The Washington herald., 1920-03-05
STOCKSSHOW
SHARPADVANCE.
0yersold Condition and
Better Foreign Outlook
Main Factors.
GOOD BUYING NOTED
Steels and Equipments Said
To Be in Process Of Quiet
( Accumulation.

II New York. March Am advance
sterling today. coupled with
further reports OF gold imports to
be made by England in preparation
for readjusting bond issues sold to
Americans. brought about a sharp
rally In the stock market. Money
was loaned at per cent and was
in more plentiful supply than for
some time. As the stock market has
been absolutely dependent on the
money market this relaxation in
money was instantly felt in prices.
Oils naturally took the leadership
with Mexican Petroleum at the head
of the list. United States Rubber,
Baldwin and finally United States
Steel became very active. The close
was at about the best prices of the
day with industrials materially
higher in every development Even
railroads had some advance.
In one very large commission
house where the normal line of
United States Steel is about 10000
shares, there are only 700 shares
being carried. The big commission
4 houses all run about the same. That
rondition In the United States Steel
>parket means that there is none
the stock afioatg Coupled with
NE good buying for inside account
foted yesterday. il means that quite
sharp advance is possible even
Though the bear market be not con-
cluded. The short interest in some
stocks is so large as to raise the
suspicion that insiders have been
borrowing in order to clean the
market OF their securities. The
large cash balances in the treas
uries of big corporations would
make this very simple operation
and would enable the companies to
get the present profiteering rate for
call money.
A good many stocks have been bor-
rowed by financiers who have not
gone short OF the market. Even
some traders have indulged in this
luxurious form of lending money,
but when traders do it. the brokers
get half the interest. 1t remains to
be 5 cen whether the large short in.
terest is for the account of persons
who have sold the stock short, or
whether it is merely for the account
OF money lenders. If IL is a real
short interest, the gold imports now
in sight may cause a sustained ad-
vance up to the time of paying in
come taxes at least.
In the last two weeks transac-
tions in Baldwin have totaled one
and half times the capital stock.
At the same time the Street has
been full of rumors of tax troubles
1t bears earmarks of the same kind
of an assault as that made on Cru
.ible at the time false information
was handed out to the newspapers
by a prominent trader who was
selling Crucible. Crucible's earn
ings just now are said to be re-
markable.
Baldwin and all the other railroad
equipment companies expect to do
business with the railroads this year
up to the limit of their capacity.
Equipment trust certificates will be
issued by the rails against this new
rolling stock, and such securities
are always considered gilt edged.
Therefore, a ready market will be
found for them. even though the
government bonds go begging. For
that reason the equipment stocks
are finding favor on this rally. In
addition to Baldwin. the leading
ones are American Car and Foun-
dry. American Locomotive, Haskell
Barker, Pressed Seel Car and Rail-
way Steel Spring Company.