Evening star., 1920-03-04
RA|tSFEATURE
STRONG MARKET
BY STUART II. WEST.
Special Correspondent Of The Star.

| 1.-THE market yesterday and the day
before had given plain enough PROOF
to observers of experience that it had
| got itself into a sold-eut condition
Despite the great preponderance OF
| bearish sentiment, despite the per-
sistence of bearish attacks. oferings
of real stock had evidently ceased.
| The same class of critics who had oeen
eytravasantly bullish last Octoper
when prices were at the top OF the'r
upswing, were talting and Wr1t's
Just as extravagantly about impend-
| ing panic with stocks down all the way
| from % to so points.
The same class of petty spectators
| who rarely make any money in wall
street in the long run were ranged
| on the short side. Yet with all wan
street loans were down to half what
| they We're at the top of the autumn
| boom. The speculative position had
been thoroughly liauidated.
Primed for sharp Rise.
The situation within the market
| was therefore nrimed for a sharp up
| ward turn as soon as the least en-
| couragement was given. The 1nlpuls'
| came this morning in the shape OF
! the first signs that have anpeared IN
more than a week of easier money
l
was slight. The renewal rate sun
stood at per cent.
| But this reduction. small as il was
| was tho first that had occurred in
! fortnight 1t was Indicative OF p
freer supply cf funds, and such WAS
properly REGARDED as of much signin-
Cance. The Wall street bear party had
pinned their faith upon high money
rates and upon this tension lasting
certainly until after the middle OF the
month when the tax payments fal
cue. They We're completely taken
back by the easing of rates TINS
morning
The Junior Rails.
1t was an indication Of how largely
Wall street takes it's cue nowadays
from the stock tape that the effort
should have been made to fnd any
outside explanation of YESTERDAY
heaviness in the low-nriced rails. The
idea was put forward that the mar
ket last week had taken too much for
granted regarding the effects of the
new rail legislation. that there was
still much uncertainty regarding the
attitude Of the Interstate Commerce
Commission and that this was the rea-
son why the railway shares were be-
ing sold. OF course. this was nothing
more than an attempt TO trump up
some excuse for what was nothing
more than natural market f1uctua-
ton.
Rock Island common. for instance.
had gone up almost without interrupt
ton from around "a to around Al.
1t was certainly not surprising that
it should have come down to 30 u as
a mere normal reaction under specu-
lative prof1t-taking.
What was true Of Rock Island was
true also of all the other junior rails.
which had been conspicuous in last
weeks advance. Yesterdays selling
was nothing more than the taking of
profits by in and out speculators. II
required no outside explanation and
certainly indicated no change in the
main attitude of the important holders
of these stocks.
This reaction was completed yeSter-
day and at the same time a. consider
a BILE short interest had developed.
had been well absorbed. and when it
was seen that no more long stock
was coming out the bear crowd rush
ed into cover causing sharp jump
Of point to points within a few
minutes in Rock Island. New Haven
and the other leaders
Royal Dutch.
The principal inspiration for the
move in Royal Dutch came once more
from London. A house which does
large business for London account
took 5000 shares when the stock was
selling around 80. and it was this
buying which put the price across par.
Shell Transport went up syrnpatheti-
cally. A good many spectators had
been credulous to believe the news
paper story about a plan to control
the big oil concerns. especially Royal
Dutch. and had sold short on the
strength of the yarn. These shorts
were run in as the stock went through
100.
Chandler Motors.
An increase in the dividend rate OF
pected this week. when the directors
meet to take action. Chandler, has
been one Of the strongest Of the motor
groups. although it has been under
pressure for some time. The company
is continuing to report big earnings
that there has been backing up in
the motor industry due to the money
stringency Chandler continues to do
record business. One big wire house
auto shares in the past said this morn
ing that instead of the auto busi-
ness going to pieces because Of can
cellations. We find the Ford company,
the larsest producer in cars in the
industry and wholly devoid of Wall
street speculative interest. advancing
prices 16 per cent"
The Marines
About nine-tenths Of Wall street
observers look upon the recovery in
the sharea of the International Mer-
camille Marine Company as a run in
OF the shorts. but it can be said with
authority that the buying of Marine
preferred and to lesser extent in
the common in the past week has been
of the very best. The situation in
Marine. like that in so many other com
pan1es whose shares are dealt in on
the stock exchange, has taken a def
mite turn for the better. The recent
action Of the Shipping Board in turn.
ing over most Of the ships which have
been operate by the board to private
agencies. who in turn from now on
Will nx shipping rates, Is considered q
| decidedly constructive measure. An
other thing which can be said in ia
vor OF the Marine 10 that the improve
ment which has started in shipping
| circles will continue as foreign ex-
Change rates improve
Butte CoDDsf and zins.
Butte Copper and Zinc shipments Of
zino ore In January amounted to $500
tons, which nettsd the company about
Sl2 Per ton. Manganese shipments
nave again been inaugurated by the
company. with more than 100 tons
aaiiy going to one smslter and fifty
| Ions to steel plants In Chicago and
birmingham. Fsrro- manganese In the
last month has made d substantial ad-
vance and IL now selling at A10O a
ton. and price of 5000 q ton is look
90 Tor IN the very HSar future. The
Emma mine. which IL the manganese
| mine OF the Butte Copper and Zinc
Company. has about 1000, 900 tons OF
Manganese ore available and this
runs about 50 per cent manRansse 1t
takea only little more than two tons
OF the Emma manganes ore to make