The Washington herald., 1920-09-09
STOCKSSUFFER
AHEAVY CLOSE
Oil Stocks, Led by Mexican
!: Pete, Jared by Pessi-
mistic Report.
SUGARS BEHAVE WELL
Wall Street Believes Income
Tax Payments Next Week
VIII Loosen Money.
SUGARS BEHAVE WELL

New York, Sept S.-Stocks closed
heavy today after a session in
which the sugars alone behaved
well. Money was at per cent all
day, but the Street feared it would
go higher. After the close the gov
eminent crop report was published
estimating the corn crop at $751;
900. 900 bushels. the total wheat
crop at 10000, 900 bushels, and oats
at 1,441. 900, 900 bushels. The ItaI-
ian situation was disconcerting and
traders were not pleased with the
new developments in Mexico, al
though the insiders of the big oil
companies express satisfaction.
The income tax payments are due
next week and Wall street thinks
enough money may be accumulated
in the meantime to ease the call
rate a trife. 1t is reported from
Washington that the Federal Re
serve Bank may let the reserve fall
to 40 per cent in the hope of getting
through the crop-moving season
more easily. The reserve is now
42.5 per cent. The reserve in money
now amounts for the twelve banks
Combined to S2,117,957. This is
'425 per cent of net deposits and
Federal reserve notes combined.
There are only two ways to reduce
it to 40 per cent. 1t can be re-
'duced by a loss of cash or by an
increase of deposits and circula-
.tion.
4. All the sugar stocks were strong
under the leadership of American
Beet Sugar These stocks have
probably overdisCounted the col
lapse of sugar prices.
Mexican Petroleum.
The break in Mexican Petroleum
which was communicated to the
other stocks in the oil list was due
ito reports that the United States
and Mexico would fail to agree
upon terms under which American
capital. could develop Mexican prop
-erties peacefully. The increase OF
THE Mexican Petroleum dividend
was made on Tuesday only because
the insiders of that company were
convinced that business harmony
would prevail between the two
countries. The reports of today did
mot change their opinion.
. They are going further than
that They have bought 100000
more acres of oil leases in Mexico.
-.- Oil men are buying the govern
ment bonds Of the Republic of
Mexico and the railroad stocks.
The seizure in Italy of metal fac
tories by Socialists is not believed
by bankers to be an influence that
need be considerc- by the Local
stock market at this time. Italy
has had such disturbances ever
since the war ended.
o.. Iron and Steel.
O.. Iron authorities said today that
buyers were not so insistent for
early deliveries, evidently believing
that they could get all they wanted
at prices not higher than those OF
to-day. While not expressed in pub
lie. there is a feeling that prices
will be cut materially by the steel
producers as a contribution to the
movement for a reduction in the
cost Of living. other materials are
being held up because steel is not
reduced and a reduction in steer
would break the deadlock in the
building trade.
Crucible Steel was bought in eN-
pectatiOn of another stock dividend
at the next meeting of its directors
The arrival of $4,000, 100000 of
gold. which is expected tomorrow,
will be followed every few days by
other shipments, so that Wall
Street bankers expect the-local
money situation to remain at least
as good as it is during the entire
.CrOp-mOvinE period. If indeed II
does not improve materially. Be
cause Of that several important
pools are preparing for movements
In thnir snnHialtins