The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-26
WATCHFuL WAITING
MOVE BY WILSON
ny BRoADA~ WALL

4 New York, Feb 25.--~Stocks closed
srflve and weak at about the low
prices today after session of great
! nervousness, Report Of the Republic
Iron and Steel company showing less
than 81 so a share earned for 1919 al
though it IL paying dividends at the
rate Of SO naturally caused much
speculation regarding what other indie
! pondents would show. 1t is known that
4 lke I4ackawanna Steel will make a
( rcor report and street rumor rnagni-
! ned everything. On top Of this there
was meeting OF the Federal Reserve
Doard at Washington which WAS fol-
lowed by announcement that the Phil
a@@lphia. and tho New York reserve
banks had reduced the res srount rate
81 government certificates. from AZ to
5 per cent. Wall street insisted that
tiJIg meant another increase OF the
commercial rediscount rate Can money
1rHncd at seven per cent and went to
Gtteen per cent at the close.
Reduction Of the dividends by several
5crrer companies was in line with
bcarish expectations.
In the last few minutes 81 trading
thcre wtr@ a few hundred shares of
t@e rails short contracts covered but the
real spf eulative opera tors were stin
selling wherever firm spot could he
found iu The market These inds-
ia the h.g break two weeks ago and
20 0Tt long Of the market believing that
tFc railroads were in for a big rise. /
when the rails failed, to make any /
Roadway these traders sold out and are |
now going short Of the market again. /
The pubic refuses 70 buy because II
is AFRAID Of another trap like Bopuh- +
lic Iron. The important people have +
J Undated rather freely and are In NJ
trrr", In. %,4w & 1.H Lge--a4 1aag+ unfit
aftcr President WILSON signs the rail- /
road ttli
Early In the day 1t was evident that
money would 60 to higher rates for Il
'sts djNcg}t to secure accommodation. /
'Thr facf that tho hrst payment OF In 4
come taxes is due on March Is is max j
nE the banks careful about lending
2F their roapey for they know there
IS f}i be a nationwide drain on cash re-
sources ia a week or SO.
Eeruhl!c Iron and Steel was the
SO orst performer NJ the day. breaking
mere than nine points from tts close OF
tDo previous dev and more than twelve
points from the high point of the pre-
ceiling session The idea Of n stock
ceiling around 90 that liz earning less
'lar ~ per cent appeals to Wall
street as rather absurd but Mt the
same time traders are afraid to sell II
short. The result ia that liquidation
continued AL day with very little short
n'nnp to help the technical tone OF
me stock
The tact that the Central Leather re-
rnrt shoN ed that the company Ia prob
shiy carrying ~ the neighborhood OF
%" 0oA-o es nj finished materials among
tt* Inventories was another depressing
IT. Nuence for il seemed to confirm the
eDarEes Of profftcering. The company
made ! "a per cent more In 1919 than In
1918. hut that is not considered SO bad
d. Wall stree as Is the fact that the
seems to be carrying SO much
HniEhed material for which there Is a
great demand on the part OF the public.
Very naturally the opposition of
union labor Is the railroad bill caused
some discourae cement in the market
This dfscouragemeute was tho result
aEietly Of the collapse of the bun cam
M En IA railroad stocks that started
20 bravely a few days ago. The cover
ing movement has left the rails in
s. eaker condition than ever and failure
of~1'reFiient Wilson to sign the Cum
uiuq hiH would nnd quick reflection
10 the stock market.