The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-16
FINANCIAL NEWS
AND COMMENT
Advance of Stocks Is Checked
by Profit Taking During
Last Hour.
INDTSTRIALS ARE ACTIVE
Money Stringency Disappears
When Rate Drops and Sup
ply Increases.
INDUSTRIALS ARE ACTIVE

The money stringency which Wall
Street has been going through for the
last week Incident to the redemption OF
the Anglo-French loan and the extensive
shifting of funds for Government pur-
poses did not last through yesterdays
session. as had been expected. The re-
newai rate was fixed al 9 per cent. again
at the outset, but there was very album
dant supply OF new money at that figure.
As soon. therefore. as The main require
ment had been fulfilled tina rate started
downward in the afternoon and before
the session was finished touched per
cent, the lowest 20 which money has
gone since the middle OF September. AS
IS frequently the cara III other Important
Developments II tgas found that the MAJ
ket had discounted the corning Of eaaier
money. Stocks made some response to
the lowering OF the rate Ut the start but
when the real ease ca:le IN tho last hour
the market seemed disposed e treat tho
matter as something that had already
been dealt with.
While the market was going up in the
forenoon. however, there was q very
broad demand FOR all classes OF stocks.
the rails and indrstri3Is included. There
were many Instances of industriale re-
covering their recent declines entirely.
but these gains brought about their own
corrective in the last hour. namely.
profit taking. 1t was solely q question
Of profit taking. however. as the market
paid no attention whatever to outside de-
velopments at any stage OF the trading.
There was O further sharp break In ster-
ling due to the British miners strike.
which had to be calculated on, and an
other crash in tire grain prices al the
outset, but II the market paid any atsen-
ton to anything outside OF the money
market Il was not apparent on the sur
face OF things. That the fear OF further
liquidation from Dutch sources had
pretty we'll subsidized also was Indicated
by the manner In which the foreign
shares snapped back. particularly in the
case OF Royal Dutch. which was one Of
the first stocks to be affected by the
Dutch financial disturbances
AS on the preceding day. the copper
stocks were the single exceptions to the
upward movement. There was another
break in the price of copper metal.
which accounted for the weakness OF
copper. The equipment stocks. on tho
other hand, continued to display
strength. with Baldwin going above Its
high of last month and with excellent
buying In American Locomotive. The
motor shares also continued to advance.
particularly Chandler Motors. and the
last hour. with Mexican Petroleum go
ing above 100 for the first time since
the recovery set in. The tobaccos like
wise continued strong and there were
evidences Of renewed activity in some
Of the pool stocks which recently have
been very quiet. One of the most prom
ment OF these was Industrial Alcohol.
The rails, New York Central in par
ticriar made further progress, but on
~. -Hrf. \. hs,ut ,o~t xf No do-r, u
activity centred IN industrial stocks.
The performance of the money mar
ket was considered remarkable In bank.
ing circles In view OF tho big financial
transactions that occurred during tho
day. In addition TO s6l.000,000 OF
Government Withdrawals the market
had to stand the strain OF the redenp-
ton OF the Anglc-Trench loan. That
these transactions had been adequately
arranged In advance by the banks, how
ever, was very apparent, because thers
was not the slightest disturbance in the
money market from the start IN spite
OF the fact that brokerage houses had
advertised widely that yesterday would
be the tighsest day for money this fall.
As II turned out Il was one OF the easiest
days for money this fall. but bankers
said that although money was easy yes
terday II would be even easier next
week There was q further break In
tho sterling exchange market at the out
set in consequence of the British strike
nows, but the rate steadied In the after
noon and recovered slightly Other ex-
changes were steady and generally
quiet.