The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-15
FINANCIAL NEWS
AND COMMENT
Rise in Money Rates C0ntin-
ues to Restrict Operations
in Stock Market.
STANDARD ISSUES STRONG
Equipment, Motors and Steels
Show Special Strength and
Rails Are Quiet.

The insistent demand for money in
cident to extensive shifting of Govern
ment funds to-day coupled with the
further demand for money to meet the
maturing Anglo-French loan continued
to restrict operations on the Stock En-
change yesterday. The renewal rate.
which had been advanced on the pre-
ceding day to per cent, was advanced
still further to 3 per cent. yesterday.
but in the face of this the market again
gave a remarkably good account of it.
self There were still few individual
stocks which went against the general
list because of special considerations.
such for instance as the coppers, which
lad to face another cut in the price of
copper metal but those stocks were ex-
ceptions rather than the general rule.
The majority of standard shares were
very strong, with special strength In
the equipments, motors and steels. 1t
was not the kind of a market that en-
couraged a great deal of outside buy
ing, but it discouraged those who had
been trying to force out further liqul-
dation.
Besides being handicapped by the
money situation, the market had to
face the news that the British miners
had decided to strike tomorrow. The
Dutch situation still exercised a certain
amount of influence on the trading, as
did the Cuban developments. but IL
there was any real alarm over any of
these developments 1t did not manifest
itself in renewed liquidation of stocks.
Rather there was a disposition to be-
lieve that the market had been over
sold; that the rally, which the Street
has been looking forward to for over
election, had begun. The fact that the
\ -
sons had expected In the recent decline
led traders to believe that the Street
would have to go through another pc
Rod of liquidation later on in the year,
but II is the opinion of conservative
interests that this decline cannot pos
sibly occur until the technical position
has been weakened very considerably.
That the technical situation is ex-
tremely strong at the present time is
| illustrated by the persistent strength Of
the speculative leaders. such as the
steels, equipments and motors.
There was some selling of the oils as
we'll as of the coppers under the infiu-
epce of unfavorable trade news, but
those points of weakness were more
than Offset by the strong ones. Tho
equipments, for instance. continued to
improve. Baldwin getting within point
of its high of last month. The dispo-
sition to favor the steels for turn was
also more pronounced, but the real
feature of the day was the motors
There was very sharp squirt in Chand-
Ter, that stock recovering virtually all
the ground that 1t lost in the last down.
ward movement Studebaker also re-
covered along with Chandler, but Gen.
eral Motors still hung behind the rest
Of the list. The rails continued quiet
throughout the day. but they MAIN
tanned a firm undertone. The edge of
the enthusiasm in the rails. however
mas been taken of by the foreign SELL
ing which has been occasioned by the
financial disturbance in Holland. 1t
is understood that there has been very
large liquidation in the rails In the last
| few days from those sources.
Considering the Importance of the
financial transactions which will take
place to-day the money market did very
well yesterday. The renewal rate was
per cent, but the rate for new money
did not get above 10 per cent. at any
stage of the session. The money trans
actions to-day probably will be the
largest of this fall In addition to the
payment of the Anglo-French loan.
which has been a severe strain on the
banks in the last week. the Govern
r,ent will withdraw approximately $751;
ono. 900 from the banks to-day. This
will be nothing more than bookkeep-
ing arrangement. however, as the money
withdrawn will be more than Offset by
payments on maturing certificates OF
Indebtedness totalling 5000. 100000.