New-York tribune., 1920-10-23
Stocks Act Well
Despite Advance
In Money to Pct.
I e emporary Development
Due to Government With
drawals Fails to Depress
Prices ON the Market

Borrowers of call money at the
Stock Exchange paid 10 per cent in
the late session yesterday after re-
This rise in the rate for demand loan
accomm odations, while plainly tenn
porary development due to the
extraordinary demands made upon the
banks this week as a result Of large
government withdrawls, supplied the
foeature of the day in Wall Street.
The stock market stood the test of ad-
vancing money rates we'll, however,
and despite the fact that it had to
contend with the strike news from
London as continuing adverse in
fuence, stocks at no time displayed
weakness. There was, it is true, much
irregularity and the trend was in
definite, still the offerings were not
heavy. The chief effect of the COM
bination of bearish influences was to
restrict trading operations, and deal
lnGs tell off rather sharply.
In view of the widespread talk of an
prices, the Street manifested much
interest in the address of F. H. Gary,
of the United States Steel Corporation.
before the members of the American
iron and Steel Institute. The head of
the largest steel manufacturing organ
lzation in the world is usually opti-
rustic OF general conditions, and his
speech Of yesterday sounded hope
rul note. as usual. Mr. Garv's re-
marks relative to the steel industry
itself were not construed so favorably,
however, and there was some selling
OF steel shares on the assertion that
some adjustments in prices would
have to be made as matter Of
course. The downward movement of
the steel shares was not pronounced
and it looked like an Intellectual ef-
tort Of the professional traders to in
duce general selling in horrs of de-
pressing prices all along the line.
with regard to the strike situation
IN England, the cable advices indicated
httle or no change, but the London
market was cheerful, and this was ac
ceptcd on this side as a good omen.
One of the favorable Developments in
the domestic market yesterday was the
remarkably quick ovcrsubscription of
the new S25,000,000 Danish government
loan. which investors took with q rush.
With all the hesitation existing in the
speculative security markets, the de-
mand for prime investment issues con-
tinues extremely strong. This is one
of the best aspects of the financial
markets at the moment Foreign gov
ernment loans have gone especially
we'll of late, and it is expected that
further offerings of this character will
be made in the near future A Brazil
ian operation running into fairly large
figures is looked for next week.
The foreign exchanges, which had
been unsettled the day before by tne
strike news from the other side, dis
played better tone yesterday, with
sterling rates holding about steady
Cotton prices in this market showed a
tendency toward recovery, while the
grain market was steady, with a rally
in wheat. The run-up in call money
rates, while unexpected. occasioned no
great surprise in quarters where the
local banking situation is we'll UNDER
stood. Government Withdrawals this
week have been unusually heavy, neces-
stating some calling of loans. This
situation is expected to correct itself
next week, however. Investment bank
ers see tendency toward the accumu-
lation of funds in country banks as
result of the general business contrac-
ton in the broadening demand for
5hort-term notes.