The Washington herald., 1920-08-28
STEADY SESSION
IN WALLSTREET.
Net Gains Offset Losses In
Spite Of High Call
Money.
MOTOR STOCKS WEAK
Professionals Hammer Re-
public Which Drives
Down Entire List.
MOTOR STOCKS WEAK

New York. Aug. 27.-Call money
e went to 10 per cent today after re-
newing at s, but in spite of that
more stocks showed net gains than
losses. The gains were not large,
but the fact that there were any
at all under the circumstances is
notable. This is true IN face of the
fact that the Reds apparently have
taken the offensive again in Poland
The charges of Republican cOrrup-
O. tiOn made by Candidate Cox caused
Wall Street to smile, for Cox has
scored the first canard of the cam
paign. Motor stocks were weak
and professionals took advantage
70 Of their weakness to sell others.'
The rails. however. were respect
fully avoided by the traders. Cuba
Cane Sugar was notably weak, but
other sugars were not materially
changed. Pittsburgh Coal and Pond
- Creek attracted attention for their
strength. The market closed in the
midst Of the slight rally following
weakness that had lasted for a
couple OF hours.
Harding Makes Statement.
Il
Reserve Board announced publicly
that there was no discrimination in
making bank loans and the bankers
all FASTENED to bring him up to
date by letting him know the facts.
There has been discrimination of
the most hagrant kind. What the
business world wants is benevolent
discrimination. The business world
wants prOfiteers Disseminated
against and it wants the Federal
Reserve Board to attend to its
sworn duty under the law. There
can be no prOfteering in money
even by the smallest bank without
the consent of the Federal Reserve
Board. The law gives that boar1
absolute control of money down to
the ultimate borrower.
In the first six months of this
a year. the Federal Reserve Bank of
New York earned at the rate of
2O5.6 per cent, and the twelve banks
combined earned at the rate of 1913
per cent. That means total earn
fngs Of Sl2O.OOO,OOO year. The
high rates charged have not check
ed prOhteerinE. because the prof
iteer does net care much about the
rate. since it Injuries his weaker
competitor enough to make every
thing square with him.
High prices. whether for money
or commodities, are useful only to !
. the extent that they inspire the |
production of greater supplies. 5 ICE
the supply of credit is not infiu- |
enced by the interest rate. but is /
dependent entirely upon the will |
inEness of the Federal banks to pur-
chase bills from member banks, the
high rate that has been charged has
. done nothing but damage.
This is the situation to which the |
administration at Washington has |
finally awakened. Knowing that |
the business intrrests of the Coun- /
. try will hold the administration re-
sDOnsible at the November election. /
it is understood that the President I.
is anxious to have something done /
10 stop money profiteering. 1t can
be done easily if he is really sim /
cere. Whether it will do any good .
politically is an open question. 1t
can do very little good in saving
business. for business is on the to- (
bOggan already.
Motor Stocks.
TOdays attack on the motor
stocks was due largely to the re-
Company following so closely after
that Of the Owen Magnetic. When
Republic Motor broke points to-
day on the stock market traders be-
gan watching the news bulletins
carefully TO see what would be an
nounced regarding this company.
but up to the close Of business
nothing had been made public.
II Is believed that there is a sur
plus Of expensive material in the
hands Of motor producers Those !
that have cut prices and have tried
TO unload will probably pull
through Wall Street is wondering
how many automobile companies
will survive the ordeal.
Rails.
Erie sold up nearly a point. touch
ing l4lzs This was due 10 an
nounCement that the Interstate
Commerce Commission had approved
an SS.000.0O0 loan to the company.
Erie is waterlogged stock. but ii
has, without question. the best
freight lines between New York and
Chicago. 1t is a water grade with
the exception of one pinch. where
an extra locomotive is employed
The Erie and the Baltimore and
profit more from the freight au-
vance than any other railroads of
the country.
Replogle Steel announced its earn
ings for the first six months Of the
year to be S224.629. consisting en-
tirely of interest on cash balances.
Professionals imagined this had
some bearing on the price of the
stock and therefore sold 1t. Replogle
stock has been advancing not be-
cause Of earnings, but because of
the tremendous body of high grade
ore that has been proved on its
property which lies only forty miles
from New York City.
Montgomery Ward stock was we'll
bought today in anticipation of the
election of Edward Wise of the
United Cigar Stores Company to the
presidency in the near future The
.