The Washington herald., 1920-05-02
STOCKS MAY
BE- OVERSOLD
For This Reason Coming
Week May Witness Tenn
porary Rally.
RAILS WELL BOUGHT
/. Op MON Prevails That Good
b. ing Has Appeared in
= Fading at Lower Levels.
RAILS WELL BOUGHT


qua crs that the extensive selling
& - past two weeks had about
'ul:- IHated- A decidedly more op-
imi ic feeling was obtained in the
lna" ial circles. although it was
ul!. realized money is likely to be
ali, firm for some time to come.
n took market situation as a re-
ul 4 the extensive liquidation has
&c rectiied to an appreciable ex-
en-. nd some of TIE prognasticators
4 ! Lrket operations said they be-
lev the turn in the market had
al, I place on Friday when. during
h .ast half hour, a substantial
al e.. took place throughout the list,
vi . United States Steel common,
vi II had sold down to 93S earlier
n me day advancing to 95b and
10 ing at 94H. Baldwin Locomo-
IL was another strong feature,
Il ng about 2 points above the
In. quotations of the night before.
Tight Money a Factor.
is realized that the money sit
Ia run throughout the Middle West
Il Oeen a rather tense one for sew
r days past, but this has accom-
u. Ied desired results in that there
q taken place considerable liqui-
!; IN of commodities with the re-
al that meat prices, for instance.
4 lined a sharp break. bringing
~ ) down to a level lower tnan
Il: obtained for some time. 1t also
60 stated that corporations have
. iyed some cancellations of or
10 p. but this also was accepted as
.vorable influence because opera
of this character Immediately
n Sc the demand for money. 1t
been the desire of the financial
munity for some time past that
idation take place in commodi-
and what has taken place in
e.. respect thus far is regarded as
\ reflection of what is to fol-
later on.
""me of the bearish groups of
'crs expressed the opinion tina.
lew of the scarcity of money
I which to conduct commercial
vity many industrial corpora
3 will experience considerable
rulty in the future. but the more
-ervative element took the posi-
. that normal liquidation and
TONln6 uONn OIL dtllNllleS VIII
as a corrective measure without
ious results to corporations gen
ly. 1t was pointed out by some
kers of standing that once the
per degree of defation has been
Omplished in the commercial
Id there will be a freer move
ut of money for investment in
urities. although it is not thought
there will take place any un-
al bullish demonstration in the
Ir future. because such action
uld not be looked upon with IA
by the banking community of
country. While there are many
'"ialties which. in the future, may
< a level more nearly in line
h the actual conditions surround
the affairs of the corporations
rs represented there are other
ncks which it is felt are now sell
at most attractive quotations
4 some are recommending the
rchase Of those who have avail
le funds in banks which does not
all the borrowing of money to
tertain such a commitment.
Rails and Equipments.
II the railroads of the country arc
, make large purchases of new
ling stock. rails. etc. ii would
pear that the equipment stocks as
IL as the steel issues should un-
rgo a decided improvement as soon
the present unsettIemcnt has
en- overcome. This should not be
O. rterpreted as indicating that there
rould be a mad rush to purchase
ocizs at this time. but those in
rose touch with financial affairs
ere inclined to recommend the con-
rvative purchase of some of the
andard issues such as Baldwin Lo-
motive, American Locomotive,
nited States Steel common, Lacka-
anna. etc.
The action Of Reading stock dur
ng the last week was interpreted
4 some circles as indicating that
re issue is ring absorbed on each
action by strong interests. I'm
'ediately following the decision by
he Supreme Court which was un-
. lvorable to the company thCrC d.
eIoped a buying wav" which car
I'D Reading stock IN about -
oints. The public follow in-. how
yer. some intimatCd. was to" "Nton-
i've to be appreciated by those most
losely identified with the affairs of
hat corporation and at the higher
wells established there was a fairly
beral supply of the stock which
arried the quotation down about 10
oints from the high of the week.
/ is understood. however, that the
uying of Reading at the recently
over quotations has been of sub
tantial character. 1t is also under
TODD that railroad stocks represent
1E some of the small companies
we're picked up by influential inter
SITS during tho week when the lower
evels were established.
Market OycrsoId.
UndeniabIy there has been a con-
fdArable amount of real liuuidation
n the stock market during the past
ortnight. but at the close of busI-
ess on "riday those who had been
most bearfstly inclined two weeks
go expressed the opinion that the
market indicated an oYcrsold condi-
ion. While IL was admitted that
urther recessIons may take place
uring the con ing week the argu-
1ent was advanced by many shrewd
oservers of the tape that there un-
would be good buying
that event. Repeated attempts
Iere made on Friday by the bear
lement 10 depress prices, but the
hammer in which prices came back
o their previous levels indicated a
airly strong technical position in
he market as a whole.
Motors Under Pressure.
There was rather heavy selling of
he motor issues during the entire
'eek under the leadership of Cen
rad Motors common. which was in