The Washington herald., 1920-10-21
TONE TO,
STOCK MARKET
0pimistie News Regarding Lopdsr
Coal Strike Has Cheering
Effect on Street.
CALL MONEY LOANS AT7P. C.
Trading Resumed on Increased
Scale But Confined Almost
Entirely to Professionals.
CALL MONEY LOANS Ar7P.c

New York. Oct. 2o.-Cablegrams
from London stating that the coal
strike would soon end. owing 70
overtures now under way, helped
impart strength TO the stock mar
ket today. Call money loaned at,
u per cent throughout the day. andi
demand sterling advanced nearly 1
cent. Trading was more active
than on Tuesday, but represented
almost entirely the operations Of
professionals.
Commission houses report that
their clients are doing practically
nothing in the market. and that
there are no signs OF increased ac-
tivity on their part.
The reassUring news from Lon
don resulted in a strong market
early in the day, but realizing sales
developed in the afternoon and re-
suited in irregularity. Most issues,
however. closed with small net
gains.
Railroad situation.
Improvement in the railroad stu
alton. together with the fact that
industrial shares have discounted
Liquidation OF inventories. leads stu
dents OF market conditions to be-
lieve that any favorable news would
find the market in a responsive
mood. Stocks have worn through
period OF discOnCerting news OF
various kinds. and are considered
TO be in strong technical position.
A sharp contraction occurred in
the dealings in the first and sec
ond preferred shares OF the Read
ing Company. Persons in a posi-
ton TO know the plans Of the board
are buying the common stock and
advising their friends TO leave the
preferred issues alone.
Government Withdrawals.
Government Withdrawals are be-
coming less and less a factor in
the shaping Of money rates, accord
ing TO bankers. The fact that call
money ranged around Z per cent in
the face OF heavy Withdrawals in
the Second Federal Reserve district
is accepted as evidence OF the in
creased supply OF funds resulting
from reduced inventories and cur
tailed production.
Increased activity and strength
in NivaudOU was a source OF con-
siderable qualification to those who
have carried the stock through a
weary period Of depreciation. Many
persons who held Willys- Overland
are switching from that issue into
NivaUdOu.
International Paper was under
pressure and closed with a net loss
OF three points Sales Of the issue
were based on expectation that the
price Of paper. one OF the few com
. so Ef-F1 q ia aHH
will in the near future have 10 be
reduced.
Mexican Petroleum at one time
during the day showed an advance
Of more than two points, due 10 the
announcement Of the bringing in
Of a new well. Most Of the gain,
however, was lost in the afternoon.
Efforts continued to be made 10
depress Coca-CoIa on rUmor that
the directors next Monday will pass
the dividend. The stock, however,
closed strong, with a net advance
Of Z point.
Republic Iron and Steel.
/ The very favorable report ot
earnings announced by the Republic
/ Iron and Steel Company for the Sep
tember quarter caused the fianCial
district to raise its estimate Of the
| earnings statement to be issued by
I the United States Steel Corporation
next Tuesday. The statement is
now expected to show about S5@,-
10000 earned.
In the quarter ended June 80 last
the corporation earned net Of S4a.-
155.7O5. and in the three months
ended March 81 net was $42,OS9.OIs.
Net revenues in the September
quarter Of last year were S4O.l77.-
232 The favorable statement is
sued by the Republic caused an
advance Of about points in the