera BILE, particu-
larly as many of the securities of
this class already had declined con-
siderably prior to the final drop of
the past week. which has tended to
unsettIe confidence in the oil list as
a whole.
Rails.
cies that the rails held better com
paratively than any other group of
issues throughout the list, and
were the first to respond in the up
ward movement. which began on
Thursday. Reading was a feature.
advancing to we'll above SS, while
New Haven. Southern Railway,
Northern Pacific, Union Pacific and
Southern Pacific all enjoyed some
Improvement. In view of the large
amounts that it is expected will be
expended on the railroads as a re-
suit Of the freight rate increase. It
fs felt that their efficiency will be
brought up to a point that will in
sure a greater degree of confidence
in the outlook regarding the rail-
road situation, which in turn should
be reflected in railroad securities TO
an appreciable extent. 1t is under
stood that the buying of rails re-
Gently has been of a substantial
characteS, these securities having
gradually passed from weaker to