New-York tribune., 1920-03-20
Market Irregular
Under Conflicting
Trading Faction
Profit Taking Puts Prices
of Some Issues Down, but
Speculation Causes 9th
ers to Advance Sharply

between pTOnC TAKING In some partS
Of the list and renewed speculative eff
fort for the rise elsewhere, yesterday s
market was extremely irregular. Reac-
tions were frequent and ran far in in
dividual stocks which have been the
center of aggressive operations for sew
cral days. But with all the heavy real
izing sales which seemed more extern
sive than has been observed lately, Of
fcrings of this characret were rather
we'll absorbed, all things considered.
Moreover, selling for this purpose did
not have the effect of bringing about a
general setback, but. on the contrary,
seemed to encourage shifting Of opera
of sharp and even sensational gains
in many shares.
Aside from spectacular advance in
sterling exchange above $3.50, estab-
fishing a new high record for the re-
covery, news bearing on the market
was not particularly important, al
though certain professional interests
sought to check the rise in stocks, on
intimations that the reported impend-
ing gold influx from England and
France might not materialize. This
did not prove much of factor, how
ever, and appeared to be more than Off
set by the ability of Stock Exchange
borrowers to obtain an abundance of
money on call at per cent.
To many observers the two-sided
character of the market yesterday,
with weakness in some issues con
trasted with pronounced strength in
others, was not surprising. 1t was re-
called that last year in the early stages
of the prolonged rise in prices it fre-
quently happened that the market had
periods of natural reaction and adjust
ment such as are to be expected in any
normal market swing. The parallel be-
tween the present recovery and the
big market of 1919 obviously cannot be
carried far because Of completely diff
iferent settings Last year the market
mad passed through period of extern
Sslve liquidation, and, what was per-
called upon to absorb the enormous
mass of new capital issues drawn out
by the .public's voracious appetite for
speculative securities. Nor was q
pressing problem of credit shortage a
deterrent factor upon speculation. 1t
IS generally recognized in the case of
the present market that credit sup
plies are. still limited, despite tenn
porary relaxation. Bankers are talk
ing OF another money stringency in
May or June.
Those who held that the present re-
covery will likely go further pointed
yesterday to the interesting fact that
the market was inclined to relapse into
guinness when prices eased off, whereas
IT became active on the advancing side
New groups of stocks were prominent.
including the sugars, the tobaccos and
some of the oils, which heretofore
nave been more or less laggard. Stocks
classed as stock dividend possibilities
tow
ment men. OF the declaration of a large
stock disbursement by the General
Chemical Company helped to keep the
pot a-boiling. Stutz Motors, promi-
nently mentioned in this class. rose
above 200. Buying in American VAna-
dlum, credited to the same origiN as
IN .Stutz, pushed that issue ahead in
sstrlKlng manner IN the late afternoon,
lust when it looked as if the forces
workang tor general reaction might be
successful in measure. That started
things moving again. Steel common
sold above 104 in the forenoon. or
about II points up from it's low of Feb
ruary.
The rise in sterling exchange. while
1t was considered by some bar,kers az
oelng due in a measure to a suddenly
increased demand for drafts on Lon
don lr a thin market. nevertheless ap-
nearea 10 bear out the contention Of
those who believe that the worst of the
international credit crisis has been
experienced: February's foreign trade
figures, indicated AGAIN the tendency
toward ,curtailment of American ex-
ports, though not to the extent pre-
dlcted in some quarters. Exnorts
reached S646,000,0O0, the smallest since
October, and compared with S722 900
ooo IN January, but February was
short month. Imports fell off. but NOT
IN proportion to exports. Interna-
tlonal banking experts are of the onin-
ION that the foreign trade figures will
not show the full effects upon our for
elgn commerce of the great premium
on on the dollar in other markets until
May and June, or later.