Evening star., 1920-01-18
PERIOD
|NWEEK'S MARKET
EmboIdened Short Interest
Encourages Trend; High
Prices Yesterday.

| NE WYORK, January II (by the AS
sociated Press).-In the absence of
constructive developments. the securi-
! ties market this week entered upon
another period of liquidation. the de-
cline receiving substantial assistance
| from an emboldened short interest.
! Selling was most active and price
| impairment most severe in a number
| of low-grade promotion" issues. es-
pecialIy oils and few shares of no
special classification. The reaction ul-
timately affected other stocks of
more stable character
Among the issues exempt from the
general decline were the rails, metals
and representative industrialS of the
steel division. United States Steel,
for example, continuing to reflect it's
strong tonnage position.
Credits to He Further Restricted.
The money and foreign exchange
markets contributed largely to the
shrinkage of quotations. Demand
loans manifested marked relaxation,
but time money was almost unob-
tainable, even at 81a per cent for the
short dates. There was cumulative
evidence that drastic measures are
further restriction of credits.
Partly because of latest and more
menacing conditions in eastern
Europe, but mainly because of con-
tinued delay in affecting remedial
measures. foreign exchange once more
moved strongly against London and
European centers. The sterling rate
fell to $3.6SA, or within cents of
the low record made last December
The receptive attitude of American
investors and bankers toward foreign
offerings was strikingly illustrated
in the success which attended the
S25, 100000 Belgian loan, a moderate
offering of Italian government bonds
and the renewal of several CONNER
cial credits for round amounts.
"ShOrts' Active Yesterday
Flushed with their recent successes,
the short interests in the stock mar
ket made further efforts to unsettIe
prices during today's short session.
For time their attacks caused a
sharp reversal from the strong open
ing, leaders in the high-priced specu-
lative divisions, notably General
Motors, Crucible Steel. Mexican Pc
troleum, American Woolen and U. S.
Rubber. recording gross declines of
3 to 10 points.
while the list was under pressure,
and most loses We're largely retrieved.
Final prices, notably in stocks which
featured the previous days setback,
were at or near highest levels.
L. S. Steel Is Stable.
The stability shown by United
States Steel and affiliated equipments
was a pronounced factor in hasten
ing the extensive covering movement.
Shippings and rails also contributed
to the better tendency with metals
and several of the food issued. Sales
amounted to 5000 shares.
Active domestic bonds. including
speculative rails, were slightly high
er. but liberty issues continued ex-
tremely irregular on reduced offer
ings. Changes in the international
group were trivial Total sales (par
value) aggregated $6,S50,000. Old
United States bonds were unchanged
on call during the week.
Fulfilling general expectations, the
clearing house statement showed a
substantial increase of actual re-
serves. effacing last weeks deficit
and leaving a moderately large eX-
cess.
Mercantile authorities reported
mixed conditions in many lines of
trade, the situation in the main, how
over, pointing to further expansion
at distributing centers.