The Washington herald., 1920-06-27
EXPECT HIGHER
STOCK PRICES
Pools Prepared to Take Ad-
vantage Of Oversold
Condition.
MONEY Is A FACTOR
-Reinvestment of Half-Year
Payments May Also
; Prove Beneficial.
MONEY IS A FACTOR

show any appreciable signs Of pro-
nounced weakness on Thursday
with call money rates ranging at
IA per cent, the remark was made
sin the best banking quarters that
an oversold condition obtained and
that the outlook would appear to
Indicate that on any signs of bet
: terrhent in the money market sit
uation the stock market would ex-
= perience a considerable upward
movement.
Expect Public Interest.
- 1t was intimated in important
= circles that at the lower Levers
which have recently been estab-
lished for many of the leading is
1Fsues on the board there has been a
substantial accumulation of stock
sand the general belief Is that with
1.-The expected easier money market
condition in July there will take
place a renewal of interest in the
market with public participation
for the first time in many months.
The public has refrained from en-
tering the market, having liquidat-
- ed stocks many months ago and 1t
= was said that issues have passed
! from weaker to stronger hands
: preparatory to another distributing
movement when prices have been
forced to levels considerably higher
than those now obtaining.
HaIf-Year Investment Funds.
~ After the July 1 interest and divi-
dend disbursements have been cared
for and the money thus paid out to
investors has again found its way
to the so-called money market
channels, il is felt that the money
: market situation will right itself
and the reinvestment of dividend
and interest funds will play an i'm
portant part in the beginning of
: =readjustment movement in the
stock market. Later in the fall,
however, it is thought funds will
again become tight and some
bankers say they would not be sur
prised IL call rates should advance
= to a point of Is or possibly 20 per
cent In the meantime it also is
regarded as not improbable that
stocks may be marked up and dis
tributed. assuming, of course, that
"a public following has been OBJ
tanned.
Baldwin and CrucibIe.
There was considerable bullish
talk regarding Baldwin Locomotive
: and CrucibIe Steel, both of which
issues displayed a firm tendency
throughout the entire session on
Friday. it being intimated in some
usually well-informed circles that
Zan upward movement Of consider
able proportions will be recorded in
these two stocks within a compar-
atively short time. The business
now being handled by each is re-
ported as of substantial proper
-tions while others of the steel
groups of stocks also were in
favor than for some time
past. There is a feeling, however,
that no definite trend in the STOCK
will have been established
: until after the turn of the month
and the conclusion of Presidential
nomination activities at the Demo-
cratic convention in San Francisco.
Pools Active.
Pool operations in numerous
stocks were in evidence at times
during the week. but up to the
close of business on Friday not
much had been accomplished. The
2 manner in which stocks have held
: in the face of the disquieting
money market conditions which
haveS obtained has been the subject
of quite favorable comment in
prominent banking quarters where
the feeling is entertained that we
are on the eve Of an important up
ward movement generally throagh-
out the list.
Quiet Buying of Rails.
Much interest is being shown in
the outcome of the railroad situa-
tion, particularly with respect to
the freight rate advance and the
wage increase controversy which
are now being actively. considered
zby the special body appointed by
the President and the Interstate
Commerce Commission. Numerous
hearings have been held and it was
: =intimated that a decision might uv
Forthcoming at an early date. Some
railroad men who have been in
: Washington testifying before the
Commerce Commission,
9 however. profess to believe that it
probably will be two or three
weeks at least before formal an
nouncement is made of the findings
of these fwo important groups. A
satisfactory adjustment of the rate
1 and wage situation, it is argued,
would Immediately have a stimulat-
ing influence over stock market
Quotations, and IL is understood
that many have seen fit to pick up
moderate blocks of some of the
leading issues in the belief that a
handsome profit will be scored
later on.
Coppers Neglected.
Copper stocks experienced a |
sinking spell on Friday which was
regarded as of considerable sig ,
: nificance, particularly as 1t took |
place in the face of bettefment
the action of the board of director, |
of the Inspiration Copper Company |
In reducing the dividends from Sc |
to 81 per annum was instrumental |
In bringing about this result. In
view of the comparatively small |
zhuctuation which has been dis
played in copper issues over a con-
siderable period of time the gen.
seral belief Is that there will be no |
pronounced downward movement |
in this group. Motor shares were |
well bought during the week, par
aticularly as they have sustained a !!
considerable loss marketwise dur
Ing the past six months.
: COLUMBIA GRAPHoPHONE.
The Columbia Graphophone Com