The Washington herald., 1920-04-25
WALLSTREET
'DEFERS PLANS
Dismantle Financial Der
thu" as Pools Try to Cut
Way Out Of Tangle.
SPRING FISHING POOR
Public Fails to Swallow
Hook and Manipulators
Are Caught.
SPRING FISHING POOR

New York. April 24.-Today's
stock market was just a repetition
of what has been distinctly notice.
able In speculative circles during
the past two weeks. 1t was indica-
tive Of the severe fight many of the
so-called insiders are putting up to
prevent. IL possible. an absolute
fading away of stock values, at
least until they are able to dispose
OF part of their enormous holdings.
Notwithstanding huge support
from the banks, evidenced by a con-
tlnuatton Of low call money rates,
these Interests have found it a diff
cult task to maintain a semblance
OF an orderly market Two or three
times last week prices gave way un-
DER extreme pressure, partly from
snort selling, but mostly from real
liquidation. And this liquidation, IL
may be mentioned, did not all come
from an unsuspecting public, but
from public quite "suspectfnR,"
IN other words, much of this liuut-
datlon, as the term is applied in
wan street, came from the inside.
wall Streets Plans Temporarily
Deferred.
Wall Street evidently had IL pret-
ty well planned to back up the old
cart and unload. Not only does 1T
now seem that Wall Street planned
to unload from the old market bas-
ket. but from a new one as well.
1t was not going to be satisfied
to hand the public a drenching
from the old watered stock bucket,
but evidently planned a deluge in
the way of new financing. But
Wall Streets plans have tempo
rarily been deferred" This, not
withstanding the many declarations
of stock dividends. 1t was a we'll
baited hook
Three three weeks ago some four
or five hundred million dollars in
new stock and bond issues were to
be shot from the various banking
houses in the Wall Street district.
This was to be the forerunner of a
financial Bertha" to be opened up
on the country a little later on. In
the meantime, we were to have a
big bull stock market. long horns
and all, and in the end the public
was to hold the red flag. But, as
stated above. Wall Streets plans
have Temporarily been deferred"
Big Bertha" has been dismantled,
while the pooling brigade is en-
deavoring to cut its way out of its
own well-built barbed-wire tangle.
Money and the Banks
While Wall Street has seemingly
been able to obtain huge sums OF
speculative funds at an average in
tcrest rate of not over I per cent,
merchants are wondering why they
are forced to pay s, 10 and, in some
instances. IL per cent for legitimate
commercial requirements. This sit
uatfon Is not only puzzling TO mer-
chants, but to the whole country.
Just how long the banking interests
will be able to support Wall Streets
stock pools is problematical, but IL
is safe to assume some change will
come to the surface shortly. The
Federal Reserve Board has had sew
craI conferences of late with repre-
sentatives of member banks all over
the country. and these conferences
in some instances have not been
very tame affairs. In fact it is un-
derstood that certain institutions
have been instructed to throw out
and from now on refuse all re-
quests of this nature This is taken
to mean that a systematic process
to eliminate speculative borrowing
is now under way. Wall Street, at
least Wall Streets stock manipu-
lators, will consequently, sooner or
later, find il a difficult matter to
carry on operations to their liking