The Washington herald., 1920-05-20
STOCK MARKET
CLOSES WEAK.
Absence Of Raiding by Pro-
fessionals Conspicuous
During Session.
SHORT INTEREST LARGE
Unsettled Conditions to Be
Expected Until Railroad
Feud Is Settled.

new 1ork. Way lS.-Actlve stocks
declined from to IL points in wan
Street today and closed weak at bot
tom prices. Liberty bond issues
made new low records and showed
but faint rallying power. Trading
was about three times the volume
of yesterday and there was a con-
spieuous absence of raidIng by pro-
fessionals. Some Of the selling was
liquidation for the account of i'm
vestors who are becoming frightened
at the constant marking down of
prices under the threats of the Fed
eral Reserve Board, Prohteering
manufacturers and speculators in
commodities, are being denied fur
ther accommodation at the banks
and are faced with the necessity of
selling either their Investments or
their boards of goods. Because of
railroad conditions they cannot get
their goods to market so they are
selling bonds. -
washfnston Reports FavorabIy.
From Washington csme optimistic
reassurancesf that the credit situa-
tion would speedily be righted.
That was equivalent to saying that
the business panic for which the
politicians and the credit trust have
worked so hard the last six months
Is about to become a TACT.
Technically the stock market is in
q. strong position for brokers' loans
are very small. The short interest
Is large and in many cases insiders
have been buying their own stocks
In large volume. The fact that Lib
erty bonds are selling on an invest
ment basis that brings them into
market competition with the best
Of the private securities makes It
dihicult to check the selling of other
securities by the public. The people
believe that the liberty issues will
recover first and that IL they do not
recover nothing will.
OIL.
1t was stated that the increased
tax levied by Carranza on the oil
industry would not be collected. Un-
der normal circumstances this news
would have put Mexican Petroleum
up 10 or 20 points But, instead of
rising. the stock broke Is points
and closed at the low figure.
This weakness of the oil shares
was disconcerting, for conditions
were never so favorable for the in
, dustry. The freight blockade has
persuaded many manufacturers to
turn fromNeosi to fuel oil. a
Liberty Bonds 8
There waA a report that there is
a general movement among bankers
to compel business men who have
been carrying Liberty bonds on bor-
rowed money to take them up or
sell them. This is causing whole
sale ruination of persons who obey
ed the government injunction to buy
| all the bonds they could and then
borrow money to buy more.
The Foreign situation.
London was in trouble today also,
for stock prices were falling there.
Japan was also disturbed. Europe
seems to be shocked that the scheme
to unload the war debts of the allies
on the United States is not received
favorably here.
RaIIroad situation n Serious Draw
back.
The ultimatum issued from
Washington after the banking con-
ference promises to create havoc in
all business. Credit is to be cur
| tailed at once. Profiteers are to be
| compelled to sell their boarded
goods. II the railroads were in
free operation so that commodities
could be moved from one market
to another that would be a good
policy. But supposing a profiteer is
penitent and anxious to sell mis-
q goods, how can he do it with such
a congestion Of freight? There are
plenty Of customers and there is a
congestion of supplies, but the sup
plies cannot be put in contact with
the customers. So the result is that
the banker is standing the business
man up in the corner and beating
him to death. 1t is a fine bit OF
l Itheatticals but 1t does not debate.
There can be no relief until the
wages of the railroad men are ad-
vanced and the roads cannot do
that until rates are raised. The re-
sponsibilfty rests on the Interstate
Commerce Commission. The bank
| .rs IN selecting this particular time
10 punish the prohteers are going
10 ruin scores OF innocent business
Il -