Evening star., 1920-03-19
VERY STRONG AND
SOME REALIZING
By STUART =. WEST,

peCleu dieet It's "iolent and extensive
advance. was called upon to take
some very heavy profit-taking sales
At times this selling produced a good
deal Of irregularity among the specu-
latfve leaders. But there was no
doubt about the ability of the market
to absorb all offerings. Where real
check the buying movement shifted
easily into new directions. There
were more points of strength than of
weakness. The strong upward ten
dency of prices. the confidence of
speculative pools and the increasing
participation of the outside public
were all of them features that were
unQueStionable.
The principal development in the
outside situation was fresh and
very striking forward movement in
sterling exchange. Sight drafts on
London by early afternoon had swung
across $50, which meant a gain of
over cents in the pound from the
close last night and or some - cents
from the low of the reaction which
followed the first great upward push
In the early part of the month.
Look for London Gold.
Nothing further was said on the
subject of gold imports. but in view
OF this new advance in sterling all
That London in the course of the
next few months will make large
transfers of the precious metal to
this country, that this will go far to-
ward making up the recent drain from
South America and Japan, and that
thereby an entire change in the out
look for home bank reserves is effect
ed are now things which can be
counted upon with much assurance.
The loosening for the first time
IN three months of the time money
supply is the most important indica-
ton that We have yet had of the turn
for the better in the credit situation
But, as always, the stock market is
outstripping the money market in an
tcipating the full reflection of the
change in the weekly reports of the
federal reserve banks.
Credit Troubles Abating.
Inasmuch as the credit troubles
were the principal reason for the
prolonged decline beginning in No
vember and lasting, with only occa-
sional Interruptions, until the end of
February. it is entirely logical that
the removal of this barrier partially
now. but likely to be more complete
soon. should be strongly reflected as
it has been during the last week on
>he side of rising prices.
There was weakness again in some
of the 1ow-priced oils. which was the
more impressive in view of the
strength of the standard members of
the group like Mexican Petroleum,
Pah-American and Royal Dutch
3tocks like Republic SteeIsor Baldwin.
Bethlehem B and Lackawanna natu-
rally felt the removal of the support
from the short interest, which had
been driven in yesterday. But against
this many new leaders were taken up.
American Lfnseed.
American Linseed has been running
in to a good deal of stock every time !;
recently it has sold up to 84A. Pre-
vious to today it had not enjoyed any.
thing like it's share in the general up
ward swing. But this morning. push
ing through IS, it went up very easily.
The stock has been very well bought
for some time past on knowledge of
the new financial plan. RecapitaliZa-
| tion on the basis of three shares of
new stock for one of old is the prin-
cipal feature in this plan, the purpose
OF which ~ to give stockholders a
| share in the accumulated treasury
] assets, and at the same time provide
| the means for taking over the great
| Lever Brothers concern in England.
American Sumatra,
| American Sumatra has already made
good the analysis Of it's position based
| upon its known earnings and assets
| Inc history OF american oumdlrd Is
| that it always has been unuuiy sus-
pected. and, therefore, in bear mar
kets has sold at prices ridiculouSly
out of line with its dividend distribu-
tfon. But conversely in bull Markets
| when people begin to realize how low
| the stock is in comparison with 9th.
ers on the basis of interest returns
and influential buying gets into 1t. il
shoots up very rapidly. Particularly
IL this the case when the price crosses
ta
| Texas and Pacific.
The sudden run up in Texas and Pa
cific was based on the story often told
and many times repeated of oil on the
company's property. 1t is known that a
strong group has been accommodating the
stock for some time past and this began
| to show today. 1t was said today that
a large well has been brought in on the
property adjacent to the right of way
Of the Texas and Pacific in Louisiana.
Texas and Pacific was one of the specu-
lative leaders in the boom of last fall,
when it sold well above TO-. 1t had a
break of close to 40 points and at is
opening price this morning was not very
far from its low.
American International
The annual report of the American
made public some time next week 1t
is expected that the report will show
a net asset value of the stock Of close
to $115. American International is
expected in many quarters to be one
of tho companies which will declare
q stock dividend. but this is not con-
firmed by any Of the ofiicials. There
is a possibility that the dividend rate
will be raisd, however.
Crucible Steel.
With one stock dividend of so per
cent declared and due to be paid to
the stockholders in April, Wall street
has already begun to wonder when
the next one will be declared and
it's possible size. 1t was learned to-
day from a source which has been
right on the stock in the past that
the next dividend will be 100 per cent,
and that it will be declared soon
after the present one is out of the
way.
Chicago Pneumatic Tool. which is
one of the Schwab group. will report
next week a gross business for 1919
Of $4,000. 900, and will announce that
because of the new money put into
properties an increase of so per cent
in the total business is expected in
1920. The { company made large
charges against earnings last year.
From net earnings. which. after taxes.
amounted to $2.271,214. there was
charged a total of $1,7S2.000. Approx
imately $1,000 900 was charged off
for the total loss of the motor truck
department.