Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-21
NEWS OF FINANCIAL WORLD-N
STRENGTH OF MINOR RAILS
GAVE BACKBONE TO MARKET
Price Movements We're More Irregular but Underone Of the
List Vas Decidedly Strong

funk. one of the recognized judges Of
market tendencies asserted the extent
| of the downward movement could not
be judged by an established precedent,
but must be allowed 10 run its course.
The ebb tide, he asserted, would be
likely to run without interruption until
about the middle of February, about
which time signs and signals should be
discernible of giving q possible idea of
the future trend of the market.
Later on, he remarked, the only
crumb of comfort to be found in the
alarming steady depreciation of market
values lay in the fact of the ever posi-
bility Of professional Wall Street over
stepping its market. which it had the
custom Of doing on either the great up
ward up or down swings: -
The wisdom of this philosophy was
fully attested in the remarkable right
about face turn in the market trend
this week. Allowing the ultra profess
sional colo-ing Of the weeks operations,
the undeniable over sold condition of the
market cannot be disputed. That fact
was plainly apparent at all stages of the
rebound, as well as the testimony of the
systematic absorption of the better
grade of stocks during the more violent
periods Of the reactionary movement.
There was found, when the tide of val
ues turned TO the food, as glaring de-
fciency IN the supply of stocks OBJ
tainable as there was in the over abun-
dant offerings on the crest Of bullish
wave last fall.
Naturally, there is considerable di-
versity of opinion as to the character of
the market reversal, some contending
it is but temporary shift as a result
of technical influences. Others voice
the opinion of it marking the inception
of q forward movement of considerable
magnitude.
Unquestionably the sharp rebound
from the abnormally low levels of the
preceding had for its primary incep
tion the covering of largely over ex-
tended short interest. The vigorous ma
ture of the recovery movement proved
that. There was also considerable re-
buying, especially in the railroad divi-
sion on part of those selling in Decem
Der to establish losses for income state
ment, and who had been holding off with
that ever hope of still getting 'em
cheaper.
Whether the turn is only temporary
or not, it is generally conceded in bet
ter informed quarters that much of the
adverse side of the situation is known,
and in the prospective, has been dis
counted. On the other hand, every
clear minded observer recognizes the
futility of expecting a continued broad
market movement until the monetary
situation becomes much easier.
There is not as yet reliable evidence
of material improvement in the money
situation. The lower demand loan rate
reflects superficial, rather than real
changes. The more true index will be
found in the time loans, where there
is at present no essential change dis
cernibe.
The certain degree of uncertainty at
tending the basic fundamental conditions
can also be expected to promote a GER
tain degree of restraint. Yet after
all, for the first time since election, the
market world this week enjoyed the
privileges of seeing a rift in the clouds
which have for so long befogged the
financial horizon.