Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-05
CLOSING MARKET
DULL AND STRONG
Covering Of Short Contracts
Contributed Largely to the
Further Recovery

A'cW hVVh. JUne 0.--l ne week ClOSeu
with dull but decidedly strong stock
market today. Further covering Of short
contracts contributed largely to the
strong tone and for the higher level Of
quotations. A contributing stimulating
influence was also supplied in the ad.
journment Of Congress today which
promises immunity OF any immediate
menace Of legislation at Washington
that might be disturbing to security
values and the business situation
generally. Then again tie Supreme
Court on Monday holds its last session
of the present term and from then until
October there will be nothing to come
from that high tribunal than can exert
influence either way AMI the market
therefore will be additionally immune
from any unsettling developments from
that quarter.
The bulk Of the business. however,
was supplied by the professional trad. d.
crs and most Of the transactions repre-
sented the familiar week end evening
up operations Of this element. As the
balance Of the commitments leaned
largely on the short side. the covering
found a rather scant supply. and prices
were marked up easily. Interest con
ccntrated principally in the speculative
srecinlties of the industrial division
with the wider gains scored by the equip.
ments, oils and Stoels and tobacco and
paper issues. While some profit taking
was met. the final prices were gener-
ally the best of the day.
On the top OF the ever multiplying
problems with which the market com
munity has been wrestling for so long. a
new worry was added this week to the
long list in the uncertainties OF the
political situation. In other words. Wall
street and its constituents were strongly
reminded that the country was about to
face another exciting presidential cam
paign. Many interesting things, market
wise, have occurred in other presidential
years, as in the summer and fall periods
OF these years developments have fur
nished the nucleus of some of the great
est market swings. Underlying and
fundamental conditions, however. in the
present situation differ so materially
from the ordinary state of affairs usually
encountered during the great political
battles that il is somewhat problemati-
cal as to whether this four year buga
lNoo will enter very largely into the mar :
ket situation. Yet. on the other hand.
the outlook Of the general situation IL
! likely to be radically altered by the
change of complexion in the administra =
tion at Washington.
Just at the moment. on eve Of the
great political conventions. there is nat
uraly a widespread disposition to pro
0eed cautiously. To some extent. such
a policy is voluntary, yet to a larger
degree enforced by the further iimita
tions imposed upon unessential credits
The further pronounced contraction II
the volume of dealings witnessed durin.
the week was striking exemplifcatior
of the utter impossibility Of Wall street
or any other business combination. q
even individual interests, of doing bust
ness without money. Except for a re
duction in brokers' loans there wa
little change in money market condi
tions. On the other hand. most all tn
other Federal Reserve banks followini
New York's lead advanced rediscoun
rates and the general money market wa
fiYmer at almost every important center
The market community may rightly SCI
promise Of bountiful supply OF bull
ish ammunition in the political develop
ments in the next five months. but un
less the purse strings OF the hanks ar
unloosened, there would appear to b
! market enthusiasm.
Chief of the encouraging events il
the securities market was the firm t
strong tone of railroad shares. Espe
cial interest attached to the repur
chase by an international banking hous
of A large block OF St. Louis and Sal
Francisco Railway bonds from tn
French Government. Freight conges
tion at leading railroad terminals mad
additional progress toward improve
ment. but much remains to be accom-
plished in that quarter especially Il
principal points of the steel and iro
industry. Surface wise the price cut
ting campaign seemed to lose some Q
its recent breadth. Reports from in
terror banks identified with importan
lines of manufacture suggested, how
ever, that downward revision Of in
yentories has become more general.