The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-14
FINANCIAL NEWS
AND COMMENT
Market Generally Inclines to
Be Strong, but Shows Wait
ing Attitude.
RENEWAL RATE HIGHER
Rails Rally Again and Equip
ment Stocks Continue to
Hold Their Strength.
RENEWAL RATE HIGHER

with the exception OF few special
stocks that behaved rather poorly, yes
terday's stock market gave a fairly good
account of itself But not good deal
of pro gress could be expected OF II. how
ever on account of the uncertainty over
the money situation. The renewal rate
was marked up again at the outset from
~ per cent on Monday to per cent.
and this naturally had a restraining ef-
feet on the whole list although at best
the furry in money is only temporary
Without exception. however, of Central
Leather Coca Cola and others. which
were picked out by the bear contingent
because they looked weaker than other
issues. the general market was inclined
to be strong. The equipment stocks con-
tinued to attract attention for their
strength and the steel shares were also
inclined to do better. but while these
stocks were disposed to rally to the ex-
tent OF half n point or so. 1t was
more of a waiting market In the rest OF
the list than II was an advancing one.
The furry in money also tended to
restrict activity, just as was the case
last week. There were still many spots
apparent in the general market which
appeared to be under pressure OF liqui-
dation. but in the majority OF instances
stocks appeared to have been heavily
oversold. In such cases. in which there
might have been a good rally. the fear
that money might go even higher than
10 per cent. which was the high yester-
day. caused traders to postpone any
thing which they may have had in mind
fta CT nf 6A mn rla a
theory was advanced again in good quar-
tiers that money would be materially
easier after the end of the week and
the payment of the Anglo-French loan.
but the uncertainty as to what may
happen in the meantime was apparently
sufficiently strong to offset this pos
sibility. It was noticeable again, how
ever. that while stocks could not be put
up in face of tight money. there was no
disposition to put them down. that is
to say In so far as leading stocks of the
type of the steels and equipments were
concerned.
The market paid equally as little at
teEtion to the Cuban sugar situation az
to the money market. Likewise the
statement issued by Lackawanna Steel
had no influence on the trading. 1t did
carry that stock up about points from
its early low, but the response was not
what had been expected. probably
because of the showing disclosed
as to the amount Of orders
on the company's books. They
showed a very substantial decrease from
tho preceding quarter. circumstances
which fitted in precisely with Wall
Streets theory that independents are
losing business very rapidly on accoun.
of the difference between the price
schedules OF the independents and the
Steel Corporation. The rails had fur
| Their rally under the leadership of Read
| ing. but that stock disappointed Wall
| Street because 1t did not go through Its
old high, established last week. The
squirt In Reading also carried New York
Central. which owns a large block OF
Reading, up along with it, but that adj
vance was not fully maintained. The
motors were quiet and generally heavy.
The fact that money got up to 10 per
cent yesterday did not reflect any
change in conditions, but merely tenn
porary furry due to the big financial
transactions that are due at the end OF
the week. The banks, as a result or
those transactions. are putting them
selves in shape to meet the payments.
and this was reflected yesterday In con-
siderable calling OF loans. 1t was an
nounced at the Federal Reserve Bank
last night that the Government would
withdraw SCI, 900. 600 from the banks on
Friday. but these Withdrawals. however.
wilt be offset by payments approximate
ing $500, 100000 on maturing certificates
of Indebtedness and Liberty bond inter-
est SO that so far as the money mar
ket Is concerned It will be nothing more
than a bookkeeping transaction.