New-York tribune., 1920-12-05
Oils Advance
As Shorts Buy:
Trading Quiet
Ease With Which Several
Issues Rise lmparts a
More Cheerful! Tone:
Southern Pacific Active

An extended shor, interest In the
OIL shares beat hasty retreat YES
terday and the bears in their hurried
efforts TO cover their commitments
'ound rather scanty supply. which
resulted in many issues rising sharply
20 new highs for the current recover
inG movement. The demonstration in
the oils supplied about the only in
terestlng development in the two
hours Of trading. The ease with
which these shares mounted created q
much more cheerful feeling IN specu-
iative and investment circles and was
accepted as indicating what MIGHT also
happen in other parts of the list.
The upturn in Mexican Petroleum.
"nlch was really sensational with the
-ocf umping more than 8 points on
dealings of Approximately so 600
sh~ies, was continuation OF the
h.oFeMcnt begun earlier in the week.
On friday, tor exam pie this issue
closed more than ! Toints up and its
present quotation around iSO com.
pares With low 10. the yeat Of l4s
reached on the drastic break Of few
weeks ago. Unconfrmed reports con-
nee. 'he sudden accession OF strength
IN NeXIcan Petroleum TO expectations
u an eavly annouac, ment Of plan
aere2y holders OF lhe took viii be
"o.e to make an exchange for shares
ot the Pan-AmericNn Petroleum &
transport Company, another Dohenv
concern, on an exceedingly favorable
oasis. v neither or not the reports are
true. there has been enough orying in
NeX can Petroleum In this connection
0ther contributing factor was the in
dication of early recognition Of the
new regime in Mexico.
=. win the discontinue of shorts in
Mexican PetrO cum the other oils
sprang into action and substantial
gains were recorded n the Par-Ameri-
can Petroleum issues, Houston oil.
Sal fornia Petroleum end Atlantic.
Gulf West Indies. which controls
Steel shares were a'so prominent in
the trading, more particularly the in
cepeOdents, such as CIucible and
lackawanna. Steel common closed q
raction UP at SO Among the rails
tern Pacific continued an active
leader. with only Slight net change
al. Ano,her s. 100000 shipment Of gold
from London for account Of the Brit.
ish Treasury reached here YESTERDAY
"hlch brings the total on the move
ment 10 $4,000 600 Indications are
at more gold VIII como forward be-
lore the flow ceases. DESPITE the ac-
eesslons to the gold supply through
ne oritish shipments the Federal
Reserve Bank Of New York disclosed a
much less favorable position at The
end Of the week 1t reported IN its
statemert a ratio of total reserves to
deposit and Federal reserve note
liabilities, combined Of 37S per cent.
comDared with 40 per cen. the pre-
cedlng week, while its ratio of re-
serves 70 net deposits after deductinr
~ per cent gold reserves AGAINST
FEDERAL reserve notes in circulation
was b per cent. aoains. 41.9 per cent
ne week before What haYnonod was
tnat the local ba>k lost more than
Sl{ 100000 n gold 10 the interior
oanHs trough the gold settlement
fcnd - iNgton, a tendency whie,.
was apparently he result Of a desire
on the part Of the interior to preDar.
or the heavy December is Federal
income and excess profits taxes Mem
Der hanks in this district also in
creased their borrowings against com
merclal paper. The New York Clear
lng House banks made ID he defcit
reported week AGO and showed an IN
crease IN surplus Of 50 0ff540 The
eaecss OF the liquidation in the Sc
curlties and commodity markets w~re
Nisl pie In the contraction OF S2JlfC.nOn
n loans and discounts. wh @ nc. de-
mard deposits dropped S4E.276N0