The New York herald., 1920-01-31
STOCK MARKET
NEWSANDREVIEW
Shares Display Remarkable
Strength in Face of Un-
favorable News.
MOTORS AGAIN A FEATURE
Several Issues Advanced at Times to
New High Levels for the
Movement.

Stocks yesterday presented an anomaly
by displaying remarkable strength in the
face of decidedly unfavorable news. Money
rates were advanced to 20 per cent, the
highest level they had reached since the
Federal Reserve Boards drastic action at
the end OF last year to check the wild bull
market then i'll progress; sterling ex-
change declined to it's lowest mark and
Washington was told not only Of further
delay in connection with the ratifica-
ZION OF peace with Germany. but of the
virtual destruction of the plan, banking
interests here had formulated for an in
ternationaI conference OH the subject Of
credits for American industry's customers
IN Europe. TIE only explanation advanced
for the firmness of the stock market in
such circumstances was an unconfirmed
rumor that the banks had been requested
to increase for stock market purposes the
supply of funds. which. 1t was said. had
declined to 4 level where the conduct OF
legitimate business was almost impossible
According to another theory, the extra
ordinary stpergth was due to a belief that
In view of the near approach of the date
for the payment of income. and Of excess
profits taxes the Supreme Court of the
United States on Monday. prior to taking
another recess. would render its decision
on sthe taxability of stock dividends The
consensus of the best legal authorities is
that the decision will be favorable. AS II
TO support that theory, the greatest
strength was shown by the shares OF COR
4, IL
lated enormous profits during the war
time and which are repaired TO distribute
them among stockholders as soon as the
taxation problem has been solved
Although. as before. said stocks display yed
remarkable strength in the circumstances
the volume Of business diminished asI
compared with that of Thursday. The
total turnover scarcely exceeded half a.
million shares for the full five hours
Speculation was restricted almost entirely
20 professionals. man of whom, ranged
on the side of depression. became alarmed
by the manner in which stocks resisted
attacks and sought to cover their commit
ments. Baldwin Locomotive General
Motors. Crucible Steel. Republic Steel
American Car and Foundry and Virginia
Carolina Chemical were tho features
Baldwin Locomotive reached a new hiShl
level for the movement. United States
Steel was heavy. Some of the larger
transactions on the selling side in that
issue We're executed by brokers who usual
" act for inside interests. That selling
was uneXplanable on the news that thei
corporation had granted an. advance inl
wages which n conservative estimate
will increase operating costs s24. o0.00 this
year, compared with last. The ques-
tlon uppermost in the steel trade is |
whether the corporation will find itself
under the necessity OF advancing prices on
its products. Judge Gary reiterated his
denial that the company contemplates ad-
vances, but his statement did not shut
the door firmly to higher prices The IN
dependents have marked up prices above
the March 81 schedule.
General Motors sold up to 49, new high
level for the movement and the highest
price it has touched since the recapital-
ization plan was announced. An inside
clique in this issue is sometimes aggres-
sive; that may have been the case yes
terday.
In view of the calling of loans in the
last two days and of the high rates for
funds the bank statement today is awaited
with a good deal Of interest.