New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-08

On the fifth successive day OF q ris-
ihg stock market yesterday it became
difficult to distinguish between cause
and effect. The mere fact d squirting
security prices caused substantial
broadening Of activity and gave fresh
impetus to the upward tendency.
Nothing so appeals to the amateur
Spectator as the spectacle of ascend
ing prices, and there were indications
yesterday Of 4 slightly wider outside
participation in the buying and selling
of stocks. Yet, despite the fact that
transactions were larger than on any
day since May 20, it was plain that
the public was not yet in the market
as the determining factor. AS q floor
trader remarked, the upward swing has
added the professional to the list
Of market operators. By semi-profes-
SIGNALS, he meant those who are not
always in the market, but who are
usually participants in the speculative
adventure, except in periods Of extreme
dullness, such as the one from which
the market now seems to be emerging.
Transactions yesterday reached 824,-
200 shares, compared with 340,56S
shares week ago.
The unattached public, whom the
directors of pool operations hope soon
to interest in stocks, seems disin-
clined so far to repeat the speculative
leaps of earlier months. The small
buyer is for the time being an investor
rather than Spectator. The swift
ness with which the government of
Switzerland loan of $25,000,OOO was
subscribed mainly by purchases of per-
sons of relatively moderate means is
perhaps a symptom of the present
temper of the outsiders. Against an
per cent we'll secured government
bond the vender of speculative securi
ties must compete.
Despite reaction in the last half
hour of trading, due mainly to profit
taking, virtually the entire list again
revealed significant net gains for the
day. The rails and the industrials were
equally affected by the wave of buying
which carried prices forward.
Even some of the commission houses
which have been predicting elevated
prices are finding difficulty in explain
ing the movement, which seems to
originals chiefly from the fact that
traders concluded that the market was
technically ready for squirt. The
fountains and springs of strength of
the market are mainly internal con-
ditions, rather than news develon-
ments in the outside world. The e.
pectation of a temporary easing of
money conditions this month has given
moving impulse to the market.
Money renewed at 8 per cent yesterday.
then fell to Z per cent, and broke rs
reported no difficulty in meeting their
needs.
Although the extent to which bust
ness must react during the period of
readjustment is not yet definitely
known, and in spite of the barriers
placed in the way of forward in
dustrial developments by the defla-
ton program Of the banks and the
ineficiency of the transportation sys-
tenn, some observers contend that in
its series Of declines since last Novem-
Der the market has fully discounted
the adverse factors in the situation.
On the favorable side attention is
called to the following: The foreign
exchanges. whose. collapse during mid
winter adversely affected security
prices, have been steadily retracing
Lost ground for several months; a de-
cision from the Interstate Commerce
Commission granting freight rate in
creases to the railroads is expected
soon; the Spa conference is on and
may possibly mark q step toward the
return to normal nolitico1 ond
economic conditions in Europe.
The conflict between the favorable
and the unfavorable factors kept the
market deadlocked in dullness for
weeks, but for the last Ave days the
optimists have been leading the way.
The scope of the upward movement Is
limited by the knowledge that the
market is being financed mainly by
call loans, and that, even if money does
become temporarily easier until the
crop movements reach the peak.
money is likely to be relatively tight
during the fall.
The reaction which affected stocks
in the late trading also Influenced
Liberty bond quotations, which fell
sharply when one huge selling order
reached the market. Savings banks
and insurance companies are expected
to come into the Liberty bond market
as DuyerS as soon as they know how
they stand after the mid-year changes.
That further shipments Of gold were
from London that $3,O00,0 900 more Of
open market gold consigned to New
York bankers was on the high seas.
Sterling was a little flrmer yesterday.
but continental exchanges were easier.