The New York herald., 1920-01-18
BEARS, ALARMED,
MAKE EARLY RAID
TRYING TO COVER
Sharp Rally Follows Relaxa'
ton of Pressure-GainS
Registered at Close.

Movements or prices on the Stock Ex-
change yesterday indicated that, for the
time being, the market had been thor
oughly liquidated. A slashing raid by
the short interests early in the session
evidently was for covering purposes. AL
though in the course of that attack quo
tations for the oils, motors and certain
specialties on the higher levels were re-
duced greatly they rebounded sharply
Immediately after the pressure had been
relaxed.
The remainder of the list, which had
held well while the one time bull IA
vorites were declining, increased in buoy
ancy. Final figures for the active issues
showed net gains extending from two
points to six points; while the tone of the
/ trading at the close was decidedly strong.
One of the features Of the day was the
small offerings Of shares after the de-
clines, indicating that the resources Of
the bears had been impaired considerably
by the continuous selling all the week.
On the other hand evidence that new
shorts had put out lines on the high
places yesterday was presented in the
demand for stocks in the loan crowd
after the close of trading.
| The more hopeful foreign and domestic
news, and the expectation of a great i'm
provement in the bank statement to be
issued at the end of the session, were re-
sponsible for the uneasiness displayed by
certain of the interests on the overcrowd-
ed bear side Of the market. Undoubtedly,
however much of the covering was merely
the customary week end profit taking.
Nevertheless large amount of the buy
ing was the outcome of a pretty general
realization OF the fact that the iquida-
ton forced earlier in the week by de-
mands for additional margin had about
run its course.
| But no small amount of the purchasers
were for the account Of the so-called out
side public, which also had become i'm.
pressed by the brighter outlook at home
and abroad. Incidentally also that ele
ment was encouraged by the more hope
full views taken by interna tional banking
houses.
justification for the belief that the
worst of the decline had been seen was
found by bulls in the bank statement is.
sued after the close OF the market. These
showed that the position of the banks OF
the New York district had improved
greatly.
That the Federal Reserve Bank itself
had succeeded in halting the pro.
longed deterioration of its reserves was
shown by the fact that the reserve ratio
reported was almost 3 per cent higher
previous week. Moreover, the Clearing
House banks also showed progress in
their programme of putting their houses
in order" Their deficit in reserves had
been wiped out and had been replaced by
substantial surplus. Loans have been
curtailed and reserve in the Federal Bank
had increased almost $JO,OO00OOO.
Steel industrials were among the
strongest properties. United States Steel
common after a reaction to 1912 moved
up / point. Baldwin and Republic with
wider fluctuations ended with substantial
gains as result Of the half days trad.
ing
Many of the oil stocks also showed
they had been oversold with the greatest
gains in that group being made in Shell
Transport. Royal Dutch and the Doheny
group. Middle States Oil was one of the
weakest features.
\ The marine issues had better tone.
Public utilities were strong in the belief
that such issues must be the first and
greatest beneficiaries of deflation.