Evening star., 1920-11-16
STOCKS DEVELOP
CONFIDENT TONE
Demand Broadens, With Steel
and Southern Pacific Lead
ing Upward Trend.
BY STUART p. WEST.

IVY OPvv0 "a ~ ssSssNs
BY STUART p. WEST.
WALL STREET, New York. Novem-
| ber 1e-There were further signs in
all the markets today that the ten
sion which has gripped them for the
last week or more was subsiding. The
| recovery continued in wheat options
extended to corn, which WAS not the
case yesterday. was very emphatic In
sterling exchange and was much more
general than it had been the pre-
ceding day throughout the share list
The jump in sterling across $3.40
was narticularly striking. This meant
the second rebound in fortnight
from a state Of extreme depression
and the upturn was rapid enough to
lend considerable support to the view
that the sterling market mad struck
bottom and is stabilizing itself around
the nresent level in the same manner
as Il did lower down in the early
part of the year.
Upward Trend at ODenins.
There were very few exceptions to
the upward trend in stocks as II
started with the opening OF business.
Steel common was again the ieader
Of the industrial section' NV men,Ear f,,,Iar
circulation of the story of the deal
for 100000. 900 barrels of gasoline to
the Standard OIL Company OF New
York, to be delivered during the next
year, had the largest advance OF any
thing.
the rails under the same sort of buy
ing that had been noticed saturday
and again yesterday-buying based
upon the belief that Wall street mas
been Understanding the value OF the
oil lands and what this will involve
in the shape of extra market value
for Southern Pacific.
t.erman Credit Negotiations.
1t is understood that a meeting has
Just been held here between high
Washington official and German
American banking interests. at which
the question of the disposition of the
property of German citizens IN TINS
country seuuestrated. during the war
was discussed. The proposition was
considered how to utilize this prop
e,ty as a basis for extending credit
to Germany with the usual proviso
that the money would be spent in this
country for the purchase of American
The estimate OF $500, 100000 as the
value OF German possessions that are
still here-that is, have not been dis
tributed-is considered the absolute
minimum 1t does not include the se-
quosteEed property OF Austrian sub
iects This sum. moreover is mostly
in the form Of cash and American Sc
cu,1ties. SO that it would be readily
negotiable in a loan. The effect OF
an expenditure Of 100000, 900 at this
time for commodities like copper and
cotton and foodstuffs is difficult to
overestimate.
Baldwin Locomotive.
Recent speculative selling of Bald
win Locomotive has been based upon
the notion that the railroad retrench-
mont was a bad sign for the eduip-
ment industry. II was argued that the
roads laying off shopmen was sign
that they had caught up with their
urgent equipment needs.
AS has so often been said. the trans
portation companies were doing their
best to avoid buying new equipment
where it was possible to patch up
the old. But the fact that they were
now cutting down working forces at
the repair shops indicated. so 1t was
claimed, that there was no longer the
necessity that there had been for
overhauling old engines and cars.
This was the talk which accompanied
the drop in Baldwin Locomotive yes
terday below 80. The sharp rally in
the stock today was coincident with
a statement by the Baldwin president
that made things look quite the oppo-
sit, way. He said that present busi-
ness was satisfactory, that the COM
pany was doing all it cared to do and
that it had enough work for six
months ahead
Renewal Rate Drops.
Wall street was not surprised at the
easing in the call loan renewal rate
today. 1t was pretty generally known
that the money brokers had some
money left over after attending to all
the wants of commission houses at
the close OF business last night. and
this, added to new funds which came
in today brought down the loan rate.
Sees Things Changing.
According to an important banking
Interest in position to know init.
mately the Industrial and financial
situation. the present outlook is de-
cidedly optimistic in comparison with
what it has been over the, greater
part Of this year The banks are re-
oorted to have the situation well in
napd. and. according to their balance
sheets, the securities of many lmpor,
tant companies are now selling well
under their tangible worth.
Copper Outlook.
At the end of the war two years ago
the copper surplus in the United states
was close to 1,O00, ,000. 900 pounds This
mas been worked of until. at the pres
ent time. the surplus is in the neigh
borhood OF $50, 900. 900 pounds. made up
of about 50O.8O0.000 pounds OF fenned
copper and the remainder crude. The
copper mines are working at between
IS and SO per cent capacity copper
today is selling at lax cents pound.
the low for several years being - %
cents. The costs are the big thing
now in the copper industry, ana the
biggest item is the price paid iaDor.
The miners today are getting aoouf
2S cents a pound. but the minimum
figure in the contract is IL cents. and
az soon as the mines begin paying
| this figure they will begin to show 9
margin of profit. Another item II
costs is the increased freight rates
The first Of the big companies to cut
prices is the Calumet and Hecia
which las announced Is per cent
| reduction. The other companies are
expected to follow suit.
The position Of the coppers now is
, that unless something along this line
| is done soor several companies Eay
| be forced to else down their mines for
! an indefinite period Gnd reduction
in the dividends OF the copper stocks
+. will be a natural conclusion. AS II
| stands now the whole world fs clamor.
| ing for the metal. but the producers
cannot afford to sell at present prices