The Sun and the New York herald., 1920-07-22
FINANCIAL NEWS
AND COMMENT.
Uncertainty Concerning Rail
Situation Still Acts as Re-
Straining Influence.
MARKET INCLINEs TO SAG
FirmnesS Of Railroad Stocks Is
Feature of Trading-MOney
Rate Unchanged.

The stock market was confronted yes
Efterday by much the same uncertainty
with regard to the railroad strike sltu-
alton as was Tuesdays session. The
union representatives were still In con-
ference in Chicago and reports con-
tinued TO show a good deal Of dissatis-
faction among the rank and file Of the
leaders over the wage award, but there
Is wide difference between processing
disappointment and taking the risk OF
calling a general strike in the face of
PUBLIC disapproval, and Wall Street, as
on the day before, was inclined to take
the optimistic view. The market felt
the restraint Of the uncertainty TO even
more marked degree than on Tuesday,
but there was no real weakness outside
OF the special stocks. The sugar shares
were hammered by the traders because
OF the weakness OF their market position
and there were a few individual issues,
such as National Anilne. which went
down because OF special considerations,
but these were exceptions rather than
the general rule.
The cnly group in which the Street
ventured to back up its judgment that
there would be no strike was the rails,
in which there was a brief Jpurt at the
outset. 1t was a hard job, however, 10
get 4 following even in these stocks and
after half hour or so the traders
gave it up as 4 bad Job. There was
little or no outside following in the mar
ket in any direction. but inasmuch as
there is supposed to be no short interest
whatever in the rails, the buying in the
rails could not be accounted for alto
gether by professionals The upturn in
that direction. therefore, may have been
significant as expressing the best opinion
in the Street as TO the railroad situa-
tion, as 1t is usually found that the best
buying always takes place when the
rank and file Of the Street Is too uncer-
tain about the future to think OF pur-
chasing stocks It was noticeable also
that the best type of railroad shares
such as Union Pacific, Reading, Cana
dian Pacific and some of the other old
line issues participated in the squirt.
The Gays activity, however, was
practically confined to the first two
hours when the demonstration occurred
in the rails. After that the market in
terest died out and stocks were inclined
to sag. A sharp attack on the sugar
shares enlivened an otherwise dull after
noon for the bears. These issues hao
not undergone the same amount OF liqui-
dation as had some industrials anG
rails, and 1t was therefore compare
lively easy matter for traders to get
them down several points before any
real support was encountered. Punta.
Cuba Cane Cuban American and one
or two of the low priced issues bore the
brunt of the selling. A few other spe-
cial issues, such as United Fruit, made
progress in the last hour, but in the
main the rails were the only group that
held up throughout the day. There was.
excellent demand just under the mar
ket all day, particularly for the low
priced issues, which kept the rails firm
even after they had experienced their
initial upturn.
There was no change In the money
situation. Call money renewed and
loaned all day at S per cent. and a good
supply was available. The money mar
ket will be aided further to-day by the
fact that there are to be no Govern
ment Withdrawals. There were no with
drawals on Tuesday either, and this
week is the first in months that the
Government has not drawn consider.
able funds out Of the local banks on one
or both of those days of every week
Inasmuch as the banks have received
no notice of Withdrawals II is assumed
that the Government will not bothe-
the local district for the rest OF the
week at least, which In other words
means that the money market will be
allowed to remain at about the same
figure as yesterday and the day before.
It is not anticipated that 1t will go be-
low per cent, as that would mean
Withdrawals from this district on the
part of out Of town institutions. Wall
Street, however, particularly the stock
market community. will be satisfied IL
II does not go above yesterdays figure.
Sterling exchange did not continue its
decline in spite Of what has been said in
foreign exchange circles about a re-
newed break. It was noticeable, how
ever, that there was no sign OF recovery
after the drop from last weeks high
figure.