Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-06
PUBLIC IS WATCHING
/ ACTION IN MARKET
Wire House Offices Crowded
With SoId-Out Traders.
Local Stocks.

Offices of Washington commission
and brokerage houses are crowded
again with close observers of the
existing conditions in the New York
stock market. Here and there they
are placing orders in picked stocks,
but no real buying movement has
started as yet.
Interviews with brokers. members
of the New York exchange. bankers
and others bring to the front the
fact that present conditions. long
for declining prices. without any
thing approaching rally. There
have been a very few short recov-
cries. but they were shortlived and
Ordinarily the shake-out lasts a
few days. and then the rebound
comes. but this time it has been a
case of months of steady recession
The Federal Reserve Board may con-
graduate itself on the liquidation of
points, in some cases more. have been
sufficient to force the borrower to
Gquidate.
1t has not been market for spe
cializing. The good stocks. shares in
corporations managed by the most
conservative men. stocks of corpora
tons of comparatively recent organi-
cation on which 500 a share was paid
in in cash. have gone with the purely
speculative issues that have been
given less consideration in market
dom.
If the loans on Wall street were re-
duced $1,000, 0OO. 900 last year. they
must be far below the $500, 100000
mark now. +.
Caused by Tight Money.
The decline for several months was
unquestionably caused by tight
money. and the public efforts for de-
f;ation engineered by the Federal Re
serve Board.
Aggravated Liquidation of the char
acter noted during the last two
weeks has been the direct result OF
the European situation and the fear
of another great war on smaller
scale than the worlds contest. with
threatening to cause uneasiness
among the financial men of this coun-
try.
The public. which as rule has been
entirely out of the market for the
better part of the year, is awake
the severe setback. but, while keep
ing close tab of conditions and pick
ing up few desirable stocks now
and then. will not be tempted to
larger operations until there has been
a genuine, tested recovery in market
conditions.
When this time comes the wise ones
will probably have taken in the rip
est melons for their own use. There
seems to be an abundance of call
money and it is not a money market
today.
Local brokers who have been rabid
bears for months were more friendly
to stocks today.
Local Market Affected.
As usual the local market has re-
sponded to the conditions on Wall
street, but not to any appreciate ex-
tent Local stocks did not go up with
the big industrial boom and they have
not come back. But they have set
tied down to lower levels and have
become extremely dull. natural con-
dition of the tight money here, but
more explicitly due to the fact that
the daily records from the market
center. New York, have not been such
as to inspire investors to place funds
in new ventures.
Todays local trading was confined
to a few local shares of Mergenthaier
at 123a4, slight decline; to Washing
ton Gas, at A, and Washington-Vir-
ginia preferred, at I.
Seeking to Avoid Receivership.
Strenuous efforts are being made
by junior security holders of the
Washington-Vi Virginia Railway Com
pdHy 10 uNu d way 10 save the CUT
poration from receivership. Default
on interest on bonds, on interest on
equipment trusts and some pressing
claims are seeking adjustment. in
Guiding the claim of the Washington
Railway and Electric Company for
current furnished by the Potomac
Electric Power Company.
Asks Higher Rates.
The Potomac Electric Light and
Power Company has filed a new plea
for higher rates for service. If grant
ed there would seem to be no question
as to the ability of the Washington
Railway and Electric Company to
maintain its preferred dividend at
the regular > per cent rate.
Bankers Committee to Meet.
The executive committee of the Dis
trict Bankers Association will meet to
consider matters in connection with the
coming American Bankers Association
convention next Wednesday afternoon.
II is expected that the various COM
n1ittees appointed will be ready to make
reports at that time.
IL develops that Loew's Palace The
alter was not only placed at the disposal
OF the District Bankers Association fol
the general sessions of the convention
but that the tender was made to the
District bankers without financial con-
siGeration, and is greatly appreciated.
New Director Elected.
At meeting of the directors of the
American National Bank, held yester-
day afternoon, l.. Perry West was
added to the board.