New-York tribune., 1920-07-10

Brokers Pay 10 Per Cent
for Call Funds; Rails Get
Into Action With Reading
Leading

| An unexpected rise in call money Il
| 10 per cent In the late trading rathe,
upset the calculations of the specu.
lative element in Wall Street ycster.
day. Yet the stock market gave 8
good account Of itself, forging ahead
further in the recovery. Heavy real.
izing sales were encountered, due tc
the rising rates for money and the
approach of the end Of the week, bu,
on the whole the offerings were well
taken, the market closing somewhaA
irregular, but still maintaining gen.
eral tone Of strength.
After the advance from the beginning
OF the week setback was rather to be
expected, SO that sentiment was little
affected by failure Of the early ad-
vance to hold in many Of the industrial
leaders. It was another session In
which the volume Of activity underwent
expansion. Dealings at the exchange
rose to close to the million share mark
Tor the first time this week.
Call loans renewed at z pef cent
the same rate as on Thursday. Suisse
quently liberal offerings Of call funds
were made at the same rate. However,
the. expanding volume of speculative
activity, combined with heavy end-of-
the-week demands, served to absorb the
available supply at the 9 per cent rate
ana py midday money was up to
per cent. This advance was followed
IN the afternoon by another jump to
and then 10 per cent, which was the
closing rate. The movement in the
money market was interesting and it
Drought straight home to the stock
market following the cold fact that
money situation is still very much un-
settled and susceptible to sudden
changes. Next week, however, a fair
degree OF ease is anticipated. althouph
no one looks for call money to drop
below per cent, especially when COM
mefciai borrowers find it difficult to
cover their needs at 71a and 8 ner cent
IN the stock market many industrial
issues carried into new high ground
Tor this movement, among them beinp
Mexican Petroleum, General Motors
Chicago Pneumatic Tool, Stromberc
Carburetor, Consolidated Textile. In.
ternatlonal Paper and Invincible oil
Houston OIL continued its. wild fight
upward, soaring IS points to 1O8 6nt
suudbsldlng later, closing 13 points up at
oo. doo. In two days this stock has risen
26 points. "' i'se"
The outlook for this seasons cereal
and fodder crops continues bright. Ac.
GEoloing TO the latest bulletin of the
department of Agriculture giving the
condltlon of the growing crops as of
suiy l! the indicated yield Of spring
ana winter wheat combined will run
eo9,UOo,OO0 bushels, against a promise
OF I81,OO0,000 bushels a month ago. and
harvest of 940,987,00O bushels in
l9l9. June was a good month for
winter and spring wheat, both crops
showing substantial betterment As
dor dor corn corn the indicated yield is 2,779,-
oou,uVO bushels. against final yield
OF z,9l7 ,460,O0Q bushels last year. The
ngufes on corn are the first of the
present season. Oats show good
promise. with an indicated yield on
me be- pasls nnn SO Of the July / condition of
ih,oz1,Ooo'ooo bushels, compared with a
harvest OF 1,248,310,00O in 1919.
Nallroad stocks came in for greater
amount Of attention yesterday. It
looked as If the rails were being bid
up TO cover selling operations in a
number Of the industrials. Reading
took the lead, but the whole list was
strong. There is growing feeling that
the rails are bound to do better. The
baltimore. & Ohio earning statement
for May is indicative Of the improve
ment IN railroad operating conditions.
The da4 road increased it's May gross s3,-
So5,o74 to a total of $18,263,118 and
net operating income for the month
totaled $1,566,596, an increase of 81
303, ,263. For the first five months of
the current year the Baltimore & Ohio
shows net operating income of ST .089,-
45S, compared with a deficit Of more
than $5,000,000 in the corresponding
period of 1919