Evening star., 1920-03-24
MARKET NERVOUS;
RAILS ARE STEADY
BY STUART p. WEST.
Special Correspondent Of The Sta

Special Correspondent Of The Star.
WALL STREET, NEW YORK,
March 24.-The money market. which
had been a surprise to the bear party
yesterday, was a surprise to the bull
party today. A relaxation In rates
had been looked for following the
cessation of the demand for govern
ment purposes. Instead, while the re-
newal on standing loans remained at 7
per cent the quotation on new ad-
: vances got up by afternoon to 10
per cent. which meant that the money
supply was not as abundant as yes
terday.
There was no particular significance
to this hardening of money. which is
clearly due to temporary conditions
and which does not in any way de-
tract from the tendency toward steady
Improvement, which is manifesting it,
self in the credit situation at large.
But 1t is natural that the bear ele-
nnent, looking for some pretext. should
have fastened upon the 10 per cent
money rate and should have made the
most of the fact that this was quite
the reverse of what the street has
expected.
specialties Bid Up.
At the outset certain individual
stocks were bid up, most Of them
belonging to the high-priced speciality
group. General Motors was rushed
TO it's previous high record. This
was the signal for further urgent
bidding in other high-prtced issues
where there was a short interest out
standing that was having it's own
troubles.
Stocks of this class included Crucible
Steel. Baldwin Locomotive. American
Wool. Republic Steel, Mexican Petro-
leum and Pan-American.
The uprush in these stocks was
hut
hao the effect. which was quite to be
anticipated. of pretty well using up
the remaining short account and
thereby depriving the market OF this
element of support on which the pre-
oeding advance had depended largely.
Weakness Quite Pronounced.
The weakness which developed after
the first hour and became quite pro-
nounced in the early afternoon might
have been ascribed specifically to the
raising of the money rates, but in
reality was due simply to the fact that
the very extensive advance since the
first of the month had reduced the
minimum while it had invited a lot
of weak speculative buying for long
account AS result. the inside posi-
tion had been considerably weakened
and a reaction was demanded on
technical grounds if for no other
reason
The leading speculative issues broke
within one hour from 2 to points,
with more extreme losses in General
Motors and one or two others. This
downward movement, uncovering as
il did a great many stop-loss orders.
was quite precipitate while it lasted.
But there was no suggestion that 1t
was due to any real change in outside
conditions. 1t was simply normal
adjustment of market which had
gone up too fast and in some in
stances at least too far
Burns Brothers.
Burns Brothers continued it's ad-
vance today, the buying being based
on the fact that the company will, in
the near future. declare a stock divi-
dend which may run as high as 20
Der cent. The company has this much
stock in the treasury and IL IS kpown
that the dfrectt4s have dtcussed from
time to time the cutting o. this melon.
The Supreme Court decision declaring
stock dividends non- taxs BILE opened
the way for the directors. who had
been complaining that former extra
dividends had been taxed. Burns
Brothers in 1919 experienced the best
year in its history.
The street had a report that the
.buyisg in Republic Iron and Steel is
for the account of a big Pittsburgh
stesl interest which is seeking to ac-
ou4e the property because of its val
usble iron ore, coal and limestone
p-operties. Republic owns and con-
tolls very extensive iron ore proper.
ies and also owns a large acreage of
coal lands containing coking and
steam coal 1t is mainly because OF
these latter deposits that the YounSs-
town interests have been seeking to
acquire control looking iRto-the fu-
ture, when it is expected that coal
prices will mount much higher.
White Motors.
The White Motors statement soon
to be issued will reveal brilliant
financial condition, according to those
in a position to know. In the past
year the company has invested about
se,000,000 new money in the extension
capital. The new plant facilities
make it possible for the company to
produce trucks on a quantity basis.
Experience has shown the manage
ment that the greatest field is in the
one and two ton trucks and 1t is here
that the largest future business is
expected to develop.
General Motors
While no official denial has been
made from either side regarding
possibIe merger of Stutz Motors with
General Motors, it is reported that
General Motors has no idea of taking
Stutz into the fold. 1t was said today
that instead. Of General Motors TAX
ing over the Stutz ear it was planning
to turn out car of its own to COM
is said, will bave the same racy lines,
of the Stutz and will be sold at
much cheaper figure. The new car
is scheduled to make its appearance