The Washington herald., 1920-08-04
SHARP RALLY IN.
LASTHALFH
Market Opens with Rally
Which Tends to Quiet
Entire List.
NEW LOWS FOR YEAR
Money Drops to 6 Per Cent
In Effort to Check
Decline.
NEW LOWS FOR YEAR

New York. Aug. 3.-Announce-
ment that the Polish srmistice had
been broken and that the Boil
shevists were advancing rapidly
again with the determination OF
imposing harsh peace terms on the
battlefield caused another outbreak
of selling in the stock market to-
day after an opening rally had put
p the professionals at ease. The open
ing rally went as high as two points
In some issues and seemed to quiet
down the whole market. Sterling
was extremely weak again.
Money renewed at per cent and
the list held steady after that. But
when the news came from Poland
selling began with increasing ur-
ssency and by the beginning of the
last hour the market was extremely
weak and active with new low
prices for the year being recorded
in many issues So serious did the
situation suddenly become that the
money rate was dropped to 7 per
cent and finally to per cent in
the hope Of checking the decline.
About the middle of the last hour
the decline was checked and a
. sharp rally was led by United States
Steel which advanced two points
from its new low price of IS Is.
Mexican Petroleum made an abrupt
rise Of six points from it's new low
Of 1885,.
In the afternoon Southern Pacific
and New Haven were leaders. The
buyinE Of both of these stocks was
particularly good. 1t was said that
within a short time news OF great
Importance would be made public
affecting Southern Pacific. Wall
Street is guessing that it has some
Fl. thing to do with segregation of the
oil lands.
One thing that made the Street
apprehensive was the rise of 151s
cents in December wheat on top of
day. This gave the impression that
o the European situation might really
q be bad.
The Street is full of rumors OF
new financing to be done by vari-
Gus companies, but bankers say such
plans will be carried out with ex-
must have the money first.
Cotton oil directors cut of the
common stock dividende. which had
been at per cent rate. The ex-
PLANTATION was that conservatism
= demanded such action.
Motion Picture stocks.
Traders were all day figuring out
how to take advantage of the freight
rates through the market. Morris
Gest's announcement that the in
crease OF passenger rates will kill
of most of the One-night stands
played by actors set a good many
traders to buying stocks of the
moving picture concerns such as Fa-
nous Players and Loews. They ar
gUed that since the theaters would
be a bandOned by the living actors
movies would take their places.
James VI. Dixon. of the Tobacco
Products Company. issued a state
ment to the effect that the tobacco
companies would not increase prices
as a result Of the increased freight
rates. because the companies have
been compelled to use automobiles
and express service for goods that
under the new arrangement it will
% be possible to move on ordinary
freight trains. This is a secret oil
the whole freight situation. Instead
of the railroad rates being an in.
II. creased charge to the public. they
are actually reducing the charge tc
the public by making it possible
to use the freight trains for gen,
eral business
United States Rubber distinguish,
ed itself early by a severe break
to a new low record and this wa;
followed by a collapse in Kelly
Springfield. Copper stocks partici.
pated in the weakness of the day
although they did not share in it!
strength.