New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-07
Rise of Security
Prices Continues as
Market Broadens
Professionals Bid Up Quo
tations on Theory That
Stocks Are Due for an
Upward Move

AS scheduled, security prices leaped
upward yesterday on the New York
Stock Exchange. Traders freely pre-
dicted that they would late last week
and, despite the lack of enthusiasm
over the most recent Federal Reserve
Bank statements, many stocks rose
! from one to three points in some
what broadened market.
To the person who demands q logical
enumeration of causes it is difficult to
explain the present impulse of secu-
rites to rise. But to the observer
who could sense the spirit of the
yesterday that the direction of quota
tons would be upward.
| The nomination Of Governor Cox
per Sc is neither markedly bullish nor
bearish in its influence on business,
which looks forward to the election
Of the Republican nominee. However,
the end Of the deadlock cleared the
atmosphere. which has been sur
charged with the doubts and uncer-
! taintics of politics. The selection of
standard bearer by the Democrats
meant that another of the deterrents
under which dizziness had thrived for
weeks had been removed. Wall Street
considered Cox about as good vote
getter as the Democrats could have
picked. yet the odds quoted we're to l
in favor of Senator Harding.
The optmists regarding stock prices
were encouraged by the influx of ample
supplies of money to the market.
Money at the time of renewing loans
was quoted at 9 per cent and then de-
clined to per cent. The Clearing
House banks. having increased their
rediscounts at the Federal Reserve
Bank, showed a gain in surplus re-
serve, and we're specifically in bet
ter position to lend on Stock Exchange
collateral. Yet the gain in rediscounts
and inf note circulation offered little
encouragement to the heralds Of easy
money, although it was recognized that
expansion was probably due mainly to
payments. The market operators ex-
pect relatively easy conditions for
some weeks, and perhaps tight money
in the fall. In the interim the time
is deemed propitious for bidding up
prices. The spectacle of rising prices
is looked upon by some professionals
as timely way of ending public leth
argy in the market, and it is no secret
that many would like later to unload
their own holdings at higher prices.
Men who trade regularly argue that
the logic of the market in the i'm
mediate future ought to make for
higher prices, because the market has
already passed through the cycle Of
heavy liquidation followed by dull
ness.
Since it was not news of a concrete
character but general market psychol-
ogy which gave the impetus to yester-
days rise, the gain was not limited to
special classes of securities, but was
horizontal, including practically the en-
tire list. MexicaA Petroleum, Pan
American Petroleum, Crucible Steel,
Baldwin Locomotive and General Mo-
tors we're conspicuously dealt in.
Those who wanted stock found it nee
essary to take the initiative in the bid.
ding
In the bond market the same situa-
ton existed. There was heightened
activity and broader market. A syn
dictate began to offer to investors S25,-
100000 Of twenty-year 8 per cent bonds
Of the government of Switzerland at
par, and the response on the first day
was characterized by members of the
syndicate as eminently satisfactory.
Kuhn. Loeb E. Co. yesterday re-
ceived 100000 more Of gold which
had been purchased in the London
open market out Of the current pro-
duction of the Transvaal district The
significance of the consignments-for
there were two----is that they empha-
size the fact that exchange conditions
make it profitable to ship the metal
here instead of to India.