The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-27
FINANCIAL NEWS
AND COMMENT
Market Continues to Hold in
the Face of Unfav0rable
News Reports.
INDUSTRIALS ARE HEAVY
Money Is Still Tight, With
Higher Renewals and
New Loans 10 Per Cent.
INDUSTRIALS ARE HEAVY

Interest in yesterdays session OF the
stock market was divided between the
expectations OF favorable quarterly
earning statement from the Steel Cor
poration after the closing and several
further unfavorable developments In the
trade situation. The Central Leather
statement for the last three months,
which was put out, was even more I'M
favorable than the most pessimistic han
expected, and American Hide and
Leather's quarterly was not much bet
ter although the deficit OF the latter
was not marked enough to influence it's
directors to reduce the dividend on its
preferred The statements, neverthe .
less, coming on top Of the passing or
the Coca-Cola dividend on Monday.
served again to bring to the attention
of the financial community the unfav-
orable conditions which prevail in gem
eral business. The stock market how
ever. faced those developments in n
fairly satisfactory manner. and al
tough prices did not go up II was only
IN special instances that they declined
tn. market was perhaps too much in
teresS,d in the Steel statement to give
other developments the attention which
they Slight have attracted under ordi-
nary circumstances. The Steel state .
ment .tself was everything that had
been expected and undoubtedly would
have proved n very formidable answer
10 the bear contingent If the Street had
not been convinced that steel prices
must come down, and, furthermore, II IL
had not been for the fact that the price
situation was rapidly reducing the un-
filled orders which the Steel Corpora
ton as well as independents had on
their books The Steel statement was
regarded, therefore, az more of ques-
ton OF past performances than 1t was
Gf indicating what the future holds
forth AS has been pointed out repeat
eddy, the real indication OF what is taxi
ing place in the steel trade is shown In
the untitled orders rather than in earn
inge II was significant, perhaps. that
the market should hold so well in the
face OF the overwhelming news. but
WHISTLER or not the market holds the
fact is that most market observers have
given up the idea that there Is going to
be any prediction rally such as has
been widely advertised.
Where there was any real selling
pressure IL was confined to stocks known
to be in a weak technical position or
stocks In which buying is taking place
only on a scale down. The one excep-
ton to that rule was General Motors.
which came within less than a point of
eoualling It's old low of last month. The
selling Of that stock was very persistent
and Il closed virtually at the bottom.
The leading stocks of the type OF steel
and Baldwin continued to fiuctuate in
tho limits Of their trading area. 1t
would have been very difficult thins
indeed TO have cleared a clean point In
any OF these stocks with commission
The oil stocks were rather exceptions 10
the rule. nasmuch as the move in
standard oil shares tended to help these
Issues But the motor shares were
weak and inclined TO sag. The special
ties also sold off, with Coca-Cola going
TO a new low record at the outset on
the passing of its dividend. Inc
leather stocks were weak. following the
publication Of their quarterly earning
statements. m
The money situation was still tight,
with a higher renewal rate at the outset
and with new loans being made as nigh
as 10 per cent. In the last hour. That
the market Is in for period or several
davs OF money stringency was indicateu
after the closing. when It was announced
that there would be Withdrawals aggre-
eating s16,00O,0O0 again tomorrow,
making approximately s44,o0o,0OO in all
this week. This means. In short that
the banks will have to make prepara-
lions to-day for these Withdrawals ana
tbat money will continue tight at least
for another day. Furthermore, follow
inc these withdra walls. the banks VIII
have 10 begin preparations for the usual
monthly interest and dividend dtsburse-
ments. which will prolong the period OF
tight money until well after the peglh-
ntrp oP the new month.