The Washington herald., 1920-04-10
STOCKS WEAK
At THECLOSE
Heavy Profit Taking Caused
By Advance in Money
Weakens Whole List.
POOLS STILL ACTIVE
Sentiment Not Cheerful as
Street Waits for Federal
Reserve Announcement.
POOLS STILL ACTIVE

New York, April s.-A concerted
bear drive shortly after the opening
OF today's stock market resulted IN
a temporary setback in values, but
the leaders were soon taken in
hand by various pools. and a contin-
uation of the upward swing was
generally noticeable throughout the
list. Shortly before the close, how
ever, heavy profit taking, on the
advance in call money to s per cent,
had a decided effoct and many is
sues displayed distinct weakness at
the close.
Sentiment Becomes Uncertain.
p On the surface sentiment seems
to have changed somewhat over
yesterdays generally cheerful feel
Ing. While 1t is felt that Morgan
and many other leading banking
firms, being encouraged by the way
In which the Pennsylvania bond flo-
tation was absorbed, will shortly
bring out additional new financing
of large proportions, and that the
market will have to be kept at a
high pace of activity on the upturn
for these now fiotations to be sue
cessful, Indications clearly point to
DEVELOPMENTS of a character un-
favorable to further wild specula-
tion.
Reserve Board May Spring Surprise.
Advices from Washington are to
the effect that the Federal Reserve
Board will make an important an
nouncement tomorrow. Governors
from all Federal Reserve centers
have been in conference the past
week, and during this conference, IL
is understood, all important matters
concerning speculation, initiation
and profiteering were taken up and
a rigid policy adopted to eliminate
the situation 1t is felt that the
Reserve Board. in order to check
the interior speculation, will adopt
q running scale of discount and re-
discount interest rates, running as
high as IL or IL per cent. according
to the purpose and size of the loan
requested. II such action is really
contemplated, the result can only
mean drastic checking methods on
Wall Street speculative activities.
Unloading Process Under Way.
1t is pointed out that even should
the market continue upward for the
next week or two, this state of af-
fairs would exist solely for the pur-
pose of permitting certain large In
terests to iquidate their holdings.
The feeling is that liquidation of no
small proportions has been going
on for the past two or three weeks,
so-caIled insiders getting rid of,
their stocks every time the market
was strong enough to absorb any
great volume.
GsneIono Cutting Talk Continues
Talk of melon" cutting by vari-
Gus companies continues. and IT
seems to be the general belief that
action on some of the corporations
will take place shortly. American
Car & Foundry and Pressed Steel
Car, in the equipment group, are
picked as possible stock dividend
distributors Also Chicago Pneu-
matte Tool and worthington Pump.
In the case of the former company,
it Is understood that directors in
tend authorizing an increase in
stock of some 65 per cent.
BALDWIN and Pennsylvania
From sources well informed 1t is
learned that the passing of control
of Baldwin Locomotive to Pennsyl-
vania Is not an impossibility. 1t is
said that Pennsylvania interests
have been quietly accommodating
Baldwin for sonre time past, and
that an announcement that 1t had
secured a controlling interest would
not be surprising. That Baldwin
would make a profitable unit to the
Pennsylvania goes without saying,
but up until the present time there
has been no inkling of any such ac-
ton being contemplated. Naturally,
coming at a time when the pool in
Baldwin Is working for very much
higher quotations, the rumor Is not
taken seriously. Baldwin has whip
sawed both long and short traders
so many times in the past that they
are becoming skeptical of any "im-
portant developments taking place
in the company's affairs"
Additional Gold
An additional s11.00o,000 in gold Is
expected late today or early tomor-
row. This element, however. seems
to have passed any semblance of i'm
portance either way. AS most of
this gold will be reshipped to South
America, little attention is being
paid to the movement.