Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-06
GOOD RALLY AFTER
VERY SOFT OPENING
New Low Records and Bet
ter News Create More
Confident Buying.
by STUART p. WEST.

BY STUART p. WEST.
NEW YORK, August S.-The market
finally turned for the better today, out
not until it had gone through another
sinking spell quite as severe as any
previous one In the course OF this de-
cline new low records were made all
through the Industrial list.
There was a lot of liquidation on mar
gin calls sent out after the close last
night. and as always happens Wnere
stocks have to be sold they were pitched
over regardless of the prices that were
to be obtained.
1t took the market the first hour and
a half to absorb this liquidation along
with the heavy offerings for short ac-
count. But by the end of that time
1t had become apparent That tne ouy
ing power had improved and that most
stocks had reached points where Ell
fective resistance was opposed 10 pear
raiding.
The subsequent rally was. of course.
wholly due to short covering, but once
started it proceeded rapidly until the
speculative leaders were up all the way
from a point to three points from the
early low.
Conflicting Stories.
Military reports from the Polish
front were conflicting. The SOVIET
bulletin claimed further gains, While
the accounts from Polish sources
were to the effect that the lines We're
holding and that counter oHenslVes
were making progress.
Much Importance was attached TO
the denial by Premier Lloyd George
of yesterdays sensational newspaper
rumors regarding the mobilization Of
the British fleet and of the planning
of an expeditionary force.
ma .
in banking circles and was reflected
in the exchange market. where ster-
ling, after losing cent ana hall
at the start. rallied very sharply. get
ting up in the afternoon We'll ABOVE
yesterdays final.
The continental exchanges under
went a similar Improvement.
With the European exchanges re-
covering, with call money freely Of
fered at s per cent. and with no fur
Their indications of the calling of
| loans. which had upset things yes
| terday. the surroundings were IA
vorable for an upward turn in stocks.
Ranking Opinion.
A member of the firm of an impor-
| tant Pine street wire house sent out
| the following to his clientele today:
Late yesterday afternoon l had
| a talk with the president of one of
our large trust companies here in New
York He could see no good reason
beyond the fear of the foreign sit
uation-for the heavy selling yester-
day, especially issues that are known
to have value behind them and which
have been well distributed. This is
not only his own personal opinion. but
| it comedies with the views of others
| in the banking crowd here with whom
| the matter has been talked over.
II also saw the vice president and
cashier of one of the large national
| banks. They were both of the opin-
| ion that money for some little time
| to come would not reach an unrea :
sonable rate. In fact. their opinions
seem to be that it will be no higher
! than it has been for the past few
| days.
They were both very enthusiastic
| on the railroad rate increase. believ-
ling this one thing would keep the
market from getting utterly out or
hand.
II then saw a partner in one OF our
large international banking houses.
He was somewhat depressed on the
| ing prices had di scounted much Of the
seri BUSINESS of that situation. He
commented favorably on the way for
eign bonds had stood up in this heavy
| liquidation. showing there must be
| considerable confidence abroad This
man also laid great stress on the rail-
road rate decision and felt that this
| one big. constructive thing would
cause d very active rebound In the
market on any good definite news
from abroad"
Curb Market.
| Movements were highly erratic on
| the curb market. There was a COM
parativeIy steady tone at the open
J ing but after initial advances had
! been established selling pressure de-
veloped from outside sources, as well
! as the professional element. and de-
| Il fo11 ad
( During this weakness losses on
actual transactions extended from
substantial fractions to several
! points, while quotations on some or
! the higher-priced issues. including
! the so-called Standard Oils. were
down as much as points, without
! sales being made.
! Oil stocks were the chief sufferers
| when the market was weak, and 1t
| was considered significant that the
! supply in the higher class of stocks
| was greater than in some time. Mid
! west Refining was down more than
| five points before the turn came and
| others showed losses of several points.
! Simms Petroleum sold down to its
recent lowest on the decline. and
| Dominion also touched it's previous
| low mark.
| Leetone Petroleum held steady
among the owpriced shares on the
| announcement that directors will
| meet Tuesday to declare the mOntniy
dividend.
In the miscellaneous group there
were losses of from fractions to
point before the market recovered
| Retail Candy was down point and
| Indian Packing made a new low. Ma
tional Coal and Ice was heavy on
moderate offerings.
E, Weakness was shown in the min
| ing group for time, with the silver
| stocks in free supply. Bonds were
less active and irregular.
The Bond Market.
Bonds were generally strong today
but the price changes included enough
little declines to warrant the move
ment being described as Irregular
Liberty bonds, which for the last
| week have been moving within mar
rover range than during any similar
lperiod of the year, were SUBSTANTIALLY
unchanged from yesterday The net
fluctuations in the third and 1ourtn
loans for the last seven days alto
gether has been less than SO cents
in the 800 bond. This is important
by contrast with the May decline in
the stock market, when liberty bonds
suffered quite as much as anything
and when there was mucn talk OF
corporations and individuals pressed
for credit throwing out their invest
ments in United States war bonds
Evidently there was very little OF this
selling in the present market.
The foreign government division
showed some ups and some downs on
the day. United Kingdom Ms OF
1929 were slightly higher, while the
going down to SO. Belgian govern
ment 7ks. after going back to yes
terday's low of 97h. became firmer
The Paris 6s were somewhat lower