Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-02
TONE OF MARKET
MUCH IMPROVED
Trend Of Prices Showed Line Of
Least Resistance Was
Upward

New York. July 2.-The New York
Evening Suns closing financial review
today says:
The stock market. which all week
has been giving indications that stocks
were in strong hands by ignoring ex.
CPsSively high money rates, showed
plainly enough today that its line of
least resistance was upward. On n
volume Of trading somewhat above the
recent average the whole list climbed
steadily higher.
There was nothing spectacular about
tho movement. although the buying Of
individual shares displayed more vitally
than infscvcral weeks. Whereas for the
last fortnight traders have been con-
tent to absorb stocks without attracting
any attention. pools in many Of the
spcciatics were sufficiently confident
Of the outlook to attempt marking up
their favoritcs. But the most impressive
feature of the trading was the breadth
Of tho huying. which. although still in
light volume. included all of the i'm
rortant groups. Representative steel.
oil. motor. rail and equipment shares
were all strong.
Call loans renewed at 10 per cent,
but the market paid no attention to
this. due 60 the general belief that
before another week had elapsed none
tary conditions would be more favora :
bic. Given easy money the speculative
element was unable to foresee anything
in the way Of rising prises, the con :
tcution of the bulls being that such
movement vii be based on an early
increase in railroad freight rates, sat
igfnrtorv crops and the chances of q
| Republican victory at the polls next
| fall. ,,
I,ittlc or no news Of direct market
hearing developed during the day. One
| from which did attract considerable at
tcntion however. was the statement
contained in the monthly bulletin of n
loading Wall street bank to tho effect
| that .'thp general world situation is not
favorable either to rapid decline of
prices or to a prolonged industrial de-
preston. .r
closed for the next three days. STOCKS
werc bid for with more open commence
than in many weeks. AS 1t became III :
Crcasingly evident to outsiders that
nriccS were definitely moving forward
| increased buying was attracted ana tne
movement gained strong momentum WIFI
the progress Of the session
The failure of call loans. to advance
above the 10 per cent lever stlhiula'tu
the market n great deal ana wnen IL,
the carly afternoon the rate droppeu
first to 0 and then per cent, puSins
became vigorous sending prices up 10
new highs for the day.
Net gains of to > points were com :
mon throughout the list and many STOCKS
did better than this. Baldwin crossed
121. Strombcrg Carburetor was more
than 4 points higher at 1872; \aha ,
dunn Corporation at w was some
noints higher. while General Tank Car
rose more than I points to above To-
Npyican Petroleum and Pan American
werc nrominent as we're Pierce Arrow,
Continental Can. Marine preferred and
Republic Steel.
The action Of the rails was particu ,
larly gratifying. both the nondlvideno
and standard properties rctiectinG quiet
absorption. This group was much more
active than it has been in long time,
American WOollcn was strong around
0S although the Company's mills VII
hc closed down completely on July II
for an indefinite period owing to cur
tailmcnt of orders.
The weekly statement of the Bank Of
England disclosed surprisingly Sharl
drCD in its reserve ratio from l1f= pei
cent last week to $40 per cent proba
bly a new low record. The only oX'
Tanation for this was that the return
iofcctcd midycar financing and win
dow. dressing" This also accounted
for other large changes, there being al
increase Of f4.N17 900 in CircuIatiou' az
, incrra,c Of f57, ,402 900 in private de
mo.itS aud gain Of f2".o4"'ooo II
iolpS. The local hank statements TIM
week viii also undoubtedly show S"m
wide changes due to tho same reasons