The Washington herald., 1920-05-18
STOCK MARKET
CLOSESSTRONG
Market. Heavy at Opening,
APrey to Professional
Traders.
CALL MONEY Is LOW
Federal Reserve Conference
To Mark Turning Point
Of Business.

per cent this afternoon and the
professionals covered short con-
tracts TO such an extent that ad-
Nances were seen in nearly all ac-
tive Issues. This recovery in the
market was started by the arrival
from Europe of George ]. Whelan
and his expression of the opinion
that panic talk was not justified.
This bit OF optimism frightened the
bears and even caused some of the
Important bankers to abate some
what their pessimistic talk.
Early in the day the market was
heavy and professionals did what
they pleased with II. 1t is gener-
ally admitted that the market was
oYersold and the arrival of Mr.
"helan just before noon turned the
whole list. The close was strong
and active with money at the low
point of the day.
General Electric Company,
The General Electric Company
discovered last week that a strike
was to be called at it's factories at
Lynn. Mass. There was a scarcity
or raw material in the factory and
therefore the company today an
nounced that II would lay of $500
men Indefinitely. This will give
them time to think the strike over.
Many other factories will be COM
PEELED to follow suit unless the rail-
road strike is broken Immediately.
The Western Electric is expected to
shut down its Chicago plant, not
because of the threatened strike.
but because OF an actual shortage
OF raw material plus the inability
10 deliver finished products because
OF the railroad congestion.
Federal Reserve Conference.
The Federal Reserve Conference
at Washington is expected to mark
the turning point Of business. III
the bank insists on forcing further
restrictions If CLnme rcial loans at
time when merchants are help
less to iquidate beca, Sc of the rail-
road strike, IL is expected that a
measure will be introduced in Con-
gress amending the reserve law or
abUlishing the system entirely. The
bank was instituted to help busi-
ness men and not to oppress them
The high level of loans is due al
most entirely to the railroad strike.
Higher money rates will not help
matters
Willing to Increase Wages.
Railroad owners gave official no
tice to. President Wilson's Labor
Board today of their Willingness to
grant an increase in wages. 1t is
imElaterial to the railI oads what
wages are paid. because TIE United
States govern ment has taken charge
of their operation by law and stands
obligated under the terms of the
recent actOf Congress to grant such
tates as will permit profitable Op-
'eration. There fore any increase of
wages mcst be reflected in an in
crease of rates There is no money
wiIh which to Increase wages. The
labor men have A quarrel. not with
the railroads. but With the Inter
stats Commerce Commission, which
has delayed its decision on rates.
The situation is desperate and de-
manding quick action because of
the outrageous condition in the
money market that has resulted
frCm the freight congestion.
U. =. Retail stores.
The professional traders particu-
larIy were impressed when United
Retail Stores suddenly began advanc-
ing and did not stop until it rose more
than five points. Other stocks fell
in line and the advance begun in
the tobaccos had permeated the en-
tire market before the close. 1T
was the first distinct check that the
bear party had received recently in
their campaign of pessimism.
French Rates Advance.
The sharp advance in French eH-
change helped the market also.
The world is beginning to realize
that France. although about to
levy heavy taxes, will spend most
of the money for rehabilitation of
the devastated regions and that the
French will be reimbursed later for
this expenditure by Germany. Even
German exchange showed improve
ment.
West Wants Freight Cars.
Call comes from the West for co.
900 freight cars to handle the con-
Eestion OF food products in the
Middle States. The East will also
have. to furnish funds for moving
this produce. Unless the reserve
board finds itself able to realize
this situation the East will be hurt
severely. not only through the
shortage OF rolling stock. but
through the payment of large and !
unfair interest rates.
Governments War Bonds.
New low records were seen again
in some Of the governments war
bonds.