New-York tribune., 1920-06-10
Stock Market Is
Quiet; Interest
Rates Rise Again
Government Pays Highest
Rate on New Borrowings
Since Civil War Period;
Call Money at 9 Per Cent

Developments outside of the stock
market yesterday were Of far greater
significance than the colorless session
at the exchange. To all intents and
purposes the speculative security mar
drifted sluggishly, price changes were
extremely narrow, professionals ac-
counted for practically all Of the
350,000 shares which changed hands,
and there appeared to be little desire
on the part Of the trading element to
take definite position. Wall Street
continued to focus its attention on the
Chicago convention, and unless all
signs fail will wait for definite de-
velopments in that quarter before add
ing much to its speculative commit
ments.
News that the Treasury Department
plans two new issues of certificates of
indebtedness to raise $400,O0O,0OO on
the highest interest basis that has yet
been paid by the government during
the war period did not come until long
after the market had closed. Here
again is reflection of the changed
complexion Of investment market. The
| Treasury has fixed an interest rate of
OK per cent on one issue which ma
lures, next January, or in about six
June Is, will bear interest at per
cent. These rates represent an ad-
vance OF u to II per cent, respectively,
from the rate at which the last offer
ing was made about a month ago. Not
since the Civil War period has the
government been compelled to pay such
high rates. 1t only goes to emphasize
condition that has been proving more
and more onerous to borrowers. 1t is
nyn1v - H4 k-I
adjustment In outstanding issues of
the government as we'll as fixed in
'terest bearing securities of corpora
tions will likely follow this latest rise
in the rate on certificates.
The fact that the city Of Cleveland
has just had to pay more than $50
per cent on q new issue of serial bonds
offered by the banking syndicate also
Is indicative of the trend in the in
vestment market. Another bit of new
financing announced late yesterday was
that of the Chicago & North Western
Railway, which has sold \to bankers
100000 10-year per cent secured
bonds. On Tuesday the directors of
the road reduced dividends on both the
preferred and common shares because
of lack of cash, due to the fact that
the company has not yet received the
funds due it under the six months
guarantee provided for under the new
transportation act. The new financing
is almost as much of a surprise as was
the reduction in the dividends.
There were a number of strong spots
In the stock market, among them Bald
win Locomotive, which stood out prom
lnently with an advance to a new high
for the current movement American
Car and Foundry was another strong
railway equipment, while in the textile
group American Woolen was feature
on an advance above par. Oils also did
better, as general thing, with Mexi-
can Petroleum and Middle States
among the leaders. In the rails North
ern Pacific and Great Northern pre-
ferred continued under the adverse in
f1uence of the reduction in the Chicago
& Northwestern dividends.
Call money rose again to per cent,
after renewing at T. In the afternoon
the offerings by lending institutions
were somewhat more liberal, and the
rate dropped to per cent at the close.
Weakness of the Far Eastern exchanges
stood out as the principal development
in the foreign exchange market, the
downward movement being due to
further slump in the price of bar sill
yer in London, which pushed the price
here down from S4 to 1914 cents. This
is the lowest silver has touched in
three years. Exchange on London
closed higher yesterday.