Evening star., 1920-02-05
DECLINE CHECKED;
MARKET STEADY
BY STUART p. WEST.
Special Correspondent Of The star.


Special Correspondent Of The star.
ruary 5.-After yesterdays extreme
Commotion the financial markets
Quieted down considerably toGay. The
exchanges were steadier. with demand
sterling up by early afternoon to 3.25,
as against yesterdays close of 3.22 e
and the extreme low of 3.1sh
The decline in the shafe list was
checked in the main. although there
were numerous individual weak spots
among the specialties. Cotton options
also stopped in their downward
plunge.
1t was calm after the storm, where
the prevailing disposition was to look
for at least some temporary improve
ment. vet where there were no very
confident expressions as to whether
the worst had been seen.
Money Rate Obstacle.
The main obstacle in the way of re-
covery was the high money rate. The
renewal on standing loans was
marked up from IA to II per cent,
the stiffest charge yet exacted from
stock exchange borrowers since the
credit pinch began to be felt last
November.
The effect of this fresh advance
In rates was. however, modified some
what by the knowledge that the gov
ernment Withdrawals from the New
York banks which had been mainly
responsible for the increased Stringency
this week were nearing an erd.
The governments deposit account
at New York has in fact been pretty
nearly exhausted. and there will be
no more Withdrawals after today.
Consequently il was thought likely
that if not tomorrow, at least early
next week. money conditions would
be easier.
New Lows for Some stocks.
The market was quiet around mid
ment shortly before the last hour
which carried some of the stocks to
new low price on this decline.
Among them were shipping issues
and others hardly affected by the former
foreign exchange situa ton.
The Merchant Marine. United Fruit.
Atlantic Gulf and American Interna-
tional were hard hit while CASTOR
Williams and Whitemore and Mexican
Oils also were heavy sufferers.
The only bright spot of the entire
list was Endicott Johnson, which ad-
vanced again today as il did yester-
day.
The Railroad Situation.
The majority in Wall street took a
favora bic view of the agreement
reached by the Senate and House
conferees yesterday on the provisions
for turning back the rails TO private
ownership March l. However. there
are several points in the agreement.
even 10 tie men who have made a
study of the situation which are still
quite fogcy. One OF these points is
how the government is going to find
the property value of the railroads in
order to fix the 81. per cent return
allowed by the bill.
One man said that he had just re-
frr1 frnr Si, hor he
had been for the past two weeks
studying the legislative situation. and
he expressed himself as quite pleased
with the way things had turned. He
said that the railroad presidents were
more than pleased and felt that the
present leg. g.slation gave the rails
more protection and a better chance
for improvement than any legislation
that had been proposed hitherto. and
that il was much more than they
really expected.
Another man. member of one of
firms. said that the situation at the
present time was decidedly bright and
that the holder of railroad stocks and
bonds could see daylight for the first
time in many months He felt that
n,arketwise the rail shares, especially
the little or weaker roads, were in a
position to be materially helped and
that when the general market picked
up the rail stocks would be among the
leaders
Another man who has also made a
study OF fhe situation said he could
not see how the rails could be pur-
chased at the present time: that, even
though things looked bright at Wash
ineton. there was still bound to be
trouble, because some of the provi-
sions would not be accepted.
Selling Pressure Lessened.
There was some slight interruption
In the wire service to interior cities.
but IL was not enough to be q factor.
Most of the wire houses reported that,
despite the storm. they were doing a
normal business with out-of-town
points.
Thus it was fair test of how far
the western liquidation which had cut
such figure yesterday and the day
before had been completed. The tes-
from the start. There, was not the
heavy selling that there had been
yesterday. Here and there weak spots
cropped out among individual stocks,
particularly among the newer class
of industrials
might have been set down quite easily
as the familiar leftover liuuidation'
which occurs after the main part of
the decline has eliminated.
All the IndfcdttonS' pointed to the
Short interest having been greatly re-
dUced as the result OF yesterdays
enormous liquidation.
sOne house which has been bearish
consistently for the last three months
and which saw quite a paper loss at
one time in January reported that it
was about three quarters covered up
This seemed to be fairly typical of
i'.e brokerage POSITION in general
There was further experimenting on
the short side.
SOne house. which s credited with
artinS for well known plunger. was
= heavy loser of Steel common in the
first hour, but almost Immediately set
about rebuying. when il was discoy-