The Washington herald., 1920-08-05
STOCKS UNEASY.
DURING SESSION
Closing Quotations Practi-
cally Unchanged from
Yesterdays Trading.
STEEL STOCKS STRONG
Allan Ryan Breaks Monot-
ony by Filing Long Ex-
pected Suit.
STEEL STOCKS STRONG

New York, Aug. 4.-The Boil
sheviki disturbed the stock market
SO much today that New York
bankers were compelled to drop the
call money rate to reassure the
public and prevent another break.
The opening was steady but al
most Immediately there was a sharp
selling movement which carried
prices down an average of point
in active issues. Support was seen
in United States Steel, Southern
Pacific and Crucible. The renewal
rate was fixed at Z per cent and
the call money rate dropped to six
where ii remained until the close
of the day.
The most disturbing feature OF
the early part of the day was the
further collapse Of sterling, which
went to 3.56. a decline of more than
Z cents from yesterday. This weak
ness of sterling coupled with re
port that Warsaw was about to be
taken by the BOlsheviki alarmed
the street thoroughly. In the after
noon when cheap money had helped
to reassure the traders the an
nouncement came that Great Britain
had sent a note to the BOlsheviki
demanding certain immediate con
cessions in regard to Poland.
Sterling Immediately recovered and
the whole market turned strong
Just before the close the market
turned weak and the day ended
about where ii closed yesterday.
Two very favorable reports were
made by large corpOratiOns-Mid-
vale steel and United States Rubber.
For the second quarter of this year
Nidvale reports earnings at the rate
of s217 a share, compared with
75c a share in the first quarter and
4Sc a share in the same period last
year. United States Rubber re-
ported an increase Of s3.O59.l9O in
net earnings for the first six months
Of this year after making all provi-
siOns for fixed charges and taxes.
The volume of the cOmpany's bust
ness is beyond all previous records.
MidvaIe and Rubber were both
steady. but neither advanced ma
terially on this news.
American Cotton Oil broke to q,
hut was very dull at that price.
This decline of - points in two
days and the low price Of p fur
nished some thing to think about in
view Of the many buIlish reports
that came from the headquarters
of the company a few months ago.
American Tobacco announced that
the dividend for this quarter would
be ; per cent, payable in scrip
bearing s per cent interest and
convertible into "B" stock.
steel stocks were the strongest
features This is the natural re-
suit of the excellent earnings
-
States Steel Corporation, Republic
and Lackawanna. All the steel
companies are making as much
money as the transportation facil-
tiles of the country permit The
demand for steel products is such
that it will be impossible to over
take it for several years.
Southern Pacific was one of the
best actors among the railroads,
and really led the market.
The petroleum stocks came back
strong. but in the late afternoon
sold off on profit taking, but deal
ings in them now are almost en-
tirely professional.
Allan A Ryan filed his long-eX
pected suit against the New York
Stock Exchange. claiming Sl,O00,OOO
damages because of the action of
the eNcnanBe IN the SIulZ dldlr
This suit is far more important to
the public than IL is to Mr.. Ryan,
, because in the prosecution of II
many questions will be raised and
settled judicially that have annoyed
investors and spectators for many
years. 1t will be a good thing for
the members Of the exchange to
have the questions at issue threshed
out. The suit can hardly help but
result in several radical reforms
Bankers are much concerned over
the reception that the new railroad
issues will get from the public
They must have considerable money
at once, and while the new rates
give them greater credit the public
has not the funds with which to
buy. 1t will be necessary to nur'
ture A buying market before any
considerable financing can be done
for the roads. For that reason
early large issues are not expect
ed. Most bankers expect all fnanc-
ing OF Importance to be halted un'
til the election can be forecast with
certainty