New-York tribune., 1920-07-21
Better Tone i'm
Stock Market ON
Light Tradin g
Pressure Against List Lifts
After Announcement of
Railway Wage Award;
Call Money Easier, 8 PC.

Speculative Wall Street proceeded
on the theory that the $600,000 600
wage increase granted the country's
railway workers under the award of
the Railway Labor Board would be
acceptable to the men. Moreover it
was believed that the added financial
burden would be more than offset by
an increase in railroad freight rates to
be announced shortly by the Interstate
Commerce Commission. With senti-
ment somewhat more hopefully dis
posed as a result of this development,
the demand for stocks broadened per-
ceptibly and the market was lifted out
of the rut in which it has been drag
ging for number of days.
Moderate improvement occurred in
most parts of the trading list and the
bear traders not only desisted from
their short selling operations but what
was equally important covered. in a
portion of their outstanding short con-
tracts 1t was repurchases for the
short account that gave the market its
better tone. The Street still hesitated
about entering into active operations
for the rise in view of current uncer-
tainties, chief of which is an extremely
unstable money position. There were
signs of slightly easier money, and re-
newals of call loans were made at 8
per cent, which was the rate for new
loans. Brokers, however, continued to
complain that they were finding diff.
Guilty in covering all their needs.
The outstanding development in the
I news was, of course, the railway wage
award. The announcement of the find
incr nf ,.N
early in the day, so that the Street
had plenty of opportunity to study it
in detail. Actually the award made
the workers is about 100000, 900 larger
than had been generally anticipated in
financial circles, and on this basis
bankers and other financial men were
of the opinion that the railroad en-
ployees would accept the increase
granted. The advices of the reception
of the decision by the union men bore
this out. Now the Street is waiting to
Commission will do with regard to
granting the roads liberal increase
in freight rates. Railway officials ex-
pressed themselves yesterday as being
extremely hopeful of the outlook for
the railroads. They argued that the
increase in wages awarded the work
crs will make it possible for the roads
TO compete successfully LOT laOOr Wltu
other industries, which in the long run
is likely to result in greater efficiency
in operation. Whether other roads will
follow the suit of the Pennsylvania
Railroad and lay off workers for the
purpose of retrenchment is not yet
known.
The speculative favorites displayed
vigorous tone for a time yesterday
and some striking recoveries were reg
istered in Baldwin Locomotive, Cru
chile Steel, Stromberg Carburetor,
American Woolen, Pressed Steel Car,
American Locomotive, Invincible Oil
and Mexican Petroleum. Railway
shares were higher as rule, although
the volume of business done in this
department was comparatively small.
Attendance at the exchange was some
what reduced by the absence of many
brokers who had gone to the yacht
race In the afternoon the market be-
came exceedingly dull, but maintained
its tone of frmness to the close.
Foreign exchanges displayed greater
stability yesterday and sterling rates,
after an early dip, hardened. The Con
tinental exchanges were also steadier.
Exchange moved heavily against Ar
pontina.