The Washington herald., 1920-07-31
UNSTEADY TONE
IN WALLSTREET
Stocks Founder While Op-
posing Elements Lack
Courage to Act.
RUBBER MARKET WEAK
Profit Taking Carries Prices
Down to Previous Close
Or Lower.

New York, July 30.-Stocks were
noundering in Wall Street today for
both bulls and bears lacked courage
to do anything OF Importance. In
the morning everything was strong
under the influence Of the optimism
expressed by Senator Harding and
Of the Federal Reserve Board the
day before. and the expectation of
an early announcement of the rail-
road rates.
Profit taking made its appearance
early in the day following reports
Of financial trouble in Japan and
some statements from Western
bankers to the effect that the
money situation in the agricultural
rySiOns is not as good as it ought
to be. This selling Carried prices
down until most of the stocks sold
as low as the previous close or
lower
Money renewed at 9 per cent and
although loans made today carry
over until Monday the rate did not
advance above that figure. But
- AunOS were ndTu 10 get
The feature of the day was ex-
treme weakness of rubber stocks
and of the crude rubber market.
Stocks closed weak and quiet az
bottom prices.
The weakness in rubber probably
was due to the statement of the
Federal Reserve Board that a great
surplus of finished material is
stored in Ohio.
In, the decline OF today Kelly
Springfield broke 41-2 points. Key
stone Tire points. while U. S.
Rubber declined 1 points to a new
low record for the year. U. S. Rub
Der declined thus, although in the
first six months of this year it
earned more money than it made
in all of last year.
Boschc Magnetic and Stromberg
both started out bravely in the
morning for the shorts are becom-
ing restless, knowing that they may
have dif1culty in covering. But
when the rubber stocks turned
weak these two issues reacted
along with them. The automobile
stocks were also weak with the
IUbbers. The people seem to think
that there must be a reduction in
prices for the whole automobile in
dustry.
Pessimistic Report from West.
A Minneapolis banker was report
I'd as saying that the bankers of
the Northwestern States have $780,
100000 still tied up in last years
wheat. He says this fact will make
II difficult to finance the new crop,
especially as wheat must now be
hQutdabed on rapidly falling
market Threshing reports from
the winter wheat belt show good
returns. There is no longer any
doubt about the excellence of the
wheat crop this year
The United States government
will make a report Monday on the
condition of cotton as of July 25
Experts said they thought the con-
ditiOH would be about rs. as com
pared with 7O.7 as of June 25. The
Improvement is particularly mate
rial in Texas. which is the great
lest cotton producer Of the world.
and for that reason the supply of
the commodity this year will be
great enough for the whole world.
The present price of options looks
recklessly high in view of this crop
forecast.
Rumors of German Loan.
Somebody started a report that
New York bankers had agreed to
make an important loan to Ger
many. The bankers supposed to be
interested refused to confirm this
report. The report is not believed
to be true. because If America were
90 extend such . loan it would be
the equivalent Of underwriting the
indemnity Germany is to pay to the
other allies. Existence of the loan
might be very embarrassing in the
event of Germany's inability or re-
Iusal to pay when due. The max
ing of such a loan would be an in
ternational ENHANCEMENT that even
the present government would for
Did
Japanese Situation.
Conditions in Japan were re-
ported very bad again, and because
Of the heavy trade that has de-
vclOped between that country and
the United States.l Wall Street ex-
pccted a reflection in the stock
market Of this fresh outbreak of
financial trouble.
Many are the confidential reports
from Washington to the effect that
the Interstate Commerce Commits
sion has completed It's railroad rate
decision and will make it public in
about a week. The amount of in
crease given in the reports that
claim to be trustworthy is $780,
100000. which is almost what the
roads demanded. The buying of
railroad stocks today reflected con-
fdence of Wall Street traders in
the correctness of this report. St
Louis and Southwestern was par
ticularly strong. Reading did not
improve much and Atchison became
active only to record losses
Sugar and the near sugar stocks
were heavy but inactive. losses