Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-16
MONEY Stronger,
MARKET VERY THIN
No Power of Absorption
Shown, Though Offerings
Are Not Large.
by STUART p. WEST.

NEW YORK, July 16.-Prices went
lower again on the stock exchange
this morning, and in quite a number
Of instances drew close to their low
points of the year. which as a rule
were made in May. This decline COM
pleted the overthrow of the new
speculative structure built up at the
end of June and in the early part of
July on the theory that the market
would have a month or two of easier
money prior to the crop moving in
which to conduct a moderate bull
campaign.
The upset came with the uncover
ing Of many weak spots in individual
stocks. all of which were related to
unfavorable trade conditions. and 1t
was furthered by the unpleasant dis
covery that money rates were not go
ing to be low as expected.
Money Per Cent.
The renewal on Cal money was
marked up today to 9 per cent, the
highest since just before the Fourth
of July. when the money market was
Experiencing the full force Of the half
year settlement demands.
AS soon as the 9 per cent renewal
was announced selling broke out all
through the list. The market had
started in with a somewhat steadier
tone which it held fairly well through
the first hour. But the stiff money
rate put a darnper upon any tendency
toward recovery.
broke. was not at all heavy. but, as
has been the case in all the down
ward movements Of the year, the dis
concerning feature was the slender
ness of the demand and the inability
OF the market to absorb even small
offerings without a very considerable
recession. 1t was what the profess
SIGNALS call "a very thin market"
Rails suffer Less Severely.
All groups were affected pretty much
alike. The rails suffered less than the
ward swing they had risen less. The
weakest stocks. as a rule, were the
same ones which had led the rise a
fortnight ago-the oils, the independent
steels. the motors and the equipments
There was nothing new in the situation
conditions in money. The decline in
stocks was simply undoing the little
rise at the outset of the month.
The selling represented chiefly the
closing out Of the unsuccessful specula-
tive ventures that were entered upon al
that time.
The Bond Market.
The bond market felt today rather
more than it had previously the de-
preston in stocks. Prices were not
| much changed, to be sure. but the
| upward tendency. which had been
well defined all last week and during
the early part of the week, was checked
and quotations as rule were slight
| ly lower. The liberty third ANS al
$3.50. were off a point and a hall
from their recent high. The bonds
of the fourth loan were down similar
lly.' In the foreign government grouI
the Belgian 7tss were of fraction
but the Swiss government SIS were ir
demand at 1913, which is substantially
theft top.
Railway bonds in the main were &
| bit lower in sympathy with. the heavi
ness in their corresponding stocks
This was true of most of the Baltimore
and Ohio, Atchison, Northern Pacfht
and similar bonds. A. good market wa:
maintained for the St Louis and Sar
Francisco incomes around Az There
| is an excellent inquiry also for the st
Louis and San Francisco prior lien
per cent AS. These bonds are very
close to the rails. In fact. the under
lying mortgages ahead OF them are
| by comparison with the earning power
! Of the road negligible. At present
prices, that is around 81. the straight
| income yield is about tx per cent
while for those holding through to ma
turity in thirty. years the return is
over per cent