The Washington herald., 1921-01-09
WASHINCTON1
EXPOSES ALI
CONSPRACYl,.
Shipping Board Probe
Used to Base Rumors
Against Doheny.
SENDS TELEGRAM
Claims PheIaEs Report Shows
Good Supply on
Property.

NEW YORK, Jan. b.-The actual
bank statement today showed sur
plus Increased SI,sI2.t5O. loans de-
creased S54,254,OOO and net demand
deposits increased s4s.2zS.ooO The
average statement showed surplus
increased $5.sl2.SSO. loans increased
$4,000 and net demand deposits
increased EI55,s42,OOO.
The Federal Reserve Bank
showed 80 per cent against 80 per
cent a week ago Of ratio Of total
reserves 70 deposit and Federal re-
serve note liabilities combined. 1t
also showed 57.7 per cent compared
with 3ss per cent OF ratio Of re-
serves to net deposits after deduct
ing 90 per cent gold reserves
against Federal reserve notes IN
circula ton.
Proposes IHveEtIEHtion.
Announcement OF a proposed in
vestiEation Of the banks was used
yesterday as an excuse for the
! slightly resctionary tendency shown
| in the stock market. The recession
/ in quotations. however, had been
expected. owing 10 the rspidity Of
| the advance recently and resulted
1 from realizing sales and some short
selling On the whole Wall. Street
was pleased with the action Of the
| list in displaying a. much stead
ness as ii did when il is realized
( that prices for the last eight ses-
sions have advanced an average Of
seven points.
Brokers pointed out that inClud-
/ ing Fridays advance there has been
/ recovery OF about fifty per cent
Of the almost interrupted declin.
since election day Commission
/ houses began yesterday advising
customers who had unusually large
profts in spciaIties TO let 60 Sonlr
OF their holdings on the expectation
that there should be a natural re-
action at tins time when stock
could be repurchssed.
Strength shown.
Early quotations showed general
strength, but the higher level Was
used TO take profits in many direc-
tions. Some speCialties continued
their upward movement and touched
new high figures for this move
ment. this being particularly true
OF International Paper. General As
phalt and some Of the lOW-priced
oil issues. Price changes were ir-
regular during the latter part Of the
session but the close was steady.
In the absence OF any ofhcial an
noUncement concerning the affairs
OF the company pressure was re-
sumed in Atlantic. Gulf and West
Indies, which declined nearly Z
points to the new low record OF So.
The decline in this issue is q mys-
tery to the financial district. which
persists in believing that the divi-
dend will be reduced.
Mexican Petroleum showed
strength early in the day but
those professional bears who have
been hammering the stock con
tiuUed TO offer il at the expense NJ
price and forced It down to a point
where il showed a loss Of nearly >
points. The persistent hsmmeriu=
u this issue by certain large bear
operators draws attention to a
statement made public yesterday OF
a telegram sent in a letter by Henry
Evans to Elisha Walker Of Blair
& Company. The telegram was
sent by Thomas J. Ryan. Washing
.0R, d. c, and says:
Claims COnsPirEty.
Have discovered conspiracy
here OF the New York bear crowd
to depress Doheney stocks They
have sold short a large quantity
and have put out a rumor that the
United States Shipping Board have
had their expert in Mexico investi-
eating the oil situation. and his
report is that Doheney companies
have no Gil. The Shipping Board
have just Sent their expert. PheIsn,
TO see me. Phelan says that he has
been in Mexico for the shipping
'Soard, but this report. which no
one but Admiral Benson has seen.
is that The DOhSny companies have
more oil and better oil properties
than any company in Mexico. There
is very large short interest in
Mexican Petroleum and Pan Ameri-
can"
Allied Chemical was fairly active
on reports that the corporation is
negotiating for control OF the
largest potash deposits in Eu-0re
outside OF Germany. Negotiations
are stated to have progressed TO a
point where IL is practically certain
that they will be concluded ssfTs-
'aCtorily. An oficial snnourceu,srt