Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-02
MARKET |SSTR0NG,
W|THFA|R GAINS
Good Investment Buying in
Old Favored Industrial
Shares.
BY STUART p. WEST.

BY STUART r. "ESIs
NEW YORK. July 1.-The stock
market today continued to move
along the narrow lines suggested by
hhe generally optimistic sentiment
which has been manifest in COM
mission house circles for the last
few days.
Trading, however, was decidedly
more active and the upward tendency
much more pronounced. One reason
for this which commended itself 10
the habitual trading element was that
stocks bought today did not have
to be paid for until next Tuesday.
This took away the main deterrent
of yesterday and the day before. me
accumulation of industrial STOCKS
which had been going on quietly and
with a desire to attract as little at
into the open. In certain directions
the competition among speculative
buyers was really keen and It was
attended with increasing olHculty
because of the greater reluctance OF
holders to sell.
The buying movement spread gu.
over the entire industrial section, put
it favored the oil shares, the equip
ments, the steels, the shipping stocks
and some of the motors.
Oils Are Favored.
Mexican Petroleum. Pan-American.
Invincible, Middle States and Pure Oil
were the leaders among the oils.
Baldwin Locomotive was the strong
est of the equipments. Vanadlum OF
the steels and Studebaker OF the
motors.
There was revival of interest in
the Can shares. both American and
Food
Products easily recovered the divi-
dend which came off it's price this
morning.
Among specialties international
Harvester was actively bought in an
ticipation of stock dividend.
There was a remarkable rise in the
newly listed General American Tank
Car. and sharp advances in Strom-
berg, Philadelphia company and
Raplogie.
Wool Turns Strong.
It was significant of the funda-
mental change for the better that
American wool not only did not go
down. but was among the strongest
stocks on the list in face or the an
nouncement that more of the COM
pany's mills had been shut down.
Leather stocks and the coppers bore
their share in the general forward
movement, despite the unfavorable
conditions known to exist in their
industries.
Here was very convincing proof of
the truth of the observation which
the market has discounted all the
unfavorable features in the outside
situation and is no longer sensitive
to bad news.
The formation of syndicate to
take over the former French hold
he nd a EY-Qn
cisco 6>per cent income bonds has
drawn attention again to the promis-
ing position of these bonds consider
ed as a speculative investment. Under
government operation the road earn
ed nearly s1,000,OO0 in excess of the
guarantee.
This made Frisco one of the cred
itor roads. Under the provisions of
the transportation act prescribing
rate increases by groups the Frisco
stands to benefit more than the av
erage. The prospects are that earn
ings will run well ahead even of last
years highly favorable showing and
that they will provide the interest on
the incomes several times over. AS
these bonds are selling now on better
than a IL per cent basis and have a
coupon due in the fall. they are being
recommended to those who are look
ing for swaps from low and medium
and which have little prospect of in
creased value.
Investment Buying.
The bond market in general felt to-
day the influence of the semi annual
reinvestment demand much more
noticeably than it had on previous
days. All classes of bonds were
higher. The Belgian 71ss were the
leaders of the government group. At
99k they were up points from the
issue price and 21a from the extreme
low of fortnight ago. The effect of
the midyear interest money was OBJ
servable particularly in the o1d-line
high-grade railway mortgages. the
Atchison general As, which y0ere
heavily dealt in at II, as against a
low early in the week of 70H. This
represented about the average rise
in this class of issues as the result
so far of the reinvestment of money
received in the half-year settle
mentS.
The Money Movement.
The recovery in stocks was held up
for while to see what the money
market would do. But when call
loans, after renewing at 10 per cent.
were gradually marked down until in
the afternoon there was, an abundant
supply pressing upon borrowers at s
per cent it was naturally concluded