New-York tribune., 1920-06-20
Stock Market
Holds Steady as
Week Closes
Some Further Covering of
Shorts by Professional
Bears Noted; Weekly Bank
Statements Are Interesting

Professional bear traders who COW
cred q portion OF their short commit
ments late Friday causing a vigorous
recovery in many industrial shares,
We're in the market for part of the
brief two-hour session yesterday, but
their buying operations were not suf-
tclently important to bring about
more than moderate advances in q
few Of the industriaI epecialties. All
IN all. the market showed no signs OF
breaking out Of the stagnation which
has characterized the trading sessions
for several weeks.
Although the market did not show
1t. speculative sentiment at the end
Of the week was cheerful and the mar
ket opinions that have been sent
broadcast over the country to market
operators and investors sound q more
hopeful note. For one thing the pros
poets of large gold imports on British
account are being made much of as a
factor which will likely have an i'm
portant effect upon money rates. Then
the intimation from Washington that
a preliminary ruling on the matter of
higher railroad freight rates night be
handed down around the beginning of
next month has proven a constructive
influence. The hearings in the freight
rate case before tn Interstate Com
merce Commission will be concluded d
this week and naturally the outcome
of the request of the carriers for
higher rates is awaited with great
interest in financial circles. 1t is gen
orally believed the roads will get a
fair increase, but whether the amount
asked will be granted remains to be
seen. In any event it Is pointed out
by those who believe that the railroad
situation is on the mend, the transpor-
tation lines stand to gain great deal
as q result of the hearings.
The most active issue in the market
yesterday was Studebaker, which ad-
vanced point on comparatively heavy
trading. Vanadium also came in foI
attention at the hands Of the specula-
tive element, rising 2 points net. The
strong for more than week on the
talk of a merger, did comparatively
little. There were reports that the ne
gotiations between the three groups in
terested in the projected conso)idat. on
had reached a deadlock, owing TO theil
inability to arrive at a basis satisfac
tory to all at which the stocks of the
different properties would be put into
the new company. Action of the stocks
yesterday indicated no important
change in the situation.
The Federal Reserve Bank of New
York disclosed considerable improve
ment in its position, the ratio of re
serves to deposit and note liabilitie:
rising from 40.6 to APE per cent during
the week. The strengthening of the
| banks reserve standing was due almos
entirely to a reduction in mcmbe
banks borrowings on government wa
paper. The showing of the New Yorl
/ Clearing House banks reflected the ef
fects OF the heavy payments mad
through the banks during the week i,
connection with the June Is operations
Reserves dropped below legal require
ments, creating q deficit of S3,S07,970
whereas week ago there existed
surplus over legal reserve requirement
of S3S.09S,910 The present deficit j,
the Clearing House statement is th'
I first since the week of March 20, wher
the standing Of the banks reflected thu
effects of the heavy March 15 Fedora
tax payments.