The Washington herald., 1920-10-10
SECURITY LIST
DUE TO REACT
Professionals Believe Reverse Action
N General List win Occur
IN Week or Ten Days.

Some observers of the stock mar
ket profess to believe that within
the next week or ten days there
may be sharp reaction in the se-
curity list as a whole, but are ad-
vising the purchaNe of stocks on
any substantial rece ssions that may
occur. They insist that the lowest
quotations Of the year already
nave been seen in the motors, SUI
gars, and rails, and that from now
on these stocks may be purchased
without fear of losses by those en-
tertaining such commitments. The
motor situation at the moment an
pears to be at it's worst, and there
probably will be some unsettlement
In the trade during the next few
weeks or possibly after the turn of
the new year, but the largest man
ufacturers of cars entertain conf
dence with respect to the outlook
Tor the coming year. The presiden.
OF one large automobile manufac-
turing concern unhesitatingly pre-
dicted that 1921 would be the larg-
est year ever experienced in the his
tory of his organization. 1t Is
known that similar convictions are
entertained by others actively iden-
tined with the motor trade.
Steels.
From the point of view of the
steel stocks there is little of en-
couragement at the moment, par
ticularly for the Independent COM
panies. because these corporations
have maintained level of prices
considerably higher than that of
the United States Steel Corporation
over period of the past four years
during which time there has been
an unprecedented demand for steel
Now that this demand has subsided
they find themselves in the peculiar
position of being compelled to re-
duce prices to an appreciable eN-
tent in order TO meet the levels Of
the corporation. Therefore, there
has been a considerable amount of
selling of the steel issues, and it is
felt in the best market circles that
the steel issues, as whole, will
sag to lower levels.
Texas & Pacific.
The Texas and Pacific episode
about the middle of the week which
carried the stock down about four
teen points, was thought to have
been a drive of this character, par
lticularly as no one in an official ca
paCity seemed to have any infor-
nation that would warrant the un-
expected and abrupt decline. As q
matter of fact, the argument was
advanced in important quarters
that Texas and Pacific never should
have sold at the high prices estab-
ltshed for the stock during the past
year, and that at current quota
tions ii is about at a point repre-
senting the intrinsic merits back
of the issue. The stock was ad-
yanced on wild reports of the. COM
pany having discovered oil on its
properties, but this proves to have
been a myth. 4 prominent director
of the company in discussing the
situation said that there as yet
had been no talk of a readjustment
plan on the part of the manage
ment of the organization up to the
present time, which puts at rest the
story which gained wide circuia-
tion that there is to be an assess
ment on the stockholders.
Oils.
Oil stocks were irregular for the
most part of the Week, but on all
reactions il was sand that the MeXi-
can Petroleum and Pan American
Petroleum stocks We're we'll bought.
There was considerable bullish talk
relative to Royal Dutch, but the
stocks action marketwise did not
seem to indicate any imminent de-
velopments which might be expect
ed to carry the issue into new high
ground on the present movement.
| There appears to be a growing
feeling in financial quarters that
the better class of oil stocks. as
we'll as the railroad issues, on the
whole, will be among the mark et
l..l d.. - Of thL ir,r