The Washington herald., 1920-02-01
SHORT SELLING
BREAKS STOCKS
Expected Poor Bank State
ment Reason, But Fig
ures Cause Surprise.

New York. Jan. 3l-The bank state
ment was better than expected and
win probably cause a covering move
ment on Monday. This will be so be-
cause the market was broken today
almost entirely by a rumor saying
very bad bank statement would be is
sued The professionals were so sure
of this that they sold stocks up to the
last minute OF trading. The good fig-
ures announced in the bank statement
was a surprise to them
The opening was strong. with Bald
win. General Motors, crucible and the
tire stocks higher. Business was on
a very light scale. and early in the
second hour the rumor Of a bad bank
statement made its appearance. eGn-
eral Motors was broken more than 10
points. Crucible and Chandler 1.
Business was confined almost exclu-
siveIy to these speculative issues. and.
therefore, the market did not get
enough headway to disclose its real
direction
One feature of the day that at
Tacted much attention was the
urength of the railroad list. This
extended to every kind of railroad.
Union Pacific was up a point and a
half and New Haven up two points.
others advanced fractionally. The
movement was supposed to be due to
belief that Congress would finish
he railroad bills in the coming
week. The Cummins bill Is appar-
.ntly to be the dominant factor in
he compromise measure. The new
measure will not be all that is want
ID. but it will be much better than
vas expected.
Professionals told one another that
he rails were being made strong to
hvert attention from the inside SELL
ng of the industrials, but the vol
Ime of business was not sufficient
% justify any such assumption. In
siders are not selling their indus
rials. although they may be neglect
ng to buy more. The annual re-
ports now in course of preparation
ire very embarrassing to the in
Iiders. for according to the figures
he stock market should be buoyant
ind il does not advance. In one COM
pany whose figures were shown in
confidence today the net for 1919 was
more than double the most optimis-
ic forecasts made in Wall Street.
even that stock remains heavy.
Another advance in the price of
automobile tires is scheduled for the
rear future. The result was
trength in the tire stocks. ThSS
Vance is made necessary in part
o.. the increased cost of labor and
MATERIAL.
irrational bankers have sud-
come to realize that the in
-r-s ional loans they were pro-
nG for the United States were
Hhing more than charity. Luigi
5cuolo. an eminent Italian, came
ward yesterday with a sugges-
that Europe quit asking aims
1Id approach American business
ncn on a business basis. He said
.7tt Italy would be the first of the
iu'es to come back" and that
italy would do this without the
humiliation of begging a loan on
charitable basis. He wants nc
pther nation to stand between the
Emitted States business men and the
business men of Italy and urges
prompt measures to that end.
This elimination of the middle
nan is a fight that is being made by
he American farmers also. Theo-
-etically. the middleman is a pro
lucer because he facilitates distri-
mtiOp The farmer imagined that
Ie himself was the only producer
nut that idea was exploded a gener.
.tion ago. Under modern condition!
Il transportation there are toe
many assistant producers under the
Iame of middlemen injected between
he farmer and the consumer.