Evening star., 1920-07-13
COAL SITUATION IS
IMPORTANT FACTOR
BX STUART p. WEST,

~" -" ioiNN' July i3.-AltnOugh II
was stated in some of the morning
news reports that the possibility of a
shutdown of steel mills on account Of
the transportation difficulties had
been exaggerated in Yesterdays
market discussion, it was neyerthe-
less. apparent that this was still
very important factor in today.s oper-
ations.
Ihe fact is that the status of
things in the steel trade is a subject
upon which the evidence is very CON
melting, because it depends upon the
Iuei situatlon at the respective plants,
and this differs very widely.
In the Chicago district. where the
Iuel shortage is particularly acute
the Steel mills are operating at only
30 per cent of capacity, and some Of
them are thinking of shutting down
altogether rather than attempting to
continue Tor long period perhaps in
the present restricted wav. If is nm
derstood that furteher east-that is. in
the ONO district-the same conditions
exist.
On the other hand the latest tonnage
neures from Pittsburgh and the sur
that operations there have been
seriously curtailed as yet
Edge OFF Optimism.
For the present, however, the dis
coVery that the scarcity of coal is
doing much more damage to industrial
activity than had been figured upon
up to few days ago. has completely
taken the edge off the optimism which
was so widely prevalent at the close
of last week. This does not mean
that the market is in for a period of
depression. but it does explain why
the greater part of fortnights gains
were lost in the single session of
luctant to rally today.
The market opened higher and steel
common rose at one time nearly
point Baldwin Locomotive rallied
oil shares, especially Mexican re
troieum. Pan American and Royal
Dutch, snapped back from the low
prices of the previous day with
considerable show of vlgor
But this upward movemen. the
maintained and in the afternoon .hs
market lapsed into extreme guinness
with prices sagging OH again
CoaI and the Rails.
Yhe fear often expressed in wan
street these days. but just as oiteh ue
MED, that the steel mills ana o.is iS ha
the basic industry plants Wouiu ~
forced to curtail operations oeGa use ~ he
next few weeks, according to several
sources. in the cutting to the poie ol
Messenger traffic. 1t is said that the
railroads will cut off most OF thelr ';t,,
cess fare trains and will doupie up WI Ml.i,
the other service in order that the hheS
nov he free to move coal to the steer
mills and steel products to the ceh.efs'
where they are most needed
A Technical Reaction.
The selling which came into the
market yesterday and in the carry
trading today was said to De ohiy d
normal reaction due to technlcai con
dit;ons The market moved forward
so fast last week that the snort IN
terest was eliminated and this
hroueht about an overbought condi-
ton where it was easy Tor the oeai
rarty to operate.
one firm which has been par
ticular right on the market .nis
summer sent out the following touaS
before the opening of business: Noth-
ing to fear here. NO more rhan "ea
NAL reaction anywhere. we look LOT
a sharp recovery today and not SIN
gle stock has seen it's highest price
for the month. AS this reaction mas
been based on technical grounds So
tbe recovery should be placed on teen
pical grounds and those stocks Whicn
have had the sharpest decline shouIo
now rally with greatest facility.
The Bond Market.
There were no indications that the
bond market was at all affected by the
causes which were weighing down the
stock market On the contrary, bond
prices in the main were higher
The most remarkable feature was
the continued absorption at new hish
figures of the recent quotations-that
is, of the big bond issues put out dur
ing the last few months.
The Swiss government IS were
freely taken at 1929 which meant
premium of 25s points from the price
at which they were offered TO the
public only week ago.
The Belgian government 712s SOLD
above par for the first time TINS
meant an advance from the, issue
price of nearly three points.
The new Armour ten-year notes,
which are the latest additions to the
market. were also selling today at a
small premium. They were s4H bio,
but with numerous transactions at 80.
At the same time the demand for the
euuipment issues was very keen, with
the Pennsylvania getting up to l02H,
which was within half point OF their
fnn